Manufactured Home Assessment
Overview
California Manufactured homes are subject to taxes either by local county tax systems or by vehicle license fees paid to the State instead of property taxes.
Background
Before July 1, 1980, Manufactured homes not on permanent foundations were taxed just like automobiles or trucks through license fees. In 1980 the State Legislature adopted the "Manufactured Home Property Tax Law". This law treats taxes on all new and most used Manufactured homes purchased on or after July 1, 1980, more like taxes on conventional homes.
Definition of a Manufactured Home
A Manufactured home is a movable structure made of one or more sections, designed and set up as one or more home units and usable with or without a foundation. Any trailer coach that is more than eight feet wide or forty feet long, or one that requires a permit to move on the highway is a Manufactured home.
Recreational vehicles, as well as buses and prefabricated housing units are not Manufactured homes.
Title Transfers
The state's Department of Housing and Community Development transfers titles on Manufactured Homes. They cannot transfer title of a used manufactured home subject to local property taxes without a tax clearance from the county tax collector of the county in which the manufactured home is located. In Sonoma County, please contact the Sonoma County Tax Collector to obtain a Manufactured home Tax Clearance Certificate. Please note that any outstanding taxes owed must be paid before a Tax Clearance Certificate can be issued.
To change the title or obtain a copy of the title to your manufactured home please contact the Department of Housing and Community Development at 800) 952-8356.
Remember that this type of title transfer applies only to manufactured homes not on permanent foundations. If your manufactured home is on a permanent foundation, the County Recorder treats it just like a conventional home title transfer.
Taxes
All manufactured homes sold new after 7/1/1980 are subject to local property taxes.
When purchasing a manufactured home that sold new before 7/1/1980, the buyer may have a choice of paying an in-lieu tax (license fee) to the State Department of Housing and Community Development (HCD), or paying property taxes to the County. This is decided in escrow.
It is possible for a manufactured home charged the in-lieu tax to be moved to the property tax roll at any time. However, once a manufactured home is placed on the property tax roll, it cannot go back to in-lieu tax status.
Manufactured Homes on Permanent Foundations
Manufactured homes on a permanent foundation are not taxed as a "manufactured" home. These homes are similar to modular housing and taxed as conventional homes.
In-Lieu Tax
Unless you request voluntary conversion to local property taxation, you will be able to continue paying in-lieu tax. If you sell your manufactured home, the new owner will also pay license fees unless he or she requests conversion (remember that manufactured homes subject to in-lieu license fees are also subject to sales or use tax when sold).
Property tax
California state law sets the property tax on manufactured homes. The tax rate is $1 per $100 of assessed value. There may also be certain direct assessments applied by cities and districts and special taxes approved by local voters.
The Assessor determines the assessed value of manufactured homes, which is usually the cash or market value at the time of purchase. This value cannot increase more than 2 percent per year until the next time the manufactured home is sold. When a manufactured home is sold, it is reassessed. If your manufactured home is parked on land that you own, the land will be assessed and taxed separately.
Property Tax verses License Fees
There may be advantages to changing from paying license fees to paying property tax on a manufactured home, but each case is different.
One possible advantage is that property taxes are paid in two annual installments.
Converting a Manufactured Home to Local Property Tax
You can request a voluntary conversion to local property taxes by calling (800) 952-8356 or writing to the California Department of Housing and Community Development at:
State of California
Department of Housing and Community Development
P.O. Box 2111
6007 Folsom Boulevard
Sacramento, CA 95810
Visit the Department of Housing and Community Development Website for more information. http://www.hcd.ca.gov
Sales Tax on Manufactured Homes
It is important to note that manufactured homes subject to local property taxes are exempt from any sales or use tax. You may, therefore, enhance the marketability of your manufactured home by voluntarily converting it to local property taxation prior to selling it. But once you convert to local property taxation, you can't revert back to vehicle license fees.
Supplemental Taxes
Whether or not you have to pay supplemental taxes if you purchase a used manufactured home or modify your own manufactured home by construction depends on what type of taxes you currently are paying. Manufactured homes that are subject to local property taxes are subject to supplemental taxes. Manufactured homes that are subject to vehicle license fees are not subject to supplemental taxes.
Visit the Tax Collector's website to read about Supplemental Taxes
Delinquent Taxes
Regardless of the original purchase date, if the license fees on a manufactured home became delinquent on or before May 31, 1984, it automatically converted to the local property tax system (delinquent license fees no longer cause automatic transfer to local property taxation).
Visit the Tax Collector's website to read about Delinquent Taxes
Exemptions
You may be entitled to the $7,000 Homeowner Exemption or other exemptions through the County Assessor. It is important to note that you cannot qualify for both the Homeowner Exemption and the Renter's Credit on your California State Income Tax Return.