HB2287 - 452R - House Bill Summary

House of Representatives

HB 2287

mobile homes: property tax assessment

Sponsors: Reps. Carruthers, Cannell, Sen. Guenther, et al

X	Committee on Ways and Means
	Committee on Retirement and Government Operations
	Caucus and COW
	Third Read
	As Passed the House

Under HB 2287, mobile and manufactured homes will be treated similar to permanently built homes for property taxation purposes. The bill removes the titling of mobile homes from MVD and transfers those duties to DOR and the counties.

History

Currently, mobile and manufactured homes that can be moved are treated like vehicles for titling purposes. Current statute for the sale or transfer of a mobile or manufactured home is the same as other vehicles and these homes currently pay personal property taxes. Personal property is taxed at the same rate as real property. However, personal property is paid and collected on a different cycle than real property. MVD requires a one-time $7.00 fee for the titling of these homes and keeps a register of these with pertinent information. Under HB 2287, these duties are transferred to DOR.

Consequently, since the bill would require mobile and manufactured homes to no longer be treated as vehicles, they will be recorded like real property. The home will either be affixed to real property and valued and taxed like real property, or continue to be taxed as personal property. The bill outlines procedures for the sale, transfer of title or movement of these homes. The bill does not apply to recreational vehicles or mobile homes that are temporarily in this state less than six months.

A fiscal impact has not been determined. The bill will cause a minimal revenue decrease to the state general fund from the elimination of the $7.00 title fee to MVD. The counties and DOR may experience increased costs.

Provisions

Motor Vehicle Division (MVD)

· Eliminates the requirement for MVD to issue a certificate of title for a mobile home and eliminates the $7.00 fee for the title registration. Related statutes regarding MVD’s responsibility for titling a mobile home are also eliminated.

· MVD would still issue oversize permits for the movement of any mobile homes; however, these permits could only be issued if the applicant provides evidence of payment of all property taxes or a clearance from the county assessor.

· Repeals statutes related to the list that MVD keeps on mobile homes that have delinquent property taxes and mobile homes that are exempt from the MVD fees.

County Recorders

· Allows county recorders to collect a transfer fee for the transfer or sale of a mobile home or a manufactured home.

· Requires that each deed relating to the sale of a mobile or manufactured home have attached to it an affidavit of legal value that contains the same information as required for real property. In addition, the affidavit must include the manufacturer, model, serial number, model year and length and width of each section of the mobile or manufactured home.

· The affidavit and fee are not required if the title transfer is from a person to a dealer of mobile or manufactured homes.

County Assessors/Treasurers

· Defines mobile homes, manufactured homes and residents for purposes of property taxation. A mobile or manufactured home, when in the traveling mode, is eight body feet or more wide, forty body feet or more in length and when erected on a site, must be at least 320 square feet. A mobile or manufactured home is not a self-propelled recreational vehicle.

· Requires each mobile or manufactured home that is not affixed to real property to be subject to a property tax that will be assessed and collected in the same manner as personal property. A mobile or manufactured home that has been permanently affixed will be treated as real property.

· County assessors shall treat mobile or manufactured homes as new construction if they have not been previously been listed on the tax roll.

· The county treasurer may extend the due date for paying property taxes if a person purchases a mobile or manufactured home that has property taxes due under a previous owner. The county treasurer may extend the due date twice, but not to exceed two years from the original application for extension. If the home is sold when the extension is in place, all taxes are payable immediately.

Department of Revenue (DOR) – Property Division

· Requires DOR to establish valuation methods for mobile and manufactured homes to be used by the county assessors.

· Requires DOR to establish and maintain an electronic statewide database of all mobile and manufactured homes. Counties will share the cost of the database. The database must include the description, location, ownership, history, price paid, taxes levied and other data necessary for the appraisal and assessment of the home. ADOT is required to transfer to DOR all information they currently have on mobile and manufactured homes to be used in DOR’s database.

· Non-program counties (counties that do not subscribe to DOR’s computer services for property tax purposes) must provide data transfers to DOR on a regular schedule (90 days or less).

Mobile or Manufactured Home Owners/Landowners

· Persons that have mobile or manufactured homes placed on their land must keep a register of these homes and submit the register each month to the county assessor. DOR will prescribe a form for the monthly register and the county assessor will distribute the form. If a person knowingly fails to submit the form within 10 days after the end of the month, the person is guilty of a class 2 misdemeanor (up to 4 months in jail/up to $750 fine for persons or $10,000 fine for enterprises).

· Persons who knowingly move or sell a mobile or manufactured home that has delinquent taxes is guilty of a class 1 misdemeanor (up to 6 months in jail/up to $2,500 fine for persons or $20,000 fine for enterprises). Fines collected will be deposited in the state general fund.

· Current law on personal property applies to the appeals of the value of any mobile or manufactured homes.

· If a person purchases a mobile or manufactured home that has delinquent taxes, and pays those taxes, they may bring an action against the previous owner unless the delinquent taxes were noted as part of a written sales contract. If the delinquent taxes were not part of the sales contract, and the purchaser prevails, they may recover damages, attorney fees and treble the amount of delinquent taxes paid.

Title Documents

· Mobile and manufactured homes that are not permanently affixed cannot be conveyed as part of an estate or inheritance unless it is in a written as part of the disposition of the estate.

· A person who buys a mobile or manufactured home that is not permanently affixed must file the title with a chattel deed in the county recorder’s office. Chattel deed is defined as a document of title for a mobile home or manufactured home that in the regular course of business or financing is treated as adequate evidence that the person holding it is entitled to receive, hold or dispose of the mobile or manufactured home.

· A person who owns a mobile or manufactured home that is permanently affixed must file an affidavit of affixture with the county recorder. The affidavit of affixture must contain the vehicle identification number, legal descriptions of the real property, a statement that the home was assessed and taxed and any lienholders. When the affidavit of affixture is recorded, it will be conveyed with the title to the real property, unless it is removed from the property by obtaining proper permits and a chattel deed is recorded.

· Prescribes forms for conveyances and warranties of mobile or manufactured homes.

Miscellaneous Provisions

· The bill only applies to residents of this state. Resident is defined as a person who owns, leases or rents a dwelling in this state and occupies it as a place of residence for six months or more. Resident also includes any person who accepts employment in this state, has a child in public school (with resident tuition rates). Resident also includes any individual, partnership, company or corporation that maintains an office or warehouse in this state. Resident does not include tourists or out-of-state students.

· Makes technical and conforming changes.

· Effective beginning in January 2003.

· ---------- DOCUMENT FOOTER ---------

· 45th Legislature