Transfer of vendor's interest

From the 2024 DOR Tax Exemption Study

82.45.010(3)(g) - Transfer of vendor's interest Description Transferring the mortgage interest in a real property to a new mortgage vendor is not subject to state or local real estate excise tax. Purpose Transferring the mortgage of a 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 $0.346 $0.402 $0.435 $0.520 Local Taxes $0.161 $0.182 $0.205 $0.248 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.360 $0.435 $0.520 Local Taxes $0.000 $0.164 $0.205 $0.248 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 the urb