We often take for granted the Land Bank and the enormous amount of good that has been done for our island community through their efforts. Today over one half of the island is preserved as open space by various conservation groups including the Land Bank. Open space provides areas for people to enjoy, helps to maintain habitat for hundreds of species, and helps to protect the island’s aquifer by providing ample unspoiled acreage for rain and snow water recharge — our sole source of drinking water. Some of the more familiar Land Bank properties are Miacomet Golf Course, Gardner Farm, Sanford Farm West, Polpis Harbor and Lily Pond.
The Nantucket Islands Land Bank Fee is a 2% transfer tax on the purchase of real estate on Nantucket, typically paid by the buyer. Since the inception of the program there has been an exemption for first time buyers who meet certain conditions. The exemption was raised in 2016 from $400,000 to $500,000. The first time buyer exemption applies to buyers who have never owned real estate (anywhere) and who will occupy the property for a minimum of five years after purchasing it. The Land Bank places a lien on the property that is released once the conditions have been met.
The Nantucket Land Bank recently adopted a new exemption from its 2% fee on real estate transactions to further help buyers who are buying a property subject to affordable housing restrictions on Nantucket. Exemption O applies to those who are purchasing a Nantucket Housing Needs Covenant or Habitat for Humanity property.
We applaud the Land Bank Commission for pro actively responding to the current real estate market conditions.The new exemption went into effect on June 1st. Contact your broker for more information.