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Committee clears technical changes to realty transfer tax to expand 'spouses' language and allow direct grandparent-to-grandchild conveyances
Summary
House Bill 283 would update wording in the realty transfer tax code—changing 'husband and wife' to 'spouses'—and simplify transfers from grandparents to grandchildren by removing a required intermediate transfer through a parent. The committee released the bill after a brief question session.
Representative Pensley presented House Bill 283 to the House Revenue and Finance Committee, saying the bill makes two limited changes to the realty transfer tax code: replace the phrase "husband and wife" with the gender-neutral term "spouses," and allow a grandparent to convey property directly to a grandchild without an intermediate transfer to a parent.
Pensley said the change is intended to clarify existing exemptions and reduce unnecessary transactions rather than create new exemptions. "We're not exempting anything that's not already exempt today," Pensley said, explaining the measure shortens a common three-step process to two steps where appropriate.
Representative Gray asked whether the bill eliminates the transfer tax in cases that were not previously exempt. Pensley replied that current exemptions remain in place and the bill merely provides clarity in statutory language to reflect different marital classifications and to address practical situations where an intermediary parent may not be available.
The committee moved to release HB 283. Vice Chair Carson moved to release the bill and Representative Kay Smith seconded; the chair called the roll and the motion carried. Committee members commented that simplifying the statute would reduce administrative burden and make existing practice clearer.
Next steps: HB 283 was released from committee and will proceed to the next legislative steps for floor consideration.
