Bill Text: CA SB434 | 2015-2016 | Regular Session | Amended
Bill Title: Manufactured housing: vehicle license fee: property taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB434 Detail]
Download: California-2015-SB434-Amended.html
BILL NUMBER: SB 434 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 20, 2015
INTRODUCED BY Senator Allen
FEBRUARY 25, 2015
An act to amend Section 18551 of the Health and Safety
Code, Section 18119 of the Health and Safety Code,
and to amend Sections 5801 and 5802 of, and to add Section 5826 to,
the Revenue and Taxation Code, relating to manufactured
housing. housing, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 434, as amended, Allen. Manufactured housing: vehicle license
fee: property taxation.
The Mobilehome Parks Act requires the Department of Housing and
Community Development to establish regulations for manufactured home,
mobilehome, and commercial modular foundation systems. Existing law
requires the installation of a manufactured home, mobilehome, or
commercial modular as a fixture or improvement to real property to
comply with specified provisions, including obtaining a building
permit and submission of plans as required by the department's
regulations.
The Vehicle License Fee Law exempts from imposition of the vehicle
license fee mobilehomes sold and installed on a foundation system
pursuant to the above-described provisions and provides that a
mobilehome exempted by this provision is subject to local property
taxation. Existing law also requires the Department of Housing and
Community Development to transfer a manufactured home or mobilehome
which is subject to the vehicle license fee to local property
taxation upon a request executed by the owner, legal owner, and each
junior lienholder.
This bill would require the owner of a manufactured home
or mobilehome to request a transfer from the vehicle license fee to
local property taxation in order for the manufactured home or
mobilehome to be installed as a fixture or improvement on real
property. authorize the assessor to transfer a
manufactured home, subject to vehicle license and registration fees,
to property taxation where the assessor finds that the manufactured
home has been rebuilt to the substantial equi valent of a
new residential structure, as specified, and would require the base
year value of the manufactured home to be its full cash value on the
date of completion of new construction. The bill would
require the assessor to notify each assessee whose manufactured home
is to be placed on the local assessment roll, and to also give
notification to the Department of Housing and Community Development
and the legal owner, if any, of the manufactured home. This bill
would require the Department of Housing and Community Development to
transfer the manufactured home or mobilehome to local property
taxation upon notification by the assessor. This bill would also make
related conforming changes.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18119 of the Health
and Safety Code is amended to read:
18119. (a) If the license fee has not been paid on or before the
60th day following the date on which the fee became delinquent, the
department shall mail a notice to the registered owner, legal owner
and each junior lienholder shown on the permanent title record as of
that date, containing the following information:
(1) That the license fee is delinquent.
(2) That the manufactured home or mobilehome will become subject
to a penalty of fifty dollars ($50) per transportable unit pursuant
to subdivision (b) of Section 18116, if the fees and penalties are
not paid on or before the 120th day after the date of delinquency.
(b) On or before the last day of each calendar month, the
department shall furnish a listing of new registrations and transfers
of title to manufactured homes and mobilehomes subject to local
property taxation under Section 5801 of the Revenue and Taxation
Code, and of all voluntary transfers to local property taxation, as
provided in subdivision (c), to the county assessor of the county in
which the manufactured home or mobilehome is sited.
(c) The department shall transfer a manufactured home or
mobilehome which is subject to vehicle license fee to local property
taxation upon a request for the transfer, as prescribed by the
department, executed by the registered owner, legal owner, and each
junior lienholder. Transfer pursuant to this subdivision shall be
final. Persons obtaining such a transfer thereby waive all
entitlement to petition for reinstatement to the vehicle license fee,
and are not entitled to the refund of any vehicle registration fees
or vehicle license fees paid which apply to the period between the
date of voluntary transfer and the expiration of the registration
period for which the fees were paid.
(d) The department shall transfer a manufactured home or
mobilehome that is subject to the vehicle license fee to local
property taxation upon notification by the assessor that the
manufactured home or mobilehome has become subject to local property
taxation pursuant to Section 5826 of the Revenue and Taxation Code.
SEC. 2. Section 5801 of the Revenue and
Taxation Code is amended to read:
5801. (a) As used in Part 0.5 (commencing with Section 50), Part
1 (commencing with Section 101), Part 2 (commencing with Section
201), and this part, "manufactured home" means a manufactured home as
defined in Section 18007 of the Health and Safety Code or a
mobilehome as defined in Section 18008 of the Health and Safety Code
which:
(1) Was first sold new on or after July 1, 1980.
(2) Was, at the request of the owner, and following his or her
notification of the Department of Housing and Community Development
and the assessor, made subject to taxation under this part.
(3) Was first sold new on or before June 30, 1980, and following
his or her notification by the assessor, subsequently made subject to
taxation under this part.
(b) (1) "Manufactured home," as used in this part, does not
include a manufactured home which has become real property by being
affixed to land on a permanent foundation system pursuant to Section
18551 of the Health and Safety Code and is taxed as all other real
property is taxed.
(2) Except as provided in paragraph (1), a manufactured home,
otherwise subject to taxation pursuant to this part, shall not be
classified as real property for property taxation purposes that would
be excluded from taxation pursuant to this part.
SEC. 3. Section 5802 of the Revenue and
Taxation Code is amended to read:
5802. (a) Except as provided in subdivisions (b), (c), and (d),
"base year value" as used in this part means the full cash value of a
manufactured home on the date the manufactured home is purchased or
changes ownership. If the manufactured home undergoes any new
construction after it is purchased or changes ownership, the base
year value of the new construction is its full cash value on the date
on which the new construction is completed, and if uncompleted, on
the lien date.
(b) The base year value of a manufactured home for which the
license fee is delinquent shall be its full cash value on the lien
date for the fiscal year in which it is first enrolled.
(c) The base year value of a manufactured home converted pursuant
to Section 18119 of the Health and Safety Code from taxation under
Part 5 (commencing with Section 10701) of Division 2 to taxation
under this part shall be its full cash value on the lien date for the
fiscal year in which that manufactured home is first enrolled. A
manufactured home that has been converted is not subject to
supplemental assessment pursuant to Section 75.5 by reason of the
conversion.
(d) The base year value of a manufactured home that changes
ownership in the same calendar year after a conversion in the same
calendar year, shall be its full cash value on the date of the change
in ownership and its value shall be enrolled on the next lien date.
The change in ownership is not subject to supplemental assessment as
provided in Section 75.5.
(e) The base year value of a manufactured home converted pursuant
to Section 5826 from taxation under Article 6 (commencing with
Section 18114) of Chapter 8 of Part 2 of Division 13 of the Health
and Safety Code to taxation under this part shall be its full cash
value on the date of completion of the new construction. The
completion of new construction is subject to supplemental assessment
as provided in Section 75.5.
(e) This section shall become operative on January 1, 1999.
SEC. 4. Section 5826 is added to the
Revenue and Taxation Code , to read:
5826. (a) The assessor may transfer a manufactured home, subject
to vehicle license and registration fees pursuant to Article 6
(commencing with Section 18114) of Chapter 8 of Part 2 of Division 13
of the Health and Safety Code, to property taxation under this part,
where the assessor finds that the manufactured home has been rebuilt
to the substantial equivalent of a new residential structure with a
construction completion date of January 1, 2016, or later and deems
that the manufactured home is no longer transportable in one or more
sections pursuant to Sections 18007 and 18008 of the Health and
Safety Code.
(b) The assessor shall notify each assessee whose manufactured
home is to be placed on the local assessment roll pursuant to this
section. The notification shall be given to the Department of Housing
and Community Development and the legal owner, if any, of the
manufactured home, at the same time it is given to the assessee.
SEC. 5. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. Section 18551 of the Health and
Safety Code is amended to read:
18551. (a) The department shall establish regulations for
manufactured home, mobilehome, and commercial modular foundation
systems that shall be applicable throughout the state. When
established, these regulations supersede any ordinance enacted by any
city, county, or city and county applicable to manufactured home,
mobilehome, and commercial modular foundation systems. The department
may approve alternate foundation systems to those provided by
regulation if the department is satisfied of equivalent performance.
The department shall document approval of alternate systems by its
stamp of approval on the plans and specifications for the alternate
foundation system. A manufactured home, mobilehome, or commercial
modular may be installed on a foundation system as either a fixture
or improvement to the real property, in accordance with subdivision
(b), or a manufactured home or mobilehome may be installed on a
foundation system as a chattel, in accordance with subdivision (c).
(b) Notwithstanding any other law, prior to a manufactured home,
mobilehome, or commercial modular being deemed a fixture or
improvement to the real property, the installation shall comply with
all of the following:
(1) Prior to installation of a manufactured home, mobilehome, or
commercial modular on a foundation system, the manufactured home,
mobilehome, or commercial modular owner or a licensed contractor
shall obtain a building permit from the appropriate enforcement
agency. To obtain a permit, the owner or contractor shall provide the
following:
(A) Written evidence acceptable to the enforcement agency that the
manufactured home, mobilehome, or commercial modular owner owns,
holds title to, or is purchasing the real property where the
mobilehome is to be installed on a foundation system. A lease held by
the manufactured home, mobilehome, or commercial modular owner, that
is transferable, for the exclusive use of the real property where
the manufactured home, mobilehome, or commercial modular is to be
installed, shall be deemed to comply with this paragraph if the lease
is for a term of 35 years or more, or if less than 35 years, for a
term mutually agreed upon by the lessor and lessee, and the term of
the lease is not revocable at the discretion of the lessor except for
cause, as described in subdivisions 2 to 5, inclusive, of Section
1161 of the Code of Civil Procedure.
(B) Written evidence acceptable to the enforcement agency that the
registered owner owns the manufactured home, mobilehome, or
commercial modular free of any liens or encumbrances or, in the event
that the legal owner is not the registered owner, or liens and
encumbrances exist on the manufactured home, mobilehome, or
commercial modular, written evidence provided by the legal owner and
any lienors or encumbrancers that the legal owner, lienor, or
encumbrancer consents to the attachment of the manufactured home,
mobilehome, or commercial modular upon the discharge of any personal
lien, that may be conditioned upon the satisfaction by the registered
owner of the obligation secured by the lien.
(C) Plans and specifications required by department regulations or
a department-approved alternate for the manufactured home,
mobilehome, or commercial modular foundation system.
(D) The manufactured home, mobilehome, or commercial modular
manufacturer's installation instructions, or plans and specifications
signed by a California-licensed architect or engineer covering the
installation of an individual manufactured home, mobilehome, or
commercial modular in the absence of the manufactured home,
mobilehome, or commercial modular manufacturer's instructions.
(E) Building permit fees established by ordinance or regulation of
the appropriate enforcement agency.
(F) A fee payable to the department in the amount of eleven
dollars ($11) for each transportable section of the manufactured
home, mobilehome, or commercial modular, that shall be transmitted to
the department at the time the certificate of occupancy is issued
with a copy of the building permit and any other information
concerning the manufactured home, mobilehome, or commercial modular
that the department may prescribe on forms provided by the
department.
(2) (A) Within five business days of the issuance of the
certificate of occupancy for the manufactured home, mobilehome, or
commercial modular by the appropriate enforcement agency, the
enforcement agency shall record a document naming the owner of the
real property, describing the real property with certainty, and
stating that a manufactured home, mobilehome, or commercial modular
has been affixed to that real property by installation on a
foundation system pursuant to this subdivision. The document shall be
recorded with the county recorder of the county where the real
property, upon which the manufactured home, mobilehome, or commercial
modular that has been installed, is situated.
(B) When recorded, the document referred to in subparagraph (A)
shall be indexed by the county recorder to the named owner and shall
be deemed to give constructive notice as to its contents to all
persons thereafter dealing with the real property.
(C) Fees received by the department pursuant to subparagraph (F)
of paragraph (1) shall be deposited in the Mobilehome-Manufactured
Home Revolving Fund established under subdivision (a) of Section
18016.5.
(3) The certification of title and other indicia of registration
shall be surrendered to the department pursuant to regulations
adopted by the department providing for the cancellation of
registration of a manufactured home, mobilehome, or commercial
modular that is permanently attached to the ground on a foundation
system pursuant to this subdivision. For the purposes of this
subdivision, permanent affixation to a foundation system shall be
deemed to have occurred on the day a certificate of occupancy is
issued to the manufactured home, mobilehome, or commercial modular
owner and the document referred to in subparagraph (A) of paragraph
(2) is recorded. Cancellation shall be effective as of that date and
the department shall enter the cancellation on its records upon
receipt of a copy of the certificate of occupancy. This subdivision
shall not be construed to affect the application of existing laws, or
the department's regulations or procedures with regard to the
cancellation of registration, except as to the requirement therefor
and the effective date thereof.
(4) Once installed on a foundation system in compliance with this
subdivision, a manufactured home, mobilehome, or commercial modular
shall be deemed a fixture and a real property improvement to the real
property to which it is affixed. Physical removal of the
manufactured home, mobilehome, or commercial modular shall thereafter
be prohibited without the consent of all persons or entities who, at
the time of removal, have title to any estate or interest in the
real property to which the manufactured home, mobilehome, or
commercial modular is affixed.
(5) For the purposes of this subdivision:
(A) "Physical removal" shall include, without limitation, the
unattaching of the manufactured home, mobilehome, or commercial
modular from the foundation system, except for temporary purposes of
repair or improvement thereto.
(B) Consent to removal shall not be required from the owners of
rights-of-way or easements or the owners of subsurface rights or
interests in or to minerals, including, but not limited to, oil, gas,
or other hydrocarbon substances.
(6) At least 30 days prior to a legal removal of the manufactured
home, mobilehome, or commercial modular from the foundation system
and transportation away from the real property to which it was
formerly affixed, the manufactured home, mobilehome, or commercial
modular owner shall notify the department and the county assessor of
the intended removal of the manufactured home, mobilehome, or
commercial modular. The department shall require written evidence
that the necessary consents have been obtained pursuant to this
section and shall require application for either a transportation
permit or manufactured home, mobilehome, or commercial modular
registration, as the department may decide is appropriate to the
circumstances. Immediately upon removal, as defined in this section,
the manufactured home, mobilehome, or commercial modular shall be
deemed to have become personal property and subject to all laws
governing the same as applicable to a manufactured home, mobilehome,
or commercial modular.
(7) When an owner of a manufactured home or a mobilehome subject
to the vehicle license fee submits building plans to, and requests
building permits from, the department pursuant to paragraph (1) to
rebuild the manufactured home or mobilehome on a foundation system,
leaving only the chassis of the original home in place, the
manufactured home or mobilehome owner shall also request a transfer
from the vehicle license fee to local property taxation as specified
in subdivision (c) of Section 18119.
(c) The installation of a manufactured home or a mobilehome on a
foundation system as chattel shall be in accordance with Section
18613 and shall be deemed to meet or exceed the requirements of
Section 18613.4. This subdivision shall not be construed to affect
the application of sales and use or property taxes. No provisions of
this subdivision are intended, nor shall they be construed, to affect
the ownership interest of any owner of a manufactured home or
mobilehome.
(d) Once installed on a foundation system, a manufactured home,
mobilehome, or commercial modular shall be subject to state-enforced
health and safety standards for manufactured homes, mobilehomes, or
commercial modulars enforced pursuant to Section 18020.
(e) No local agency shall require that any manufactured home,
mobilehome, or commercial modular currently on private property be
placed on a foundation system.
(f) No local agency shall require that any manufactured home or
mobilehome located in a mobilehome park be placed on a foundation
system.
(g) No local agency shall require, as a condition for the approval
of the conversion of a rental mobilehome park to a resident-owned
park, including, but not limited to, a subdivision, cooperative, or
condominium for mobilehomes, that any manufactured home or mobilehome
located there be placed on a foundation system. This subdivision
shall only apply to the conversion of a rental mobilehome park that
has been operated as a rental mobilehome park for a minimum period of
five years.
