Amendments to the tax code

(a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 50B Real property-related taxes Sec. 5000E–1. Luxury real property transfers. Sec. 5000E–2. Real property secrecy transfer tax. Sec. 5000E–3. Mass landlord rental tax. 5000E–1. Luxury real property transfers (a) In general There is hereby imposed on the sale or exchange of real property a tax equal to 5 percent of the amount realized from such sale or exchange. (b) Limitation The tax imposed by this section shall not apply to a sale or exchange of property unless the amount realized from such sale or exchange (or from a series of related sales or exchanges of which such property is a part) is at least $10,000,000. (c) Liability for tax (1) In general The tax imposed by this section shall be paid ½ by the transferor and ½ by the transferee. (2) Exceptions (A) Property transferred to tax-exempt In the case of property transferred to a tax exempt entity, or a State or local government (or political subdivision thereof), the tax imposed by this section shall be zero. (B) Property transferred by tax-exempt In the case of property transferred by a tax-exempt entity, or a State or local government (or political subdivision thereof), the tax imposed by this section shall be paid by the transferee. (C) Tax exempt entity For purposes of this section, the term tax-exempt entity means any organization which is exempt from the tax imposed by this chapter unless such property is used predominantly in an unrelated trade or business the income of which is subject to tax under section 511. (d) Regulations The Secretary shall prescribe such rules as may be necessary or appropriate to prevent avoidance of the purposes of this section. 5000E–2. Real property secrecy transfer tax (a) In general In the case of a sale or exchange of real property to or from an applicable anonymous entity, there is hereby imposed on such transfer a tax equal to $10 for each $100 realized on such sale or exchange. (b) Applicable anonymous taxpayer (1) In general For purposes of this section, the term applicable anonymous entity means any entity or trust the beneficial owners of which are not available by freely accessible public records. (2) Beneficial owner The term beneficial owner means, with respect to any entity, an individual who has any ownership interest in the entity and— (A) exercises control over the entity, (B) owns equity interest in such entity, or (C) receives substantial economic benefits from such entity (other than in connection with employment). (3) Special rule for entities registered in global legal identifier program (A) In general Paragraph (1) shall not apply to any entity that participates in the legal entity identifier program. (B) Controlled groups In the case of any persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, subparagraph (A) shall only apply if each such person so treated participates in the legal entity identifier program. (c) Liability for tax (1) In general Each applicable anonymous entity who transfers or receives property in a sale or exchange to which this section applies shall be jointly and severally liable for payment of the tax imposed by this section. (2) Members of controlled group If such an applicable anonymous entity is a member of a controlled group, each member of such controlled group shall be jointly and severally liable for such payment. 5000E–3. Mass landlord rental tax (a) In general In the case of a covered landlord, there is hereby imposed on the rental of a dwelling unit a tax equal to 1 percent of the amount of the rent paid for such dwelling unit. (b) Covered landlord For purposes of this section, the term covered landlord means any person that owns— (1) more than 1,000 dwelling units held for rent within a single metropolitan statistical area, (2) more than 2,000 dwelling units held for rent, or (3) at least 500 dwelling units held for rent in at least 3 different States. (c) Exceptions (1) In general Subsection (a) shall not apply to any dwelling unit subject to a rent control, just cause, or source of income discrimination law. (2) Rent control law For purposes of this subsection— (A) In general The term rent control law means any State or local law which restricts the amount by which a lessor may increase rental payments for a dwelling unit and allows an affirmative defense to eviction or private right of enforcement. (B) Minimum amount level of rent control A law shall not be treated as a rent control law with respect to any dwelling unit for purposes of this paragraph unless the lessor of such dwelling unit may not, when the lease with respect to such unit expires, increase monthly rent by an amount greater than the percentage increase, if any, over the preceding 12 months in the Consumer Price Index for All Urban Consumers or 3 percent of the average monthly amount paid for the same unit for each month that the unit was occupied during the previous 12-month period, whichever is greater. (3) Just cause law The term just cause law means any State or local law which at least restricts a lessor from evicting lessee by limiting evictions to instances in which— (A) the tenant has— (i) failed to pay rent for 2 or more consecutive months despite clear and timely notice, (ii) caused substantial destruction to the rental property, (iii) caused significant danger to other tenants, or (iv) significantly and repeatedly violated an explicit lease term and failed to cure the violation after being given notice requesting that the lease term violation be cured, or (B) the landlord seeks to occupy the unit for use as a primary residence, or seeks the availability of the unit for occupancy by an immediate relative as a primary residence. (4) Source of income discrimination law (A) In general The term source of income discrimination law means a State or local law which places restrictions on a lessor from rejecting lessee applicants, or to evicting an existing lessee, due to the lessee’s source of income. (B) Source of income For purposes of subparagraph (A), source of income includes the following: (i) A housing voucher under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) and any form of Federal, State, or local housing assistance provided to a family or provided to a housing owner on behalf of a family, including rental vouchers, rental assistance, and rental subsidies from nongovernmental organizations. (ii) Any income received during a taxable year as Social Security benefits, as defined in section 86(d) of the Internal Revenue Code of 1986, or as supplemental security income benefits under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.). (iii) Any income received by court order, including spousal support and child support. (iv) Any payment from a trust, guardian, or conservator. (v) Any other lawful source of income. (d) Aggregation rules All persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one person for purposes of applying subsection (b).. (b) Effective date The amendment made by this section shall apply to sales and exchanges after December 31, 2025.