Forfeiture of interest in sale of real property

From the 2024 DOR Tax Exemption Study

82.45.010(3)(d) - Forfeiture of interest in sale of real property Description Transfers of real property because of debt proceedings such as a foreclosure are not subject to state or local real estate excise tax. Purpose Transferring debt on real property is not a sale. REET taxes arm's-length purchases of real estate in situations where the purchase price reflects the market price. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.100 $0.200 $0.170 $0.210 Local Taxes $0.100 $0.100 $0.100 $0.100 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.140 $0.170 $0.210 Local Taxes $0.000 $0.100 $0.100 $0.100 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the REET growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The department electronically receives transaction-level REET data from 36 counties. For the three counties not reporting REET data electronically, this estimate assumes transactions similar to