Substitute House Bill No. 5979 proposes to exempt public housing authorities from the real estate conveyance tax and the controlling interest transfer tax. The bill introduces new legal language stating that deeds made to a public housing authority will not be subject to these taxes, and it modifies existing statutes by repealing certain sections and substituting them with updated provisions that include this exemption. The effective date for these changes is set for July 1, 2025, applying to all relevant transactions occurring on or after that date.

In terms of legal modifications, the bill deletes the phrase "said" in reference to tax exemptions for corporations and replaces it with "any subsequent corresponding internal revenue code of the United States." It also adds new exemptions, including those for deeds made between spouses and the specified exemption for public housing authorities. The legislation is expected to result in a General Fund revenue loss of approximately $2.2 million annually starting in fiscal year 2026, along with additional revenue losses for municipalities due to the exemptions. Overall, the bill aims to alleviate financial burdens on public housing authorities by exempting them from these taxes.

Statutes affected:
Committee Bill: 12-498, 12-638b
FIN Joint Favorable: 12-498, 12-638b
File No. 855: 12-498, 12-638b