Recording Fee Legislation Awaits Vote on Senate Floor
Tuesday, June 20, 2017
Senate Bill 2 (Atkins), which would fund affordable housing through a substantial increase in recording fees, is currently on the Senate floor and could be voted on at any time. Senate BIll 2 would impose a fee of $75.00 on the recording of each real estate document, except those documents involved in a transfer or sale of real property. Fee revenues would be available for expenditure for affordable housing purposes, upon appropriation by the Legislature.
The fee is capped at $225.00 per transaction, but would nevertheless result in significant increases in recording fees paid on refinances and other transactions which require the recordation of documents. In addition to a potential chilling effect on refinances, the bill would further exacerbate the title industry's struggle to accurately calculate recording fees as required under TRID.
CLTA is aggressively opposing the bill and has formed a coalition of anti-tax groups and other associations that oppose the significant recording fee increases. CLTA will continue to oppose the bill in its current form; a copy of the current letter expressing the coalition's opposition is available here.
Politically, the bill faces a rather strong head-wind given the significant fallout some Democratic members are facing as a result of the passage of SB 1, a controversial gas tax increase that has intensified efforts to initiate a recall vote for one Democratic senator that voted for the bill.