To amend the Internal Revenue Code of 1986 to impose an excise tax on the acquisition of single-family homes by certain large investors.
Bill: H.R.8582 | Sponsor: Rep. Smith, Adam (D-WA)
Policy area: Taxation

Summary:
This bill imposes a 100% excise tax on the purchase of a single-family home by a specified large investor (i.e., any person, other than a tax-exempt charitable organization or a governmental entity, with assets having a fair market value exceeding $20 million). The tax does not apply if the home is used as the principal residence of the investor or the sale to the investor is pursuant to a governmental program for providing housing to low-income individuals.

To amend the Internal Revenue Code of 1986 to impose an excise tax on 
   the acquisition of single-family homes by certain large investors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCISE TAX ON ACQUISITIONS OF SINGLE-FAMILY HOMES BY CERTAIN 
              LARGE INVESTORS.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subchapter:

 ``Subchapter E--Acquisition of Single-Family Homes by Large Investors

``Sec. 4491. Tax on acquisition of single-family homes by certain large 
                            investors.

``SEC. 4491. TAX ON ACQUISITION OF SINGLE-FAMILY HOMES BY CERTAIN LARGE 
              INVESTORS.

    ``(a) Tax Imposed.--In the case of the sale of any single-family 
home to a specified large investor, there is hereby imposed a tax equal 
to 100 percent of the amount paid for such home.
    ``(b) By Whom Paid.--The tax imposed under subsection (a) shall be 
paid by the specified large investor.
    ``(c) Single-Family Home.--For purposes of this section, the term 
`single-family home' means any real property located in the United 
States if such property includes at least 1 dwelling unit and not more 
than 2 dwelling units.
    ``(d) Specified Large Investor.--For purposes of this section, the 
term `specified large investor' means any person for any taxable year 
if the aggregate fair market value of all assets of such person 
(reduced by the aggregate debts of the taxpayer) determined as of the 
beginning of such taxable year exceeds $20,000,000. Such term shall not 
include any governmental entity or any organization described in 
section 501(c) and exempt from tax under section 501(a).
    ``(e) Exceptions.--
            ``(1) Principal residence.--In the case of a specified 
        large investor who is an individual, subsection (a) shall not 
        apply to the sale of any single-family home to such specified 
        large investor if such home is used as the principal residence 
        of such investor.
            ``(2) Low-income housing programs.--Subsection (a) shall 
        not apply to the sale of any single-family home to a specified 
        large investor if the acquisition of such home by such investor 
        is pursuant to a governmental program the purpose of which is 
        to provide housing to low-income individuals.
    ``(f) Controlled Groups.--For purposes of subsection (d)--
            ``(1) Corporations.--
                    ``(A) In general.--All persons treated as a 
                controlled group shall be treated as 1 person.
                    ``(B) Controlled group.--The term `controlled 
                group' has the meaning given to such term by subsection 
                (a) of section 1563; except that for such purposes the 
                phrase `more than 50 percent' shall be substituted for 
                the phrase `at least 80 percent' each place it appears 
                in such subsection.
            ``(2) Nonincorporated persons under common control.--Under 
        regulations prescribed by the Secretary, principles similar to 
        the principles of paragraph (1) shall apply to a group of 
        persons under common control where 1 or more of such persons is 
        not a corporation.
    ``(g) Transfer of Revenues to the Housing Trust Fund.--
            ``(1) In general.--There are hereby appropriated to the 
        Housing Trust Fund established under section 1338 of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 amounts equivalent to the taxes received in the 
        Treasury under this section.
            ``(2) Administration of transfers.--Rules similar to the 
        rules of section 9601 shall apply for purposes of this 
        subsection.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
such Code is amended by adding at the end the following new item:

      ``subchapter e. acquisition of single-family homes by large 
                             investors.''.

    (c) Annual Report.--With respect to each calendar year beginning 
after the date of the enactment of this Act, the Secretary of Housing 
and Urban Development shall make publicly available an annual report 
which evaluates the trends in purchases of single-family homes (as 
defined in section 4491(c) of the Internal Revenue Code of 1986) by 
specified large investors (as defined in section 4491(d) of such Code).
    (d) Effective Date.--The amendments made by this section shall 
apply to sales after the date of the enactment of this Act.
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