Residential and recreational developments

From the 2024 DOR Tax Exemption Study

82.29A.136 - Residential and recreational developments Description All leasehold interests comprised of 3,000 or more residential and recreational lots that are, or may be, subleased for residential or recreational purposes, are exempt from leasehold excise tax and subject instead to property taxes. Purpose To treat certain residential and recreational lots in a similar manner as other housing property. Lessees also avoid a processing fee, and the properties are governed by the various limits on property tax levies. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes CTI CTI CTI CTI Repeal of Repealing this exemption would increase revenues for the leasehold tax. However, exemption property taxes currently paid would decrease, which could shift the state and local property taxes to other taxpayers in the form of higher levy rates. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 CTI CTI CTI Assumptions This exemption impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Leasehold tax data Add