HB2762 - 481R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-381, Arizona Revised Statutes, is amended to read:

START_STATUTE11-381. County housing trust fund; board; purpose; administration

A. A county board of supervisors, by resolution, may establish a county housing trust fund for the purposes prescribed in this section that is administered by a housing trust fund board comprised of five members appointed by the board of supervisors, or the board of supervisors acting as the housing trust fund board.

B. The fund shall consist of:

1. Revenues of a real estate transfer tax collected pursuant to section 11-1132.01.

1. 2. Monies appropriated by a county board of supervisors to the fund.

2. 3. Any private, federal, state or local government grants, gifts, appropriations and monies designated by law for deposit in the fund.

3. 4. Investment earnings of the fund.

C. On recommendation of the housing trust fund board and approval of the board of supervisors, fund monies shall be used for projects and programs that provide affordable housing opportunities for low income households as determined by the United States department of housing and urban development. Eligible projects and programs include development of affordable rental housing, property developed for sale to low income buyers and rent-to-own programs.

D. In recommending and approving the expenditure of monies from the fund, the housing trust fund board and the board of supervisors shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low income families and that provide housing and shelter to families that have children.

E. The housing trust fund board shall report twice each year to the board of supervisors on the status of the housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year, showing the cost of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall be submitted to the board of supervisors by September 1 and April 1 of each year.

F. Monies in the housing trust fund shall be accounted for separately from other monies of the county. END_STATUTE

Sec. 2. Heading change

The article heading of title 11, chapter 8, article 2, Arizona Revised Statutes, is changed from "REAL ESTATE TRANSFER AFFIDAVIT AND FEE" to "REAL ESTATE TRANSFER AFFIDAVITS, FEES AND TAXES".

Sec. 3. Section 11-1132, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1132. Real estate transfer fee

A. Before recording a deed or contract relating to the sale or transfer of real property, the county recorder shall collect a fee of two dollars for the deed or contract, in addition to the fee collected pursuant to section 11-475 and a real estate transfer tax collected pursuant to section 11-1132.01.

B. The county shall retain all monies collected pursuant to this section in the same manner as monies collected under section 11-475. END_STATUTE

Sec. 4. Title 11, chapter 8, article 2, Arizona Revised Statutes, is amended by adding section 11-1132.01, to read:

START_STATUTE11-1132.01. County real estate transfer tax

A. In a county with a population of at least eight hundred thousand but less than three million persons, the board of supervisors by a majority vote may levy and, if levied, the county recorder shall collect a tax on the transfer of title to real property measured by the value of the property determined for the purposes of this article. The board shall determine the rate of the tax, which shall not exceed one-tenth of one per cent of the value of the transferred property. The tax shall become effective on either January 1 or July 1, whichever date first occurs at least ninety days after the board's resolution to levy the tax. The tax is in addition to the recording fee collected pursuant to section 11-475 and the real estate transfer fee collected pursuant to section 11-1132.

B. the tax shall apply only to the transfer of title to commercial, owner-occupied residential and residential rental properties that are classified as class one, three or four for purposes of property tax pursuant to sections 42-12001, 42-12003 and 42-12004. The tax does not apply to transfers of title that are exempt pursuant to section 11-1134.

C. The tax shall be paid to and collected by the county recorder at the same time and in the same manner as the real estate transfer fee collected pursuant to section 11-1132. The recorder shall transmit all real estate transfer tax revenues to the county treasurer for deposit in the county housing trust fund established pursuant to section 11-381 to be used, subject to appropriation by the board of supervisors, exclusively for the purposes described in section 11-381, subsection C. END_STATUTE

Sec. 5. Section 11-1134, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1134. Exemptions

A. The affidavit, and real estate transfer fee and real estate transfer tax required by this article do not apply to the following instruments:

1. A deed that represents the payment in full or forfeiture of a recorded contract for the sale of real property.

2. A lease or easement on real property, regardless of the length of the term.

3. A deed, patent or contract for the sale or transfer of real property in which an agency or representative of the United States, this state, a county, city or town of this state or any political subdivision of this state is the named grantor, and authorized seller, or purchaser.

4. A quitclaim deed to quiet title as described in section 12‑1103, subsection B.

5. A conveyance of real property that is executed pursuant to a court order.

6. A deed to an unpatented mining claim.

7. A deed of gift.

B. The affidavit, and real estate transfer fee and real estate transfer tax required by this article do not apply to a transfer of title:

1. Solely in order to provide or release security for a debt or obligation, including a trustee's deed pursuant to power of sale under a deed of trust.

2. That confirms or corrects a deed that was previously recorded.

3. Between husband and wife, or parent and child, with only nominal actual consideration for the transfer.

4. On a sale for delinquent taxes or assessments.

5. On partition.

6. Pursuant to a merger of corporations.

7. By a subsidiary corporation to its parent corporation for no consideration or nominal consideration or in sole consideration for canceling or surrendering the subsidiary's stock.

8. From a person to a trustee or from a trustee to a trust beneficiary with only nominal actual consideration for the transfer.

9. To and from an intermediary for the purpose of creating a joint tenancy estate or some other form of ownership.

10. From a husband and wife or one of them to both husband and wife to create an estate in community property with right of survivorship.

11. From two or more persons to themselves to create an estate in joint tenancy with right of survivorship.

12. Pursuant to a beneficiary deed with only nominal actual consideration for the transfer.

C. Any instrument that describes a transaction that is exempt under this section shall note the exemption on the face of the instrument at the time of recording, indicating the specific exemption that is claimed. END_STATUTE

Sec. 6. Section 11-1137, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1137. Violations; classification

A. A county recorder or employee of the recorder who knowingly records any deed or contract for which a real estate transfer fee and real estate transfer tax is charged by this article without collecting the additional fee or tax is guilty of a class 2 misdemeanor.

B. Any person who knowingly fails to provide or knowingly falsifies the information that is required by this article on the affidavit of legal value is guilty of a class 2 misdemeanor. END_STATUTE