Clarkstown's proposed Community Preservation Act tax would charge buyers a one-time fee of up to 0.75% at closing. The first $780,000 of every sale would be exempt. The town has said the money would go toward preserving open space, historic landmarks, farmland and water resources. The $780,000 exemption decides who actually pays. Over the most recent twelve months, the typical Rockland County single-family sale came in just below that line. For someone buying or selling in New City, the tax would barely touch the middle of the market and would grow quickly above it.
Nothing is being collected yet. Clarkstown voters still have to approve the tax in a referendum. Still, an offer written this year can turn into a resale a few years from now, so it helps to know how the tax would work if it passes.
The exemption is subtracted from the price
The state law behind the proposal is Chapter 191 of 2026, which passed as Assembly bill A11349 and Senate bill S10276-A. Governor Kathy Hochul signed it on July 31, 2026. It lets the town adopt a tax of up to 0.75% of the sale price. The town's own local law would set the actual rate, and that local law requires a mandatory referendum.
The exemption language is in Tax Law §1450-ee. It says the exemption equals "the median sales price of residential real property within the applicable county," as determined by the state's Office of Real Property Tax Services (ORPTS), and that it applies "on the consideration of the conveyance." The statute doesn't show the math. The Town of Red Hook, in Dutchess County, uses the same kind of county-median exemption for its own transfer tax, and its official return does. The form has you enter the county median on its own line and subtract it from the sale price. If the result is negative, no tax is owed. If it's positive, only that remaining amount is taxed. Clarkstown hasn't published a return form yet. Tax Law § 1450-cc gives that job to the Rockland County treasurer.
ORPTS's current table lists Rockland County's 2025 median residential sale price as $780,000. The 2024 figure was $746,300, and the 2023 figure was $665,000. The table was last updated April 16, 2026. With that number as the deduction, a sale at or below $780,000 would owe nothing. A sale above it would be taxed only on the amount over $780,000.
What the bill would be at different New City price points
The table assumes the full 0.75% rate and the $780,000 exemption. The prices are examples, not quotes on any particular property.
| Purchase price | Amount above $780,000 | Tax at 0.75% |
|---|---|---|
| $546,000 | $0 | $0 |
| $776,000 | $0 | $0 |
| $813,750 | $33,750 | about $253 |
| $900,000 | $120,000 | $900 |
| $1,000,000 | $220,000 | $1,650 |
| $1,250,000 | $470,000 | $3,525 |
| $1,500,000 | $720,000 | $5,400 |
| $2,000,000 | $1,220,000 | $9,150 |
The first three prices come from current market data. OneKey MLS's August 2026 Rockland County report shows a $546,000 median for condos, $813,750 for single-family homes that month, and $776,000 for single-family homes over the twelve months through August 2026.
The Rockland County Business Journal reported in August that the tax would come to "about $5,000" on a median-priced single-family home in Clarkstown, citing real estate data platforms. The article doesn't give the price it assumed or say whether the exemption was included. Under the subtraction method, a $5,000 tax works out to a purchase price of about $1.45 million. That figure could make sense for some homes in Clarkstown. It doesn't describe the countywide median sale.
The line falls almost exactly at the middle of the market
The exemption ends up very close to the market's middle. Over the twelve months through August 2026, the Rockland County single-family median was $776,000, just $4,000 under the ORPTS line. By definition, about half of single-family sales close at or below the median. In those months, about half of the county's single-family sales would have owed no Clarkstown-style tax, and many of the rest would have owed a few hundred dollars.
The tax adds up mainly at the top. Up to the line, it's zero. After that it grows by $75 for every $10,000 of price. On a $1 million home it comes to less than a fifth of one percent of the price. On a $2 million home it's still under half a percent. The 0.75% rate only matters for the portion of a sale above $780,000.
One limit applies here. The public OneKey and Hudson Gateway Association of Realtors reports used for this post give county-level figures. They don't give a separate median for the 10956 ZIP code or show how sales are spread across price bands. Where a given New City home falls relative to the line depends on that home's own price, not on the county average.
The line moves every year
The exemption isn't a fixed dollar amount. The statute ties it to whatever ORPTS reports as the county median. That figure rose from $665,000 to $780,000 between 2023 and 2025. If prices keep rising, the exempt amount rises with them.
That matters for a buyer looking at a $900,000 home today who plans to sell in five years. If the county median also goes up over that time, the tax on the next buyer won't simply grow with the home's price. Only the gap between that sale price and the newer median would be taxed. A home that keeps pace with the county market would face roughly the same tax years from now as it would today.
Months-to-month swings don't move the exemption. Rockland's single-family median in August 2026 was $813,750, up 4.3% from August 2025, while inventory held almost flat at 483 homes. Spikes like that don't change the exemption until ORPTS publishes its next annual figure.
Who writes the check
Under Tax Law § 1450-dd, the buyer is responsible for paying the tax. If the buyer doesn't pay, the seller has to, and the two are jointly and severally liable. That obligation would sit alongside New York State's own 0.40% transfer tax, which the Business Journal noted in its coverage.
Who actually ends up bearing the cost is a separate question, and it's still being argued. The New York State Association of Realtors says the measure makes it "even harder to buy a home." Others quoted in local coverage argue that buyers will factor the tax into what they offer, which would cut into sellers' equity. The town's position is that a one-time charge at closing replaces the alternatives it considered, which were large bond issues or a new conservation taxing district that every property owner would pay into each year. The town assessor's office estimates the fee would raise nearly $5 million a year. Both effects run through the same exemption. Below the line, neither the buyer nor the seller has anything to absorb.
The statute also exempts some transfers entirely. These include conveyances by government entities, certain transfers made without payment, changes in the form of ownership that don't change who owns the property, and some properties restricted for conservation.
When this could apply
Several steps have to happen before any New City closing is affected.
- Ballot timing. Clarkstown missed the August 3 deadline to put the question on the November 3, 2026 ballot. The Rockland County Board of Elections said the town could hold a special election later or wait until November 2027. As of the town's news postings through October 1, 2026, no referendum date had been announced.
- A local law. The town has to adopt a local law that sets the rate, and voters have to approve it.
- A start date. Under Tax Law § 1450-bb, the tax could only start on the first of a month the town chooses, at least 60 days after its local law is enacted. It would not apply to qualifying binding contracts signed before then.
The same preservation effort is behind the town's six-month building moratorium, enacted September 18, 2026. It pauses approvals for multifamily projects, large subdivisions, and larger commercial and industrial development while a new Community Preservation Board drafts the preservation plan the act requires. Individual residential projects, small subdivisions, commercial projects under 5,000 square feet, and projects in the Nanuet Hamlet Center are exempt. The pause can be extended by up to six more months.
Common questions
Would a buyer under contract on a New City home this fall owe the tax? No. The tax isn't in effect, no referendum has been scheduled, and the law excludes qualifying contracts signed before the start date.
Is the rate definitely 0.75%? That's the state ceiling and the rate the town has described publicly. The final rate would be set in the town's local law.
Does the exemption apply only to first-time buyers? No. The median-price exemption applies to every sale. Under Tax Law § 1450-ff, a separate credit is available for transfer tax the same buyer already paid on a lease, option, or contract for the same property.
Would condo buyers pay it? In August 2026, the Rockland condo median was $546,000, well under the $780,000 exemption. Most condo sales near that median would owe nothing. This is general information, not tax or legal advice. Your attorney can confirm how the tax would apply to a specific contract.
If you're pricing a New City home above $780,000 or writing an offer on one, Debra Gay can calculate what the proposed tax would mean at your exact price and keep you posted as Clarkstown sets a referendum date. Let's Connect.
