H.R. 3745

119th CONGRESS 1st Session

To prohibit individuals and entities from owning more than 75 single-family residences, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · June 5, 2025 · Sponsor: Ms. Adams

Table of contents

• H.R. 3745
  • Sec. 5000E. Excess single-family residences.

Sec. 5000E. Excess single-family residences.

• (a) In general
  • There is hereby imposed on each covered taxpayer for each taxable year a tax in an amount equal to the product of—
    • $10,000, and
    • the excess of—
      • the number of single-family residences owned by the taxpayer as of the last day of the taxable year, over
• (b) Covered taxpayer
  • For purposes of this section—
  • (1) In general
    • The term means a taxpayer that is not— covered taxpayer
      • a mortgage note holder that owns a single-family residence through foreclosure,
      • a organization which is described in subsection 501(c)(3) and exempt from tax under section 501(a),
      • a person primarily engaged in the construction or rehabilitation of single-family residences, or
      • a person who owns federally subsidized housing.
  • (2) Aggregation rules
    • (A) In general
      • For purposes of this section, all persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer.
    • (B) Modifications
      • For purposes of this paragraph—
        • (i) section 52(a) shall be applied by substituting for , and component members``
        • (ii) for purposes of applying subsection (b), the term shall include any activity treated as a trade or business under paragraph (5) or (6) of subsection (c) (determined without regard to the phrase in such paragraph (6)). to the extent provided in regulations
    • (C) Component member
      • For purposes of this paragraph, the term has the meaning given such term by section 1563(b), except that the determination shall be made without regard to subsection (b)(2). component member
• (c) Other rules and definitions
  • For purposes of this section:
    • The term means a residential property consisting not more than 4 dwelling units. single-family residence
• (d) Reporting
  • (1) In general
    • The Secretary shall require such reporting as the Secretary determines necessary or appropriate to carry out the purposes of this section, including requiring a certification of the following from each purchaser or transferee of a single-family residence:
      • The name and address of the purchaser or transferee.
      • Identify whether the sale is a sale described in subsection (c)(2)(B)(ii) of the Internal Revenue Code 1986.
  • (2) Failure to report
    • (A) In general
      • Any person who fails to report information required under paragraph (1) or who fails to include correct information in such report shall pay a penalty of $50,000.
    • (B) Reasonable cause waiver
      • No penalty shall be imposed under this paragraph with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
    • (C) Treatment of penalty
      • The penalty under this paragraph shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as an assessable penalty under subchapter B of chapter 68.