Transfer of interest to secure debt

From the 2024 DOR Tax Exemption Study

82.45.010(3)(i) - Transfer of interest to secure debt Description Transfers of interest in real property by acquiring a second mortgage or the sale of a mortgage is not subject to state or local real estate excise tax. Purpose Transferring the interest in 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 $0.024 $0.027 $0.030 $0.037 Local Taxes $0.011 $0.013 $0.014 $0.018 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.024 $0.030 $0.037 Local Taxes $0.000 $0.011 $0.014 $0.018 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. Only seven counties reported these transactions so there is no estimated impact for the three c