House File 815 - Introduced HOUSE FILE BY HUSER and JACOBS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the disposition of certain real estate 2 transfer tax receipts by the treasurer of state. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1357YH 81 5 tm/sh/8 PAG LIN 1 1 Section 1. Section 428A.8, Code 2005, is amended to read 1 2 as follows: 1 3 428A.8 REMITTANCE TO STATE TREASURER == PORTION RETAINED 1 4 IN COUNTY. 1 5 1. On or before the tenth day of each month the county 1 6 recorder shall determine and pay to the treasurer of state 1 7eighty=two and three=fourths percentthe applicable percentage 1 8 of the receipts from the real estate transfer tax collected 1 9 during the preceding month as determined in subsection 2 and 1 10 the treasurer of state shall depositninety=five percent of 1 11 the receipts in the general fund of the stateand transfer 1 12five percent ofthe receiptsto the shelter assistance fund 1 13 created in section 15.349as provided in subsection 3. 1 14 The county recorder shall deposit the remainingseventeen 1 15 and one=fourth percent of thereceipts in the county general 1 16 fund. 1 17 Any tax or additional tax found to be due shall be 1 18 collected by the county recorder. If the county recorder is 1 19 unable to collect the tax, the director of revenue shall 1 20 collect the tax in the same manner as taxes are collected in 1 21 chapter 422, division III. If collected by the director of 1 22 revenue, the director shall pay the county its proportionate 1 23 share of the tax. Section 422.25, subsections 1, 2, 3, and 4, 1 24 and sections 422.26, 422.28 through 422.30, and 422.73, 1 25 consistent with this chapter, apply with respect to the 1 26 collection of any tax or additional tax found to be due, in 1 27 the same manner and with the same effect as if the deed, 1 28 instrument, or writing were an income tax return within the 1 29 meaning of those statutes. 1 30 The county recorder shall keep records and make reports 1 31 with respect to the real estate transfer tax as the director 1 32 of revenue prescribes. 1 33 2. The "applicable percentage" for purposes of subsection 1 34 1 is the following: 1 35 a. For the fiscal year beginning July 1, 2005, sixty=two 2 1 and one=quarter percent. 2 2 b. For the fiscal year beginning July 1, 2006, fifty=eight 2 3 and three=twentieths percent. 2 4 c. For the fiscal year beginning July 1, 2007, fifty=four 2 5 and one=twentieth percent. 2 6 d. For the fiscal year beginning July 1, 2008, forty=nine 2 7 and nineteen=twentieths percent. 2 8 e. For the fiscal year beginning July 1, 2009, forty=five 2 9 and seventeen=twentieths percent. 2 10 f. For the fiscal year beginning July 1, 2010, and each 2 11 fiscal year thereafter, forty=one and three=quarters percent. 2 12 3. The treasurer of state shall deposit or transfer the 2 13 receipts paid the treasurer of state pursuant to subsection 1 2 14 to either the general fund of the state, the housing trust 2 15 fund created in section 16.181, or the shelter assistance fund 2 16 created in section 15.349 as follows: 2 17 a. For the fiscal year beginning July 1, 2005, seventy 2 18 percent of the receipts shall be deposited in the general 2 19 fund, twenty=five percent of the receipts shall be transferred 2 20 to the housing trust fund, and five percent of the receipts 2 21 shall be transferred to the shelter assistance fund. 2 22 b. For the fiscal year beginning July 1, 2006, sixty=five 2 23 percent of the receipts shall be deposited in the general 2 24 fund, thirty percent of the receipts shall be transferred to 2 25 the housing trust fund, and five percent of the receipts shall 2 26 be transferred to the shelter assistance fund. 2 27 c. For the fiscal year beginning July 1, 2007, sixty 2 28 percent of the receipts shall be deposited in the general 2 29 fund, thirty=five percent of the receipts shall be transferred 2 30 to the housing trust fund, and five percent of the receipts 2 31 shall be transferred to the shelter assistance fund. 2 32 d. For the fiscal year beginning July 1, 2008, fifty=five 2 33 percent of the receipts shall be deposited in the general 2 34 fund, forty percent of the receipts shall be transferred to 2 35 the housing trust fund, and five percent of the receipts shall 3 1 be transferred to the shelter assistance fund. 3 2 e. For the fiscal year beginning July 1, 2009, and each 3 3 fiscal year thereafter, fifty percent of the receipts shall be 3 4 deposited in the general fund, forty=five percent of the 3 5 receipts shall be transferred to the housing trust fund, and 3 6 five percent of the receipts shall be transferred to the 3 7 shelter assistance fund. 3 8 EXPLANATION 3 9 This bill relates to the disposition of certain real estate 3 10 transfer tax receipts by the treasurer of state and provides 3 11 an applicability date. 3 12 Currently, when there is consideration and the actual 3 13 market value of the real property transferred is in excess of 3 14 $500, the tax is 80 cents for each $500 or fractional part of 3 15 $500 in excess of $500. On or before the 10th day of each 3 16 month the county recorder determines and pays to the treasurer 3 17 of state 82.75 percent of the receipts from the real estate 3 18 transfer tax collected during the preceding month and the 3 19 treasurer of state deposits 95 percent of the receipts in the 3 20 general fund of the state and transfers 5 percent of the 3 21 receipts to the shelter assistance fund. 3 22 The bill reduces the percentage of the receipts that a 3 23 county recorder pays to the treasurer of state each month. 3 24 For the fiscal year beginning July 1, 2005, the county 3 25 recorder shall pay to the treasurer of state 62.25 percent of 3 26 the receipts from the real estate transfer tax collected 3 27 during the preceding month. The reduction is 4.1 percent each 3 28 year thereafter and, by the fiscal year beginning July 1, 3 29 2010, and each fiscal year thereafter, the county recorder 3 30 shall pay to the treasurer of state 41.75 percent of the 3 31 receipts. 3 32 The bill modifies the use of the receipts that are paid to 3 33 the treasurer of state each month. For the fiscal year 3 34 beginning July 1, 2005, the bill reduces the percentage of 3 35 receipts deposited in the general fund to 70 percent and the 4 1 percentage is reduced each fiscal year thereafter by 5 4 2 percent. By the fiscal year beginning July 1, 2009, and each 4 3 fiscal year thereafter, 50 percent of the receipts received by 4 4 the treasurer of state shall be deposited in the general fund. 4 5 For the fiscal year beginning July 1, 2005, the bill increases 4 6 the percentage of receipts transferred to the housing trust 4 7 fund to 25 percent and the percentage is increased each fiscal 4 8 year by 5 percent. By the fiscal year beginning July 1, 2009, 4 9 and each fiscal year thereafter, 45 percent of the receipts 4 10 received by the treasurer of state shall be transferred to the 4 11 housing trust fund. The bill does not modify the percentage 4 12 of receipts being transferred to the shelter assistance fund. 4 13 LSB 1357YH 81 4 14 tm:nh/sh/8.1