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Bill > HF171
IA HF171
IA HF171A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.
summary
Introduced
01/30/2025
01/30/2025
In Committee
01/30/2025
01/30/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
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 in excess of $7 million are deposited into the state general fund. This bill removes the $7 million annual maximum that may be deposited into the HTF. The bill also strikes outdated phase-in language in Code section 428A.8(2).
AI Summary
This bill removes the $7 million annual cap on real estate transfer tax (RETT) receipts that can be deposited into the housing trust fund (HTF), which supports affordable housing development for low-income people in Iowa. Currently, when county recorders collect RETT, 82.75% of these receipts are sent to the department of revenue (DOR), with the remaining 17.25% staying in the county general fund. Of the amount sent to DOR, 65% goes to the state general fund, 30% to the HTF, and 5% to the shelter assistance fund. Previously, any RETT receipts exceeding $7 million annually were deposited into the state general fund. This bill eliminates that maximum limit, allowing more funds to potentially flow into the housing trust fund. Additionally, the bill strikes outdated phase-in language in the existing law, ensuring that the new funding distribution applies consistently from the fiscal year beginning July 1, 2025, onward. By removing the annual cap, the bill could increase financial resources available for affordable housing initiatives in Iowa.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Subcommittee recommends passage. (on 03/12/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF171 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF171.html |
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