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.
Instituted in 1983, the Nantucket Islands Land Bank was the first of its kind in the country and was created to acquire, hold and manage important open spaces on the island. Bill Klein, then our Planning Director, had the vision to harness the power of an ever-escalating real estate market by establishing a transfer fee of 2% on the sale of all real estate on Nantucket. Interestingly enough, Bill lobbied the leaders of the real estate community to get on board and support the initiative. Thankfully they did.
The Land Bank fee is typically paid by the purchaser of real estate and, although it is not tax-deductible, it can be added to the cost basis of the property thereby reducing the taxable gain when the owner decides to sell. There is an exemption for first time buyers, who have never owned any real estate anywhere ever, from the land bank fee on the first $400,000 of the purchase price.
Since its inception, the Land Bank fee has generated more than $289 million dollars and has acquired over 3,000 acres of open space.
The home rule petition, granted by the Commonwealth of Massachusetts, enabled a Land Bank Commission of five elected members to implement and oversee the mission of the act. Fun fact: It is called the Nantucket Islands Land Bank (plural) because it includes Tuckernuck and Muskeget islands to the west of Nantucket. For more information, please check out www.nantucketlandbank.org.