Real Estate Transfer Tax For Affordable Housing

The concurrent resolution deletes the prohibition in the state constitution on new or increased transfer tax rates on real property.

The concurrent resolution imposes a tax upon the recording of each real property deed at the rate of 1/10 of one percent of the value of the real property as specified in the deed for the privilege of transferring the title to real property (tax). A conveyance from one spouse or other marital partner to another or a correction deed are exempt from payment of the tax.

At the time any deed evidencing a transfer of title subject to the tax imposed is offered for recording, the county clerk and recorder is required to ascertain and compute the amount of the tax due and to collect the same from the purchaser of the real property as a prerequisite to acceptance of the deed for recording. The amount of tax is computed on the basis of the value of the transferred property as specified in the deed.

The county clerk and recorder is required to collect the amount due under the tax and certify the date of payment and the amount collected on the deed. The county clerk and recorder is authorized to retain 5% of the amount collected as his or her fee for collection and to further remit the balance on a quarterly basis to the county treasurer. The county treasurer is then required to transmit the same to the state treasurer for the deposit of such money into the already existing state housing investment trust fund (fund).

Under existing legal requirements not changed by the concurrent resolution, the fund is administered by the division of housing within the department of local affairs (division). In addition to the permissible uses of money deposited into the fund under existing statutory requirements, the concurrent resolution specifies that permissible uses of the money collected from the imposition of the tax that are deposited into the fund pursuant to the resolution include the uses specified in the resolution. The concurrent resolution specifies the type of new or existing programs that must be supported with money collected by the tax.

The concurrent resolution requires that any new or existing programs supported by the tax are to be administered by the division.

The concurrent resolution contains additional requirements governing the use of money in the fund.

The concurrent resolution specifies that its approval by the registered electors of the state voting on the ballot issue at the general election held in November 2017 constitutes a voter-approved revenue change to allow the retention and expenditure of state revenues in excess of the limitation on state fiscal year spending.

The general assembly may modify any of the provisions as necessary in order to facilitate a more effective administration of the provisions. However, such legislation shall not limit or restrict the imposition of the tax or the use of the money raised by the tax to promote the provision of affordable housing.
(Note: This summary applies to this concurrent resolution as introduced.)