(1)Existing law, the Manufactured Home Property Tax Law, establishes a process governing the taxation of manufactured homes, including mobilehomes, as defined. Existing law requires the county tax collector, upon application, to issue a tax clearance certificate or a conditional tax clearance certificate if specified requirements are met. Existing law requires a tax clearance certificate issued to be used to permit registration of used manufactured homes and for other purposes prescribed by the Controller. The tax clearance certificate may indicate that the county tax collector finds that no local property tax is due or is likely to become due or that any applicable local property taxes have been paid or are to be paid in a manner not requiring the withholding of registration or the transfer of registration. Existing law requires a conditional tax clearance certificate issued to indicate that the county tax collector finds that a tax liability exists, the amount due, and the final date that amount may be paid before a further tax liability is incurred.

This bill would revise the above-described procedures for issuing a tax clearance certificate or a conditional tax clearance certificate and for the collection of unpaid, estimated taxes. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the tax collector, upon request by an escrow officer, as provided, giving their estimate of those taxes or assessments for the current fiscal year and one succeeding fiscal year. The bill would require the tax collector to issue a tax clearance certificate or a conditional tax clearance certificate upon payment of the estimate of taxes or assessments, as provided.

The bill would make conforming changes with respect to the provision governing conditional tax clearance certificates issued, requiring the certificate to indicate the final date for payment of a tax liability. The bill would also make conforming changes with respect to the procedure for an escrow agent to receive and satisfy an estimate of those taxes or assessments for the current fiscal year and the first succeeding fiscal year. By placing new duties on local government officials with respect to these property tax collection procedures, the bill would impose a state-mandated local program.

(2)Existing law authorizes the conditional tax clearance to be in any form as prescribed by the Controller. Existing law also makes the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller a misdemeanor.

By changing the procedures for issuing tax clearance certificates, the bill would expand the scope of an existing crime, thereby imposing a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law, the Manufactured Home Property Tax Law, establishes a process governing the taxation of manufactured homes, including mobilehomes, as defined. Existing law requires the county tax collector, upon application, to issue a tax clearance certificate or a conditional tax clearance certificate if specified requirements are met. Existing law requires a tax clearance certificate issued to be used to permit registration of used manufactured homes and for other purposes prescribed by the Controller. The tax clearance certificate may indicate that the county tax collector finds that no local property tax is due or is likely to become due or that any applicable local property taxes have been paid or are to be paid in a manner not requiring the withholding of registration or the transfer of registration. Existing law requires a conditional tax clearance certificate issued to indicate that the county tax collector finds that a tax liability exists, the amount due, and the final date that amount may be paid before a further tax liability is incurred.

This bill would revise the above-described procedures for issuing a tax clearance certificate or a conditional tax clearance certificate and for the collection of unpaid, estimated taxes. The bill would authorize the tax certificate to also indicate that the county tax collector finds that property taxes are not yet payable, as described. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the appropriate state or local official giving their estimate of those taxes or assessments and a tax clearance certificate would not be permitted to be issued until the security for payment of the taxes not yet payable has been received by the county tax collector. The bill would also require payment of estimated taxes to be received by the county tax collector in the county where the manufactured home is located for each manufactured home transfer prior to transfer. tax collector, upon request by an escrow officer, as provided, giving their estimate of those taxes or assessments for the current fiscal year and one succeeding fiscal year. The bill would require the tax collector to issue a tax clearance certificate or a conditional tax clearance certificate upon payment of the estimate of taxes or assessments, as provided.

The bill would make conforming changes with respect to the provision governing conditional tax clearance certificates issued, requiring the certificate to indicate the final date for payment of a tax liability. The bill would also make conforming changes with respect to the procedure for an escrow agent to receive and satisfy an estimate of those taxes or assessments for the current fiscal year and the first succeeding fiscal year. By placing new duties on local government officials with respect to these property tax collection procedures, the bill would impose a state-mandated local program.

(2)Existing law authorizes the conditional tax clearance to be in any form as prescribed by the Controller. Existing law also makes the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller a misdemeanor.

By changing the procedures for issuing tax clearance certificates, the bill would expand the scope of an existing crime, thereby imposing a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law, the Manufactured Home Property Tax Law, establishes a process governing the taxation of manufactured homes, including mobilehomes, as defined. Existing law requires the county tax collector, upon application, to issue a tax clearance certificate or a conditional tax clearance certificate if specified requirements are met. Existing law requires a tax clearance certificate issued to be used to permit registration of used manufactured homes and for other purposes prescribed by the Controller. The tax clearance certificate may indicate that the county tax collector finds that no local property tax is due or is likely to become due or that any applicable local property taxes have been paid or are to be paid in a manner not requiring the withholding of registration or the transfer of registration. Existing law requires a conditional tax clearance certificate issued to indicate that the county tax collector finds that a tax liability exists, the amount due, and the final date that amount may be paid before a further tax liability is incurred.

This bill would revise the above-described procedures for issuing a tax clearance certificate and for the collection of unpaid, estimated taxes. The bill would authorize the tax certificate to also indicate that the county tax collector finds that property taxes are not yet payable, as described. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the appropriate state or local official giving their estimate of those taxes or assessments and a tax clearance certificate would not be permitted to be issued until the security for payment of the taxes not yet payable has been received by the county tax collector. The bill would also require payment of estimated taxes to be received by the county tax collector in the county where the manufactured home is located for each manufactured home transfer prior to transfer.

The bill would make conforming changes with respect to the provision governing conditional tax clearance certificates issued, requiring the certificate to indicate the final date for payment of a tax liability. By placing new duties on local government officials with respect to these property tax collection procedures, the bill would impose a state-mandated local program.

(2)Existing law authorizes the conditional tax clearance to be in any form as prescribed by the Controller. Existing law also makes the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller a misdemeanor.

By changing the procedures for issuing tax clearance certificates, the bill would expand the scope of an existing crime, thereby imposing a state-mandated local program.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1093 (Jim Patterson) - Property taxation: manufactured homes: tax collection

Bill Summary:

AB 1093 would make three changes to current procedures to obtain a tax clearance certificate from a tax collector when transferring ownership of a mobilehome.

Fiscal Impact:

• The State Controller’s Office would incur minor and absorbable costs to update informational materials summarizing tax clearance certificate procedures.
• The bill would likely result in increased annual property tax revenue by requiring payment of property taxes prior to issuance of a tax clearance certificate and transferring ownership of a manufactured home. The magnitude is unknown, but potentially significant. Increases in local property tax revenues, in turn, decrease General Fund Proposition 98 spending by up to roughly 50 percent (the exact amount depends on the specific amount of the annual Proposition 98 guarantee, which in turns depends upon a variety of economic, demographic and budgetary factors).
• By modifying how a county tax collector must issue tax clearance certificates, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs (General Fund). The magnitude is unknown, but potentially in excess of $50,000 annually.

Background:

Under the California Constitution, all property is taxable unless explicitly exempted. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1 percent of full cash value and property is reassessed only when ownership changes or new construction occurs.

Taxpayers who own detached homes generally own both the structure and the land upon which it resides. Conversely, with mobilehomes, residents generally own the structure, but not the land upon which it sits. This land is leased from the mobilehome park owner. The management of a mobilehome park can terminate a tenancy when the homeowner or resident fails to comply with a local ordinance, state law, or regulation within a reasonable time after the mobilehome owner receives a notice of noncompliance.

Mobilehomes and manufactured homes differ from traditional residential properties in California, especially for property tax purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all mobilehomes and manufactured homes in the State. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of the property tax; however, the Legislature required any mobilehomes sold after July 1, 1980 to pay the property tax as personal property. Nonpayment of ILF constitutes a lien on the mobilehome, and prohibits HCD from issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the mobilehome subject to that lien. Any new mobilehomes sold in the State are automatically placed on the local property tax roll.

The process for buying and selling a mobilehome can be much less formal than it is for traditional homes, where cash is paid, no realtor is involved, and no formal change in title is recorded with the county recorder. However, current law requires transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow.

If a mobilehome is subject to ILF, the buyer must pay all fees and penalties to HCD before the title can be transferred. HCD must inform counties of new registrations, title transfers, and conversions to local property taxation each month.

If conversely the mobilehome is subject to property tax, the buyer must obtain a tax clearance or conditional tax clearance certificate from the county tax collector, indicating all property taxes have been paid or no taxes are due before transferring title of a mobilehome subject to property taxes. HCD can withhold amending the title of any mobilehome subject to local property taxes until the applicant presents a tax clearance certificate or conditional tax clearance certificate issued by the county tax collector. Escrow officers for mobilehome sales may forward to the tax collector a written demand for a tax clearance certificate if no liability exists, or a conditional tax clearance certificate if a tax liability exists. If the tax collector fails to comply with the demand within 30 days, the escrow officer may close the escrow and send a statement of facts to HCD, which can accept the statement in-lieu of the tax clearance certificate, and process the transfer of registration.

Despite these procedures, buyers and sellers may still not be aware of delinquent taxes and fees on the mobilehome they purchase, especially for transactions that do not go through dealers. Unless notified of a change in ownership, tax collectors will continue to mail tax bills to a mobilehome under the previous owner's name, meaning tax bills become delinquent and defaulted in the name of the wrong owner. If the new owner does not contact the tax collector to correct the record, such taxes, interest, and penalties will compound. Lack of registration also prevents owners from legally making repairs to the home, insuring it, and transferring ownership to another party. Additionally, the tax certificate process only applies to previously assessed taxes and assessments, not ones imposed in the current year.

Proposed Law:

This bill, among other things, do the following:

• Revise the current procedures to obtain a tax clearance or conditional tax clearance certificate to:
  • Instead of requiring the tax collector to issue a tax clearance or conditional tax clearance certificate upon application, direct the tax collector to compute the amount of taxes and assessments that are not yet payable based on their estimate of those taxes and assessments for the current fiscal year and the first succeeding fiscal year.
  • Require the tax collector to compute these amounts on a certificate or statement.
  • Provide the tax collector can only issue a tax clearance certificate when receiving a deposit equal to the amount of estimated taxes on the certificate or statement.
  • Prohibit the transfer of a manufactured home subject to local property taxation unless the tax collector has issued a tax clearance certificate, except for new manufactured homes for which an application is being made for original registration.
• Modify sections of law requiring transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow, as specified.

Staff Comments:

Because the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the State Controller constitutes a misdemeanor, this bill would expand the definition of a crime. Any local government cost resulting from this portion of the bill’s mandate are not state-reimbursable because it only involves the definition of a crime or the penalty for conviction of a crime. As noted above, if the Commission on State Mandates determines that this bill contains other costs mandated by the State, reimbursement to local agencies and school districts for those costs would be made pursuant to existing law.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1093 (Jim Patterson) - Property taxation: manufactured homes: tax collection

Bill Summary:

AB 1093 would make three changes to current procedures to obtain a tax clearance certificate from a tax collector when transferring ownership of a mobilehome.

Fiscal Impact:

• The State Controller’s Office would incur minor and absorbable costs to update informational materials summarizing tax clearance certificate procedures.
• The bill would likely result in increased annual property tax revenue by requiring payment of property taxes prior to issuance of a tax clearance certificate and transferring ownership of a manufactured home. The magnitude is unknown, but potentially significant. Increases in local property tax revenues, in turn, decrease General Fund Proposition 98 spending by up to roughly 50 percent (the exact amount depends on the specific amount of the annual Proposition 98 guarantee, which in turns depends upon a variety of economic, demographic and budgetary factors).
• By modifying how a county tax collector must issue tax clearance certificates, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs (General Fund). The magnitude is unknown, but potentially in excess of $50,000 annually.

Background:

Under the California Constitution, all property is taxable unless explicitly exempted. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1 percent of full cash value and property is reassessed only when ownership changes or new construction occurs.

Taxpayers who own detached homes generally own both the structure and the land upon which it resides. Conversely, with mobilehomes, residents generally own the structure, but not the land upon which it sits. This land is leased from the mobilehome park owner. The management of a mobilehome park can terminate a tenancy when the homeowner or resident fails to comply with a local ordinance, state law, or regulation within a reasonable time after the mobilehome owner receives a notice of noncompliance.

Mobilehomes and manufactured homes differ from traditional residential properties in California, especially for property tax purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all mobilehomes and manufactured homes in the State. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of the property tax; however, the Legislature required any mobilehomes sold after July 1, 1980 to pay the property tax as personal property. Nonpayment of ILF constitutes a lien on the mobilehome, and prohibits HCD from issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the mobilehome subject to that lien. Any new mobilehomes sold in the State are automatically placed on the local property tax roll.

The process for buying and selling a mobilehome can be much less formal than it is for traditional homes, where cash is paid, no realtor is involved, and no formal change in title is recorded with the county recorder. However, current law requires transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow.

If a mobilehome is subject to ILF, the buyer must pay all fees and penalties to HCD before the title can be transferred. HCD must inform counties of new registrations, title transfers, and conversions to local property taxation each month.

If conversely the mobilehome is subject to property tax, the buyer must obtain a tax clearance or conditional tax clearance certificate from the county tax collector, indicating all property taxes have been paid or no taxes are due before transferring title of a mobilehome subject to property taxes. HCD can withhold amending the title of any mobilehome subject to local property taxes until the applicant presents a tax clearance certificate or conditional tax clearance certificate issued by the county tax collector. Escrow officers for mobilehome sales may forward to the tax collector a written demand for a tax clearance certificate if no liability exists, or a conditional tax clearance certificate if a tax liability exists. If the tax collector fails to comply with the demand within 30 days, the escrow officer may close the escrow and send a statement of facts to HCD, which can accept the statement in-lieu of the tax clearance certificate, and process the transfer of registration.

Despite these procedures, buyers and sellers may still not be aware of delinquent taxes and fees on the mobilehome they purchase, especially for transactions that do not go through dealers. Unless notified of a change in ownership, tax collectors will continue to mail tax bills to a mobilehome under the previous owner's name, meaning tax bills become delinquent and defaulted in the name of the wrong owner. If the new owner does not contact the tax collector to correct the record, such taxes, interest, and penalties will compound. Lack of registration also prevents owners from legally making repairs to the home, insuring it, and transferring ownership to another party. Additionally, the tax certificate process only applies to previously assessed taxes and assessments, not ones imposed in the current year.

Proposed Law:

This bill, among other things, do the following:

• Revise the current procedures to obtain a tax clearance or conditional tax clearance certificate to:
  • Instead of requiring the tax collector to issue a tax clearance or conditional tax clearance certificate upon application, direct the tax collector to compute the amount of taxes and assessments that are not yet payable based on their estimate of those taxes and assessments for the current fiscal year and the first succeeding fiscal year.
  • Require the tax collector to compute these amounts on a certificate or statement.
  • Provide the tax collector can only issue a tax clearance certificate when receiving a deposit equal to the amount of estimated taxes on the certificate or statement.
  • Prohibit the transfer of a manufactured home subject to local property taxation unless the tax collector has issued a tax clearance certificate, except for new manufactured homes for which an application is being made for original registration.
• Modify sections of law requiring transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow, as specified.

Staff Comments:

Because the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the State Controller constitutes a misdemeanor, this bill would expand the definition of a crime. Any local government cost resulting from this portion of the bill’s mandate are not state-reimbursable because it only involves the definition of a crime or the penalty for conviction of a crime. As noted above, if the Commission on State Mandates determines that this bill contains other costs mandated by the State, reimbursement to local agencies and school districts for those costs would be made pursuant to existing law.

-- END --

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Anna M. Caballero, Chair

2023 - 2024 Regular

Property taxation: manufactured homes: tax collection

Makes three changes to the current procedures to obtain a tax clearance certificate from a tax collector when transferring ownership of a mobilehome.

Background

Section One of Article XIII of the California Constitution provides all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1% of full cash value and precludes reassessment unless the property is newly constructed or changes ownership.

Taxpayers who own traditional detached homes almost always own both a structure and the land upon which it is situated. With mobilehomes, residents generally own the structure, but not the land upon which it sits, which they lease from the mobilehome park owner. The management of a mobilehome park can terminate a tenancy when the homeowner or resident fails to comply with a local ordinance, state law, or regulation within a reasonable time after the mobilehome owner receives a notice of noncompliance.

Mobilehomes and manufactured homes are different than traditional residential properties in California, especially for property tax purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all mobilehomes and manufactured homes in the state. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of the property tax; however, the Legislature required any mobilehomes sold after July 1, 1980 to pay the property tax as personal property. Nonpayment of ILF constitutes a lien on the mobilehome, and prohibits HCD from issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the mobilehome subject to that lien. Any new mobilehomes sold in the state are automatically placed on the local property tax roll. Additionally, individuals can elect to pay local property taxes instead of paying the ILF by making a request to HCD.

The process for buying and selling a mobilehome can be much less formal than it is for traditional homes, where cash is paid, no realtor is involved, and no formal change in title is recorded with the county recorder. However, current law requires transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow.

If a mobilehome is subject to ILF, the buyer must pay all fees and penalties to HCD before the title can be transferred. HCD must inform counties of new registrations, title transfers, and conversions to local property taxation each month.

If the mobilehome is subject to property tax, the buyer must obtain a tax clearance or conditional tax clearance certificate from the county tax collector, indicating all property taxes have been paid or no taxes are due before transferring title of a mobilehome subject to property taxes. HCD can withhold amending the title of any mobilehome subject to local property taxes until the applicant presents a tax clearance certificate or conditional tax clearance certificate issued by the county tax collector. Escrow officers for mobilehome sales may forward to the tax collector a written demand for a tax clearance certificate if no liability exists, or a conditional tax clearance certificate if a tax liability exists. If the tax collector fails to comply with the demand within 30 days, the escrow officer may close the escrow and send a statement of facts to HCD, which can accept the statement in-lieu of the tax clearance certificate, and process the transfer of registration.

Despite these procedures, buyers and sellers may still not be aware of delinquent taxes and fees on the mobilehome they purchase, especially for transactions that do not go through dealers. Unless notified of a change in ownership, tax collectors will continue to mail tax bills to a mobilehome under the previous owner's name, meaning tax bills become delinquent and defaulted in the name of the wrong owner. If the new owner does not contact the tax collector to correct the record, so taxes, interest, and penalties will compound. Lack of registration also prevents owners from legally making repairs to the home, insuring it, and transferring ownership to another party. Additionally, the tax certificate process only applies to previously assessed taxes and assessments, not ones imposed in the current year.

The California Association of County Treasurer-Tax Collectors want to add additional requirements on mobilehome sellers to encourage additional compliance with property tax obligations.

Proposed Law

AB 1093 revises the current procedures to obtain a tax clearance or conditional tax clearance certificate to:

• Instead of requiring the tax collector to issue a tax clearance or conditional tax clearance certificate upon application, direct the tax collector to compute the amount of taxes and assessments that are not yet payable based on their estimate of those taxes and assessments for the current fiscal year and the first succeeding fiscal year.
• Require the tax collector to compute these amounts on a certificate or statement.
• Provide the tax collector can only issue a tax clearance certificate when receiving a deposit equal to the amount of estimated taxes on the certificate or statement.
• Prohibit the transfer of a manufactured home subject to local property taxation unless the tax collector has issued a tax clearance certificate, except for new manufactured homes for which an application is being made for original registration.

The measure also makes changes to sections of law requiring transactions by or through a dealer for the purchase of a new or used manufactured home or mobilehome, to proceed through escrow, specifically to:

• Require an escrow agent to make a written request to the tax collector for an estimate of those taxes and assessments for the current year, and the first succeeding fiscal year.
• Require the escrow agent to complete all other requirements to receive a tax clearance or conditional tax clearance certificate.
• Replace references to a demand for a tax clearance certificate with references to a request for an estimate of taxes and fees.

The measure also makes other conforming changes.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “AB 1093 adds to the statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due that year. Obtaining this certificate will then trigger a change in ownership record at the County level, and that information can be shared with HCD, so that the tax rolls will accurately reflect ownership and tax bills will be mailed to the correct owner from the start of ownership.”

2. Sure, but will it work? Transfers of mobilehomes do not occur in the same way as traditional homes, where a title change is evidenced in the county recorder’s office. Instead, state law seeks to increase protections for mobilehome owners by creating a registry at HCD, and requiring sales made through a dealer for the purchase of a new or used manufactured home or mobilehome to proceed through escrow. While the Legislature created the “Register Your Mobilehome” program in the hope of encouraging those who owned a mobilehome without proper title to register it with HCD by waiving past due taxes and fees (AB 587, Chau, 2016; AB 173, Chau, 2019), noncompliance and the resulting tax delinquencies persist. AB 1093 adds a new requirement to pay the estimated taxes and assessments in the current and first succeeding fiscal year due for a mobilehome changing hands before a tax clearance certificate can be issued. Requiring tax collectors to estimate current year taxes would also make the tax collector aware of a potential change in ownership. These requirements should help tax collectors enforce requirements, and potentially accelerate payments of current year taxes; however, it’s unclear whether these requirements will compel additional compliance given the less formal nature of mobilehome sales.

3. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because the issuance, alteration, forgery, or use of any tax clearance certificate or conditional certificate in a manner contrary to the requirements of the Controller constitutes a misdemeanor, AB 1093 expands the definition of a crime, so Legislative Counsel says that the bill imposes a new state mandate. AB 1093 disclaims the state's responsibility for providing reimbursement because the costs are due to expanding a crime.

4. Technicals. Committee staff recommends replacing references to “fees” with “assessments” in the bill’s changes to subdivision (m) of Section 18035 of the Health and Safety Code.

Assembly Actions

Assembly Revenue and Taxation Committee: 11-0
Assembly Appropriations Committee: 15-0
Assembly Floor: 80-0

Support and Opposition

(7/7/23)

Support: California Association of County Treasurers & Tax Collectors (Sponsor)

Opposition: None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1093

Author:(Jim Patterson)

As Introduced Ver:February 15, 2023

Majority vote

SUMMARY

Modifies the process governing the issuance of a tax clearance certificate for the sale of a manufactured home.

Major Provisions

1. Authorizes a county tax collector to provide notice that property taxes are not yet payable.
2. Requires the appropriate state or local official to compute taxes that are not yet payable and include the amount computed in an estimated tax clearance certificate or a statement.
3. Prohibits the issuance of a tax clearance certificate for the sale of a manufactured home until security for payment of taxes that are not yet payable has been received by a county tax collector.

COMMENTS

1. Manufactured homes: The owner of a manufactured home structure will generally rent the underlying land from a manufactured home park owner and own the home itself. Manufactured homes and mobilehomes are required to be registered by The Department of Housing and Community Development (HCD). The HCD estimates that one-third of the approximately 500,000 manufactured homes and mobilehomes in the state have an incorrect title, registration, or title and registration.
2. Tax treatment of manufactured homes: Manufactured homes are different than traditional residential properties in California, particularly for taxation purposes. The HCD maintains a title registry of all manufactured homes and mobilehomes in the state. Before 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of property tax. The Legislature subsequently required that most manufactured homes pay the property tax. Upon sale of a home that is subject to the ILF, the buyer, or the seller on behalf of the buyer, must pay all the fees and penalties to HCD before the title can be transferred. Conversely, if the manufactured home or mobilehome is subject to property taxation, the buyer must obtain a tax clearance certificate from the county tax collector demonstrating that all property taxes have been paid. The tax clearance certificate provides verification to the HCD that all existing taxes have been paid and future taxes due will be paid in the following year. Upon receipt of a valid tax clearance certificate, the HCD records the change of ownership and notifies the corresponding county of that change.
3. Manufactured home transactions: Transactions of manufactured homes and mobile homes can be significantly less formal than traditional residential transactions. The sale can occur in cash, without a realtor, and forgo the escrow process. No formal change in title is filed with the County Recorder, which can cause buyers and sellers to remain unaware that delinquent taxes and fees are imposed upon the manufactured home or mobilehome subject to sale. If these delinquencies are not rectified, they can last for years or decades, jeopardizing the registration status of the home.

According to the Author

AB 1093 adds to the statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due that year. Obtaining this certificate will then trigger a change in ownership record at the County level, and that information can be shared with HCD, so that the tax rolls will accurately reflect ownership and tax bills will be mailed to the correct owner from the start of ownership.

Arguments in Support

The California Association of County Treasurers and Tax Collectors (CACTTC), writing as sponsors of this bill, states, in part:

AB 1093…[adds] to statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due during the year. First, this makes sure that taxes are collected for that year, and secondly, obtaining this certificate will trigger a change in ownership record at the county level, and that information can be shared with the HCD so that the tax rolls will accurately reflect ownership, and tax bills will be mailed to the correct owner from the start of ownership.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. Minor and absorbable costs to the State Controller's Office to update informational materials reflecting specified changes to tax clearance certificate procedures.
2. Likely annual property tax revenue gain of an unknown, but potentially significant, amount by requiring security for payment of property taxes prior to issuance of a tax clearance certificate and transferring ownership of a manufactured home. Although property tax is a local government revenue source, increases in property tax revenues offset required Proposition 98 General Fund (GF) spending.
3. By modifying how a county tax collector must issue tax clearance certificates, this bill likely creates a state-mandated local program. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state (GF).

VOTES

ASM REVENUE AND TAXATION: 11-0-0

YES: Irwin, Wallis, Bains, Grayson, Pacheco, Jim Patterson, Petrie-Norris, Luz Rivas, Ta, Valencia, Zbur

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: February 15, 2023

CONSULTANT: Harrison Bowlby / REV. & TAX. / (916) 319-2098 FN: 0000627

Date of Hearing: May 17, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1093

Author:(Jim Patterson) – As Introduced Ver:February 15, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill revises the procedures for issuing a tax clearance certificate for the sale of a manufactured home.

Specifically, this bill:

1. Authorizes a tax clearance certificate to indicate, as one of three options, that the county tax collector finds the property taxes on a used manufactured home are not yet payable.
2. Requires the appropriate state or local official to prepare a certificate or statement that includes the official’s estimated computation of those taxes not yet payable.
3. Prohibits a tax clearance certificate from being issued until the security for payment of taxes not yet payable has been received by the county tax collector.
4. Requires payment of estimated taxes to be received by the county tax collector in the county where the manufactured home is located prior to each transfer.

FISCAL EFFECT:

1. Minor and absorbable costs to the State Controller’s Office to update informational materials reflecting specified changes to tax clearance certificate procedures.
2. Likely annual property tax revenue gain of an unknown, but potentially significant, amount by requiring security for payment of property taxes prior to issuance of a tax clearance certificate and transferring ownership of a manufactured home. Although property tax is a local government revenue source, increases in property tax revenues offset required Proposition 98 General Fund (GF) spending.
3. By modifying how a county tax collector must issue tax clearance certificates, this bill likely creates a state-mandated local program. If the Commission on State Mandates determines the provisions of this bill create a new program or impose a higher level of service for which the state must reimburse local costs, counties could claim reimbursement from the state (GF).

COMMENTS:

1. Purpose. According to the author, this bill ensures “the tax rolls will accurately reflect ownership and tax bills will be mailed to the correct owner from the start of ownership.” This bill is sponsored by the California Association of County Treasurers and Tax Collectors, which describes the problem as follows:

Currently, it is not required that a seller obtain an estimated tax clearance certificate when selling a mobile home. The process for selling mobile homes can be very informal, and current law is not sufficient to maintain accurate ownership [rolls] for mobile homes. Additionally, due to a high volume of tax delinquency and a dysfunctional process for title changes of mobile homes, counties and state agencies have been largely unsuccessful in collecting delinquent taxes on mobile homes.

1. Tax Treatment of Manufactured Homes. Manufactured homes are taxed differently than traditional residential properties in California. The Department of Housing and Community Development (HCD) maintains a title registry of all manufactured homes in the state. Before 1980, all manufactured homes paid an in-lieu fee (ILF) to HCD instead of property tax. The Legislature subsequently required the payment of property tax on most manufactured homes. Upon sale of a home that is subject to the ILF, the buyer must pay all fees and penalties to HCD before the title can be transferred. If the manufactured home is subject to property tax, the buyer (or seller, on behalf of the buyer) must obtain a tax clearance certificate from the county tax collector, which provides verification to HCD that all existing taxes have been paid and future taxes due will be paid in the following year. Upon receipt of a valid tax clearance certificate from the buyer, HCD records the change in ownership and notifies the corresponding county assessor.

This bill revises the procedures for issuing a tax clearance certificate for the sale of a manufactured home by allowing the certificate to indicate whether there are property taxes on the home not yet payable and requiring an estimation of that amount for the upcoming fiscal year to be provided to the buyer or seller. This bill prohibits the tax collector from issuing a tax clearance certificate until the tax collector receives security for payment of those taxes not yet payable. Thus, this bill creates a mechanism to ensure taxes estimated to be owed are collected prior to a change in ownership of a manufactured home.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 24, 2023

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1093 (

Author:Jim Patterson) – As Introduced Ver:February 15, 2023

SUSPENSE

Majority vote. Fiscal committee.

SUBJECT: Property taxation: manufactured homes: tax collection

SUMMARY: Modifies the process governing the issuance of a tax clearance certificate for the sale of a manufactured home. Specifically, this bill:

1. Authorizes a county tax collector to provide notice that property taxes are not yet payable.
2. Requires the appropriate state or local official to compute taxes that are not yet payable and include the amount computed in an estimated tax clearance certificate or a statement.
3. Prohibits the issuance of a tax clearance certificate for the sale of a manufactured home until security for payment of taxes that are not yet payable has been received by a county tax collector.
4. Makes conforming changes to provisions governing conditional tax clearance certificates by requiring the certificate to note the final tax liability payment date.
5. Provides that no reimbursement to local agencies and school districts is required by this bill for certain costs that may be incurred because this bill creates, eliminates, or changes the penalty for a crime or infraction. If the Commission on State Mandates determines that this bill causes local agencies and school districts to incur other costs, this bill requires that those costs be reimbursed pursuant to existing law.

EXISTING LAW:

1. Provides that all property is taxable, unless explicitly exempted by the Constitution or federal law. (California Constitution, Article XIII, Section 1.)
2. Limits any ad valorem taxation on real property to a maximum amount of 1% of the full cash value of the property. The property may only be reassessed if it is newly constructed or upon a change in ownership. (California Constitution, Article XIII A, Sections 1 and 2.)
3. Establishes the Manufactured Home Property Tax (MHPT) Law which governs the property taxation of manufactured homes, as defined. The MHPT Law applies to manufactured homes that were first sold new on or after July 1, 1980, or if the owner has requested that the manufactured home be subject to taxation under the MHPT Law. Manufactured homes subject to property taxation are generally assessed on the value of the home itself, unless the home's foundation is permanently affixed to the land, and are subject to reassessment only upon a change in ownership or completion of new construction, as specified. (Revenue and Taxation Code Section 5800 et seq.)
4. Requires that all manufactured homes and mobile homes that are not permanently affixed to foundations be registered with the Department of Housing and Community Development (HCD) and authorizes the HCD to suspend, revoke, or cancel the title of a manufactured home or mobilehome that is in violation of registration requirements, among other violations. (Health and Safety Code (H&SC) Sections 18075.5 and 18122.)
5. Prohibits any person from neglecting to transfer the title or registration of a manufactured home or mobilehome to the lawfully entitled transferee. (H&SC Section 18122.5.)
6. Defines "manufactured homes" and "mobilehomes" in a similar manner, generally as a structure that is transportable in one or more sections and is subject to certain dimension limitations, except that mobilehomes refer to those structures constructed before June 15, 1976, and manufactured homes refer to those structures constructed on or after that date. (H&SC Sections 18008 and 18009.)

FISCAL EFFECT: Unknown

COMMENTS:

1. The author has provided the following statement in support of this bill:
   
   AB 1093 adds to the statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due that year. Obtaining this certificate will then trigger a change in ownership record at the County level, and that information can be shared with HCD, so that the tax rolls will accurately reflect ownership and tax bills will be mailed to the correct owner from the start of ownership.
2. The California Association of County Treasurers and Tax Collectors (CACTTC), writing as sponsors of this bill, state, in part:
   
   AB 1093…[adds] to statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due during the year. First, this makes sure that taxes are collected for that year, and secondly, obtaining this certificate will trigger a change in ownership record at the county level, and that information can be shared with the HCD so that the tax rolls will accurately reflect ownership, and tax bills will be mailed to the correct owner from the start of ownership.
3. Committee Staff Comments
   1. Manufactured homes: Owners of typical residential properties generally own the structure and underlying land. Manufactured homes are usually different in that the owner has title to the structure, but not the underlying land. Typically, the owner of a manufactured home structure will rent the underlying land from a manufactured home park owner. Manufactured homes and mobilehomes are required to be registered by the HCD. The HCD estimates that one-third of the approximately 500,000 manufactured homes and mobilehomes in the state have an incorrect title, registration, or title and registration.
   2. Tax treatment of manufactured homes: Manufactured homes are different than traditional residential properties in California, particularly for taxation purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all manufactured homes and mobilehomes in the state. Before 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of property tax. The Legislature subsequently required that most manufactured homes pay the property tax. Upon sale of a home that is subject to the ILF, the buyer must pay all the fees and penalties to HCD before the title can be transferred. Conversely, if the manufactured home or mobilehome is subject to property taxation, the buyer must obtain a tax clearance certificate from the county tax collector demonstrating that all property taxes have been paid. The tax clearance certificate provides verification to the HCD that all existing taxes have been paid and future taxes due will be paid in the following year. Upon receipt of a valid tax clearance certificate, the HCD record the change of ownership and notifies the corresponding county of that change.
   3. Manufactured home transactions: Transactions of manufactured homes and mobile homes can be significantly less formal than traditional residential transactions. The sale can occur in cash, without a realtor, and forgo the escrow process. No formal change in title is filed with the County Recorder, which can cause buyers and sellers to remain unaware that delinquent taxes and fees are imposed upon the manufactured home or mobilehome subject to sale. If these delinquencies are not rectified, they can last for years or decades, jeopardizing the registration status of the home.
   4. "Register Your Mobilehome Program": In 2016, the Legislature passed, and Governor Brown signed, AB 587 (Chau), Chapter 396, Statutes of 2016, which established the "Register your Mobilehome Program" under the HCD. This program was intended to help a mobilehome owner become compliant with existing law regarding registration of their home by providing a tax abatement program. Under this program, the HCD would transfer title to an applicant that could prove ownership of the home, and would be assessed reduced charges by HCD or enter into a payment plan. The HCD would then release any lien upon the home, waive outstanding charges, and update documents for successful applicants.
      
      For homes subject to property taxation, the HCD was required to issue an applicant a conditional title, as defined, that the applicant would then transmit to their county tax collector. The applicant would then be required to pay a reduced property tax, the tax collector would update property tax records, and issue a tax liability certificate, which would complete the transfer of title upon filing with the HCD. This program did not relieve any owner other than the applicant from liabilities arising from the nonpayment of ILFs or property taxes that were levied before the sale of the home. Therefore, a tax collector could still collect these liabilities from previous owners. This program sunset on January 1, 2020, but was extended by one year until January 1, 2021 by AB 173 (Chau), Chapter 488, Statutes of 2020.
4. What does this bill do? This bill would require that an estimation of property taxes that are not yet payable be provided to the purchaser. This bill would further prohibit a county tax collector from issuing a tax clearance certificate in instances where a manufactured home or mobile home is for sale and property taxes are not yet payable unless security for payment of those taxes has been received by the county tax collector.
   The CACTTC contends that there is a deficiency in existing law to address the inaccurate ownership records resulting from the informal transaction process for manufactured homes and mobilehomes. By requiring that unpayable taxes be securitized before a tax clearance certificate is issued, this bill seeks to ensure taxes owed are collected. Additionally, providing another measure by which tax collectors are made aware of changes in ownership helps ensure delinquencies and defaults are registered under the correct taxpayer's name. Moreover, increasing the capacity of counties to properly record ownership of the home provides an avenue to inform HCD of a change in ownership of homes that are subject to registration by the HCD.
5. Previous legislation:
   1. AB 173 (Chau), Chapter 488, Statutes of 2020, extended the sunset date of the Register Your Mobilehome Program by one year to January 1, 2021.
   2. AB 587 (Chau), Chapter 396, Statues of 2016, established the Register Your Mobilehome Program, which provided an abatement program for mobilehome owners that were delinquent on ILFs or property taxes.

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of County Treasurers and Tax Collectors (Sponsor)

Opposition

None on file

Analysis Prepared by: Harrison Bowlby / REV. & TAX. / (916) 319-2098

Date of Hearing: March 27, 2023

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1093 (

Author:Jim Patterson) – As Introduced Ver:February 15, 2023

Majority vote. Fiscal committee.

SUBJECT: Property taxation: manufactured homes: tax collection

SUMMARY: Modifies the process governing the issuance of a tax clearance certificate for the sale of a manufactured home. Specifically, this bill:

1. Authorizes a county tax collector to provide notice that property taxes are not yet payable.
2. Requires the appropriate state or local official to compute taxes that are not yet payable and include the amount computed in an estimated tax clearance certificate or a statement.
3. Prohibits the issuance of a tax clearance certificate for the sale of a manufactured home until security for payment of taxes that are not yet payable has been received by a county tax collector.
4. Makes conforming changes to provisions governing conditional tax clearance certificates by requiring the certificate to note the final tax liability payment date.
5. Provides that no reimbursement to local agencies and school districts is required by this bill for certain costs that may be incurred because this bill creates, eliminates, or changes the penalty for a crime or infraction. If the Commission on State Mandates determines that this bill causes local agencies and school districts to incur other costs, this bill requires that those costs be reimbursed pursuant to existing law.

EXISTING LAW:

1. Provides that all property is taxable, unless explicitly exempted by the Constitution or federal law. (California Constitution, Article XIII, Section 1.)
2. Limits any ad valorem taxation on real property to a maximum amount of 1% of the full cash value of the property. The property may only be reassessed if it is newly constructed or upon a change in ownership. (California Constitution, Article XIII A, Sections 1 and 2.)
3. Establishes the Manufactured Home Property Tax (MHPT) Law which governs the property taxation of manufactured homes, as defined. The MHPT Law applies to manufactured homes that were first sold new on or after July 1, 1980, or if the owner has requested that the manufactured home be subject to taxation under the MHPT Law. Manufactured homes subject to property taxation are generally assessed on the value of the home itself, unless the home's foundation is permanently affixed to the land, and are subject to reassessment only upon a change in ownership or completion of new construction, as specified. (Revenue and Taxation Code Section 5800 et seq.)
4. Requires that all manufactured homes and mobile homes that are not permanently affixed to foundations be registered with the Department of Housing and Community Development (HCD) and authorizes the HCD to suspend, revoke, or cancel the title of a manufactured home or mobilehome that is in violation of registration requirements, among other violations. (Health and Safety Code (H&SC) Sections 18075.5 and 18122.)
5. Prohibits any person from neglecting to transfer the title or registration of a manufactured home or mobilehome to the lawfully entitled transferee. (H&SC Section 18122.5.)
6. Defines "manufactured homes" and "mobilehomes" in a similar manner, generally as a structure that is transportable in one or more sections and is subject to certain dimension limitations, except that mobilehomes refer to those structures constructed before June 15, 1976, and manufactured homes refer to those structures constructed on or after that date. (H&SC Sections 18008 and 18009.)

FISCAL EFFECT: Unknown

COMMENTS:

1. The author has provided the following statement in support of this bill:

AB 1093 adds to the statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due that year. Obtaining this certificate will then trigger a change in ownership record at the County level, and that information can be shared with HCD, so that the tax rolls will accurately reflect ownership and tax bills will be mailed to the correct owner from the start of ownership.

1. The California Association of County Treasurers and Tax Collectors (CACTTC), writing as sponsors of this bill, state, in part:

AB 1093…[adds] to statute that the seller of a mobile home shall obtain a tax clearance certificate for estimated taxes that will become due during the year. First, this makes sure that taxes are collected for that year, and secondly, obtaining this certificate will trigger a change in ownership record at the county level, and that information can be shared with the HCD so that the tax rolls will accurately reflect ownership, and tax bills will be mailed to the correct owner from the start of ownership.

1. Committee Staff Comments
   1. Manufactured homes: Owners of typical residential properties generally own the structure and underlying land. Manufactured homes are usually different in that the owner has title to the structure, but not the underlying land. Typically, the owner of a manufactured home structure will rent the underlying land from a manufactured home park owner. Manufactured homes and mobilehomes are required to be registered by the HCD. The HCD estimates that one-third of the approximately 500,000 manufactured homes and mobilehomes in the state have an incorrect title, registration, or title and registration.
   2. Tax treatment of manufactured homes: Manufactured homes are different than traditional residential properties in California, particularly for taxation purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all manufactured homes and mobilehomes in the state. Before 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of property tax. The Legislature subsequently required that most manufactured homes pay the property tax. Upon sale of a home that is subject to the ILF, the buyer must pay all the fees and penalties to HCD before the title can be transferred. Conversely, if the manufactured home or mobilehome is subject to property taxation, the buyer must obtain a tax clearance certificate from the county tax collector demonstrating that all property taxes have been paid. The tax clearance certificate provides verification to the HCD that all existing taxes have been paid and future taxes due will be paid in the following year. Upon receipt of a valid tax clearance certificate, the HCD record the change of ownership and notifies the corresponding county of that change.
   3. Manufactured home transactions: Transactions of manufactured homes and mobile homes can be significantly less formal than traditional residential transactions. The sale can occur in cash, without a realtor, and forgo the escrow process. No formal change in title is filed with the County Recorder, which can cause buyers and sellers to remain unaware that delinquent taxes and fees are imposed upon the manufactured home or mobilehome subject to sale. If these delinquencies are not rectified, they can last for years or decades, jeopardizing the registration status of the home.
   4. "Register Your Mobilehome Program": In 2016, the Legislature passed, and Governor Brown signed, AB 587 (Chau), Chapter 396, Statutes of 2016, which established the "Register your Mobilehome Program" under the HCD. This program was intended to help a mobilehome owner become compliant with existing law regarding registration of their home by providing a tax abatement program. Under this program, the HCD would transfer title to an applicant that could prove ownership of the home, and would be assessed reduced charges by HCD or enter into a payment plan. The HCD would then release any lien upon the home, waive outstanding charges, and update documents for successful applicants.

For homes subject to property taxation, the HCD was required to issue an applicant a conditional title, as defined, that the applicant would then transmit to their county tax collector. The applicant would then be required to pay a reduced property tax, the tax collector would update property tax records, and issue a tax liability certificate, which would complete the transfer of title upon filing with the HCD. This program did not relieve any owner other than the applicant from liabilities arising from the nonpayment of ILFs or property taxes that were levied before the sale of the home. Therefore, a tax collector could still collect these liabilities from previous owners. This program sunset on January 1, 2020, but was extended by one year until January 1, 2021 by AB 173 (Chau), Chapter 488, Statutes of 2020.

• 1. What does this bill do? This bill would require that an estimation of property taxes that are not yet payable be provided to the purchaser. This bill would further prohibit a county tax collector from issuing a tax clearance certificate in instances where a manufactured home or mobile home is for sale and property taxes are not yet payable unless security for payment of those taxes has been received by the county tax collector.

The CACTTC contends that there is a deficiency in existing law to address the inaccurate ownership records resulting from the informal transaction process for manufactured homes and mobilehomes. By requiring that unpayable taxes be securitized before a tax clearance certificate is issued, this bill seeks to ensure taxes owed are collected. Additionally, providing another measure by which tax collectors are made aware of changes in ownership helps ensure delinquencies and defaults are registered under the correct taxpayer's name. Moreover, increasing the capacity of counties to properly record ownership of the home provides an avenue to inform HCD of a change in ownership of homes that are subject to registration by the HCD.

• 1. Previous legislation:
     1. AB 173 (Chau), Chapter 488, Statutes of 2020, extended the sunset date of the Register Your Mobilehome Program by one year to January 1, 2021.
     2. AB 587 (Chau), Chapter 396, Statues of 2016, established the Register Your Mobilehome Program, which provided an abatement program for mobilehome owners that were delinquent on ILFs or property taxes.

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of County Treasurers and Tax Collectors (Sponsor)

Opposition

None on file

Analysis Prepared by: Harrison Bowlby / REV. & TAX. / (916) 319-2098