House File 2188 - Introduced HOUSE FILE 2188 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 569) A BILL FOR An Act relating to real estate transfer tax, including 1 declarations of value. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5748HV (1) 91 lh/jh
H.F. 2188 Section 1. Section 428A.1, subsection 2, Code 2026, is 1 amended to read as follows: 2 2. When each deed, instrument, or writing by which any real 3 property in this state is granted, assigned, transferred, or 4 otherwise conveyed is presented for recording to the county 5 recorder, a declaration of value signed by at least one of the 6 sellers or one of the buyers or their agents shall be submitted 7 to the county recorder. However, if the deed, instrument, or 8 writing contains multiple parcels some of which are located in 9 more than one county, separate declarations of value shall be 10 submitted on the parcels located in each county and submitted 11 to the county recorder of that county when paying the tax as 12 provided in section 428A.5 . A declaration of value is not 13 required for those instruments described in section 428A.2, 14 subsections 2 through 5, and 7 through 13, and 16 through 21 15 22 , or described in section 428A.2, subsection 6 , except in the 16 case of a federal agency or instrumentality, or if a transfer 17 is the result of acquisition of lands, whether by contract or 18 condemnation, for public purposes through an exercise of the 19 power of eminent domain. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to real estate transfer tax, including 24 declarations of value. 25 A real estate transfer tax is imposed on deeds, instruments, 26 or writings when land, tenements, or other real property are 27 granted, assigned, transferred, or otherwise conveyed, except 28 in certain circumstances specified in Code section 428A.2. 29 When a deed, instrument, or writing conveys real property, a 30 declaration of value must be submitted to the county recorder. 31 Under current law, a declaration of value is not required 32 for certain instruments that are not subject to a real estate 33 transfer tax. The bill expands the categories of instruments 34 exempt from the declaration of value requirement to include the 35 -1- LSB 5748HV (1) 91 lh/jh 1/ 2
H.F. 2188 following: (1) instruments of transfer made or delivered as 1 a result of a corporate or limited liability company merger, 2 consolidation, or reorganization; (2) deeds between a family 3 corporation, partnership, limited liability partnership, or 4 limited liability company and its stockholders, partners, or 5 members for the purpose of transferring real property in an 6 incorporation or corporate dissolution or the organization or 7 dissolution of a partnership, limited partnership, limited 8 liability partnership, or limited liability company, when the 9 deeds are given for no actual consideration other than shares 10 or debt securities of the entity; and (3) deeds transferring 11 distributions of trust assets to beneficiaries when conveyed 12 without consideration. 13 -2- LSB 5748HV (1) 91 lh/jh 2/ 2