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S 5620

Exempts from the mortgage recording tax mortgages executed by a veteran first time homebuyer

2025 Regular Session Introduced by Jake Ashby

Exempts veteran first-time homebuyer mortgages from the mortgage recording tax, cutting closing costs for eligible borrowers.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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Bill Summary · S 5620

Summary of S 5620: Exempts from the mortgage recording tax mortgages executed by a veteran first time homebuyer

Overview

S 5620 is a bill introduced on February 26, 2025, that would exempt certain mortgage recording taxes for mortgages taken out by veteran first-time homebuyers. The bill is currently “Referred to Investigations and Government Operations.” The primary sponsor is Senator Jake Ashby. A companion bill exists in the Assembly (A 5487), and S 7638 is listed as a related bill from a prior session.

Purpose and Intent

  • The central goal of the bill is to reduce closing costs for veteran homebuyers by removing the mortgage recording tax on qualifying loans. This aligns with policy aims to support veteran homeownership and expand homebuying opportunities for those who have served in the military.

Key Provisions (as indicated by the bill’s title)

  • Exemption from the mortgage recording tax for mortgages executed by veteran first-time homebuyers.
  • Eligibility criteria, definitions, and any limitations would be specified in the full text of the bill (not provided here). Typically, such provisions would address:
    • Veteran status verification (e.g., service record requirements).
    • First-time homebuyer status (no prior ownership of a principal residence).
    • Primary residence requirement (ownership intended for the home as a primary residence).
    • Any monetary caps or limits on applicable loans.
  • The exemption would apply to the act of recording the mortgage, thereby reducing or eliminating the tax due at closing for qualifying loans.

Who is Affected

  • Primary beneficiaries: veteran first-time homebuyers who obtain a mortgage for a qualifying primary residence.
  • Other impacted stakeholders may include mortgage lenders, title/settlement service providers, and recording offices, which would see changes in tax collection procedures for eligible transactions.
  • State or local revenue authorities would be affected financially to the extent the exemption reduces mortgage recording tax collections.

Procedural and Timeline Aspects

  • Introduced: February 26, 2025.
  • Status: Referred to Investigations and Government Operations (no further action dates provided in the summary).
  • Related legislative activity:
    • S 7638 (prior-session) referenced as related.
    • A 5487 (companion in the Assembly) referenced; appears in both chambers as a parallel effort.

Fiscal and Administrative Implications

  • Fiscal impact: The exemption would reduce mortgage recording tax revenue for the government, with the magnitude depending on how many qualifying transactions occur. The bill’s fiscal note (not provided here) would detail expected revenue effects.
  • Administrative considerations: The bill would require clear criteria and documentation to verify veteran status and first-time homebuyer status at the time of mortgage recording.

Related Legislation

  • S 7638 (prior-session): Related Senate measure.
  • A 5487 (companion): Assembly counterpart, suggesting parallel consideration in the other chamber.

Next Steps for Readers

  • Monitor committee hearings and amendments in Investigations and Government Operations.
  • Review the full text for precise eligibility criteria, definitions, and any caps or sunset provisions.
  • Compare with the companion Assembly bill (A 5487) and prior-session S 7638 to understand broader legislative alignment.

Compiled from official sources — confirm details with the bill’s official record.

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