Bills › 89th General Assembly
Relating to real estate transfer tax moneys transferred to the housing trust fund
Sponsored by the Senate Appropriations Committee
Topics:State budgetHousing & property
Same legislation: SSB 1270
Where it is now
- Done: IntroducedApril 20, 2021
- Done: SubcommitteeApril 21, 2021
- Done: Senate committeeApril 27, 2021
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
Under current law, percent of the real estate transfer tax receipts paid by county recorders to the treasurer of state are transferred to the housing trust fund in any one fiscal year, subject to a $3 million cap; moneys in excess of the cap are deposited in the general fund of the state. This bill increases the cap to $5.5 million.
Senate subcommittee
Named April 21, 2021 (as SSB 1270). On April 26, 2021 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Less revenue: up to $5.5M Compare with other bills
AI summary This bill increases the annual limit of real estate transfer tax money sent to the Housing Trust Fund from $3.0 million to $5.5 million. This change is estimated to increase Housing Trust Fund revenue and reduce net General Fund revenue by $2.5 million annually beginning in fiscal year 2022.2
Read the fiscal note
Description
Senate File 612 increases the annual $3.0 million cap placed on the transfer of the real estate transfer tax receipts to the Housing Trust Fund to $5.5 million, effective July 1, 2022.
Background
The real estate transfer tax is imposed on the transfer of real estate in the State. The tax is equal to $0.80 per $500 (or any fractional part of $500) of consideration paid as part of or a condition of the property transfer. As examples, the transfer of a $1,200 property would incur a tax of $2.40, while the transfer of a $1.0 million property would incur a tax of $1,600. The tax is paid to the county. Iowa Code section 428A.8 controls the division of the tax revenue. The county retains 17.25% of the tax revenue for deposit in the county general fund. The county remits the remaining 82.75% to the State. The State portion is deposited as follows:
- 30.0% to the Housing Trust Fund up to a limit of $3.0 million each fiscal year.
- 5.0% to the Shelter Assistance Fund.
- 65.0%, plus any Housing Trust Fund revenue in excess of $3.0 million, to the General Fund. The following table provides a history of real estate transfer tax deposits to State funds for the past four fiscal years.
Assumptions
Based on an average annual growth rate from FY 2007 to FY 2020 of 2.3%, the real estate transfer tax will produce $25.7 million in revenue in FY 2022, of which 30.0% (estimated at $7.7 million) will be deposited into the Housing Trust Fund.
Fiscal Impact
Increasing the Housing Trust Fund’s annual $3.0 million real estate tax revenue limit to $5.5 million is estimated to increase Housing Trust Fund revenue and reduce net General Fund revenue by $2.5 million annually beginning in FY 2022.Fund FY 2017 FY 2018 FY 2019 FY 2020 Housing Trust Fund 3.0$ 3.0$ 3.0$ 3.0$ Shelter Assistance Fund 1.1 1.2 1.2 1.2 State General Fund 18.6 19.2 19.1 20.3 Total 22.7$ 23.4$ 23.3$ 24.5$ Real Estate Transfer Tax Revenue, State Portion
In Millions
Sources
- Legislative Services Agency
- Iowa Department of Revenue
- Real Estate Transfer Tax · April 28, 2021 · $5.5M
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89th General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 2036 Relating to real estate transfer tax moneys transferred to the housing trust fund88th General Assembly · Subcommittee recommends passage · same titleCleared committee
- HF 2163 Relating to real estate transfer tax moneys transferred to the housing trust fund88th General Assembly · In committee · nearly identicalCleared committee
Similar bills this General Assembly
- SF 10 Relating to real estate transfer tax moneys transferred to the housing trust fund89th General Assembly · In committeeNearly identical
Matched by wording or an identical title.