SSB 3019 (LSB 5748XC (1) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act relating to real estate transfer tax, including declarations of value.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 428A.1, subsection 2, Code 2026, is amended to read as follows:
   2.  When each deed, instrument, or writing by which any real property in this state is granted, assigned, transferred, or otherwise conveyed is presented for recording to the county recorder, a declaration of value signed by at least one of the sellers or one of the buyers or their agents shall be submitted to the county recorder. However, if the deed, instrument, or writing contains multiple parcels some of which are located in more than one county, separate declarations of value shall be submitted on the parcels located in each county and submitted to the county recorder of that county when paying the tax as provided in section 428A.5. A declaration of value is not required for those instruments described in section 428A.2, subsections 2 through 5, and 7 through 13, and 16 through 21 22, or described in section 428A.2, subsection 6, except in the case of a federal agency or instrumentality, or if a transfer is the result of acquisition of lands, whether by contract or condemnation, for public purposes through an exercise of the power of eminent domain.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to real estate transfer tax, including declarations of value.
   A real estate transfer tax is imposed on deeds, instruments, or writings when land, tenements, or other real property are granted, assigned, transferred, or otherwise conveyed, except in certain circumstances specified in Code section 428A.2. When a deed, instrument, or writing conveys real property, a declaration of value must be submitted to the county recorder.
   Under current law, a declaration of value is not required for certain instruments that are not subject to a real estate transfer tax. The bill expands the categories of instruments exempt from the declaration of value requirement to include the following: (1) instruments of transfer made or delivered as a result of a corporate or limited liability company merger, consolidation, or reorganization; (2) deeds between a family corporation, partnership, limited liability partnership, or limited liability company and its stockholders, partners, or members for the purpose of transferring real property in an incorporation or corporate dissolution or the organization or dissolution of a partnership, limited partnership, limited liability partnership, or limited liability company, when the deeds are given for no actual consideration other than shares or debt securities of the entity; and (3) deeds transferring distributions of trust assets to beneficiaries when conveyed without consideration.