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Bill Summary · SB 1033

Summary of SB 1033 - Relating to Taxation

Bill Number: SB 1033
Introduced On: January 17, 2025
Current Status: Pass First Reading
Classification: Bill
Subject Areas: Excise Tax, Failure to Sell Excess Single-Family Residences, Housing Downpayment Trust Fund, Reports

Purpose and Intent

SB 1033 aims to address issues related to taxation, specifically focusing on the excise tax associated with the failure to sell excess single-family residences. The bill seeks to enhance the Housing Downpayment Trust Fund and improve reporting mechanisms related to these taxes. The intent is to promote housing accessibility and affordability by ensuring that properties that are not being utilized effectively contribute to the housing market.

Key Provisions

  • Excise Tax Implementation: The bill proposes the introduction of an excise tax on owners of single-family residences that remain unsold for an extended period. This measure is intended to encourage property owners to either sell or rent their properties, thereby increasing housing availability.

  • Housing Downpayment Trust Fund: SB 1033 aims to bolster the Housing Downpayment Trust Fund, which provides financial assistance to first-time homebuyers. The additional revenue generated from the excise tax is expected to support this fund, making homeownership more attainable for residents.

  • Reporting Requirements: The bill establishes new reporting requirements for property owners regarding the status of their single-family residences. This will help the state monitor housing availability and the effectiveness of the excise tax.

Affected Parties

  • Property Owners: Owners of single-family residences who do not sell their properties within a specified timeframe will be directly impacted by the new excise tax.

  • Homebuyers: First-time homebuyers may benefit from increased funding in the Housing Downpayment Trust Fund, potentially making it easier for them to purchase homes.

  • State Housing Authorities: The bill will require state housing authorities to implement and oversee the new tax and reporting mechanisms, impacting their operational processes.

Procedural Timeline

  • January 17, 2025: Bill introduced.
  • January 21, 2025: Passed First Reading.
  • January 23, 2025: Referred to the House Committee on Housing (HOU) and the Committees on Ways and Means (WAM) and Judiciary and Government (JDC).
  • February 4, 2025: HOU recommended the bill pass with amendments.
  • February 12, 2025: Passed Second Reading with amendments and referred to WAM/JDC.
  • February 26, 2025: WAM/JDC recommended the bill pass with amendments.
  • March 4, 2025: Passed Third Reading in the Senate as amended and transmitted to the House.
  • March 6, 2025: Referred to HSG and FIN committees in the House.

Conclusion

SB 1033 represents a significant legislative effort to address housing challenges through taxation and funding mechanisms. By imposing an excise tax on unsold single-family residences and enhancing the Housing Downpayment Trust Fund, the bill aims to promote better utilization of housing resources and support first-time homebuyers in the state. The ongoing legislative process will determine the final form and impact of this bill.

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

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