A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.

Senate

File

436

-

Introduced

SENATE

FILE

436

BY

WEINER

,

DONAHUE

,

DOTZLER

,

WINCKLER

,

CELSI

,

STAED

,

TOWNSEND

,

PETERSEN

,

and

QUIRMBACH

A

BILL

FOR

An

Act

removing

the

maximum

annual

amount

of

real

estate

1

transfer

tax

receipts

that

may

be

transferred

into

the

2

housing

trust

fund.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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S.F.

436

Section

1.

Section

428A.8,

subsection

2,

Code

2025,

is

1

amended

by

striking

the

subsection

and

inserting

in

lieu

2

thereof

the

following:

3

2.

For

the

fiscal

year

beginning

July

1,

2025,

and

each

4

succeeding

fiscal

year,

of

the

receipts

remitted

to

the

5

department

of

revenue

under

subsection

1,

sixty-five

percent

6

of

the

receipts

shall

be

deposited

in

the

general

fund,

thirty

7

percent

of

the

receipts

shall

be

transferred

to

the

housing

8

trust

fund

created

in

section

16.181,

and

five

percent

of

the

9

receipts

shall

be

transferred

to

the

shelter

assistance

fund

10

created

in

section

16.41.

11

Sec.

2.

Section

428A.8,

subsection

3,

Code

2025,

is

amended

12

by

striking

the

subsection.

13

EXPLANATION

14

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

15

the

explanation’s

substance

by

the

members

of

the

general

assembly.

16

The

housing

trust

fund

(HTF)

was

established

for

the

17

development

and

preservation

of

affordable

housing

for

18

low-income

people

in

the

state

and

for

the

Iowa

mortgage

help

19

initiative.

20

Each

month

county

recorders

remit

82.75

percent

of

the

21

real

estate

transfer

tax

(RETT)

receipts

to

the

department

22

of

revenue

(DOR),

and

deposit

the

remaining

17.25

percent

of

23

the

RETT

receipts

in

the

county

general

fund.

Of

the

RETT

24

receipts

transferred

to

DOR,

DOR

transfers

65

percent

to

the

25

state

general

fund,

30

percent

to

the

HTF,

and

5

percent

to

the

26

shelter

assistance

fund.

Currently,

DOR

may

deposit

a

maximum

27

of

$7

million

of

RETT

receipts

into

the

HTF

per

year.

Any

28

amounts

in

excess

of

$7

million

are

deposited

into

the

state

29

general

fund.

30

This

bill

removes

the

$7

million

annual

maximum

that

may

be

31

deposited

into

the

HTF.

32

The

bill

also

strikes

outdated

phase-in

language

in

Code

33

section

428A.8(2).

34

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