Imposes a conveyance tax on purchasers, of single-family residential properties, who are for- profit entities with over $15,000,000 in assets, at a rate of $6.90/$500, to be collected for housing production fund established in ยง 42-128-2.1.
If enacted, HB 7683 would bring significant changes to the taxation of real estate transactions involving high-value for-profit entities. The increased tax burden on these companies may dissuade excessive investment in single-family residential properties, potentially impacting the market dynamics for housing. The revenue generated from this tax will be earmarked specifically for the Housing Production Fund, providing a dedicated source of financing for addressing housing needs across the state and potentially stimulating related economic development.
House Bill 7683 introduces a new real estate conveyance tax specifically targeting for-profit entities with substantial assets. The bill stipulates a tax rate of six dollars and ninety cents ($6.90) for every five hundred dollars ($500) of the consideration paid when purchasing single-family homes. This measure aims to increase funding for the Housing Production Fund, which is dedicated to addressing housing shortages and enhancing affordability in the state.
While the bill aims to promote affordable housing, there may be points of contention among legislators and stakeholders. Critics may argue that additional taxes on for-profit entities could lead to higher housing costs as these companies pass on expenses to consumers. Moreover, there could be concerns related to enforcing the tax and ensuring that the funds are effectively allocated to the intended housing initiatives. The debate around the bill may focus on balancing the need for revenue generation against the potential risks of limiting housing supply or increasing costs for homebuyers.