Jacobs Votes Against New Land Transfer Tax

Despite an emphatic "no" from Nassau County Legislator Judy Jacobs (D-Woodbury) and her fellow Democrats, a 1 percent land transfer tax was passed by the legislative majority in the late evening hours yesterday.

Legislator Jacobs speaks at a press conference at which Democrats proposed a law calling for a fiscal oversight board. From left are Assemblywoman Earlene Hill, Legislator Barbara Johnson, Legislator Michael Zapson, Legislator Jacobs, Legislator Lisanne Altmann and Assemblyman Thomas DiNapoli.

"The transfer tax has transferred the blame for poor fiscal management onto the shoulders of the taxpayers of Nassau County," said Jacobs, minority leader for the legislature.

Democrats have long been vehemently opposed to the new Republican tax, without some form of fiscal oversight of the county's budgeting practices. On Monday, Legislator Jacobs attempted to introduce by emergency a law calling for the creation of a fiscal oversight board. However, the request to have the resolution put on the legislative agenda was denied by Presiding Officer Bruce Blakeman. Republicans instead introduced a law calling for a Blue Ribbon Budget Advisory Panel.

"Window dressing is not good enough," said Jacobs of the Blue Ribbon panel. "It's a poor substitute for a fiscal oversight board. Advice alone has fallen on deaf ears for too long in Nassau County."

Democrats voted against the Blue Ribbon Panel resolution, stating that they believe it would not be effective, unless coupled with strong fiscal oversight. Last week Jacobs and her Democratic colleagues introduced a local law calling for the establishment of a fiscal oversight board.

"Without budget reforms and strict oversight of the budget process, imposing this new tax on the taxpayers of this county is like throwing good money after bad," Jacobs said. "It doesn't fix the problem."

Although the transfer tax was proposed by County Executive Thomas Gulotta several months ago, the county legislature first had to request state action on the transfer tax. Then, the New York State Legislature had to authorize the tax. The county legislature voted to impose the tax yesterday. It is estimated that the new tax will raise about $50 million annually. The new tax is a 1 percent charge on real estate transfers over $500 and is effective Aug. 15. Any binding written contracts entered into prior to that date will not be subject to the fee. The new law will be in effect for 18 months.