HF 2188 (LSB 5440HV (1) 90)

HOUSE FILE 2188

BY  COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY

(SUCCESSOR TO HSB 557)

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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 428A.8, subsection 3, Code 2024, is amended by striking the subsection.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   The housing trust fund (HTF) was established for the development and preservation of affordable housing for low-income people in the state and for the Iowa mortgage help initiative.
   Each month county recorders remit 82.75 percent of the real estate transfer tax (RETT) receipts to the department of revenue (DOR), and deposit the remaining 17.25 percent of the RETT receipts in the county general fund. Of the RETT receipts transferred to DOR, DOR transfers 65 percent to the state general fund, 30 percent to the HTF, and 5 percent to the shelter assistance fund. Currently, DOR may deposit a maximum of $7 million of RETT receipts into the HTF per year. Any amounts over $7 million are deposited into the state general fund.
   This bill removes the $7 million annual maximum that may be deposited into the HTF.