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IA SF436
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.
summary
Introduced
02/25/2025
02/25/2025
In Committee
02/25/2025
02/25/2025
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 The bill also strikes outdated phase-in language in Code section 428A.8(2).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 was established to support affordable housing development for low-income people in Iowa. Currently, when county recorders collect RETT, 82.75% of the receipts are remitted to the department of revenue (DOR), with DOR then allocating 65% to the state general fund, 30% to the HTF, and 5% to the shelter assistance fund. The existing law limited HTF deposits to $7 million annually, with any excess transferred to the state general fund. By eliminating this maximum, the bill ensures that the full 30% of RETT receipts can be transferred to the HTF each fiscal year, potentially increasing funding for affordable housing initiatives. The bill also removes outdated phase-in language in the relevant code section, streamlining the legal text to reflect the current funding allocation method.
Committee Categories
Budget and Finance
Sponsors (9)
Claire Celsi (D)*,
Molly Donahue (D)*,
Bill Dotzler (D)*,
Janet Petersen (D)*,
Herman Quirmbach (D)*,
Art Staed (D)*,
Thomas Townsend (D)*,
Janice Weiner (D)*,
Cindy Winckler (D)*,
Last Action
Senate Ways and Means Subcommittee (12:30:00 3/17/2025 Room 217 Conference Room) (on 03/17/2025)
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=SF436 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF436.html |
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