Senate File 436 - Introduced SENATE FILE 436 BY WEINER , DONAHUE , DOTZLER , WINCKLER , CELSI , STAED , TOWNSEND , PETERSEN , and QUIRMBACH A BILL FOR An Act removing the maximum annual amount of real estate 1 transfer tax receipts that may be transferred into the 2 housing trust fund. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1263XS (2) 91 jm/md
S.F. 436 Section 1. Section 428A.8, subsection 2, Code 2025, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 2. For the fiscal year beginning July 1, 2025, and each 4 succeeding fiscal year, of the receipts remitted to the 5 department of revenue under subsection 1, sixty-five percent 6 of the receipts shall be deposited in the general fund, thirty 7 percent of the receipts shall be transferred to the housing 8 trust fund created in section 16.181, and five percent of the 9 receipts shall be transferred to the shelter assistance fund 10 created in section 16.41. 11 Sec. 2. Section 428A.8, subsection 3, Code 2025, is amended 12 by striking the subsection. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanations substance by the members of the general assembly. 16 The housing trust fund (HTF) was established for the 17 development and preservation of affordable housing for 18 low-income people in the state and for the Iowa mortgage help 19 initiative. 20 Each month county recorders remit 82.75 percent of the 21 real estate transfer tax (RETT) receipts to the department 22 of revenue (DOR), and deposit the remaining 17.25 percent of 23 the RETT receipts in the county general fund. Of the RETT 24 receipts transferred to DOR, DOR transfers 65 percent to the 25 state general fund, 30 percent to the HTF, and 5 percent to the 26 shelter assistance fund. Currently, DOR may deposit a maximum 27 of $7 million of RETT receipts into the HTF per year. Any 28 amounts in excess of $7 million are deposited into the state 29 general fund. 30 This bill removes the $7 million annual maximum that may be 31 deposited into the HTF. 32 The bill also strikes outdated phase-in language in Code 33 section 428A.8(2). 34 -1- LSB 1263XS (2) 91 jm/md 1/ 1