A Primer on Mobile home Property TaxationSubmitted by your neighbor Wendy

A question came up at our KLCC meeting in December 2021: Why do some homeowners pay to register their homes and some pay state property tax on their homes?

The best information on this topic can be found on the California Board of Equalization website (boe.ca.gov). A summary follows, with my disclaimer that I’ve done my best to present some basic information but any decisions you make should only occur after researching the more detailed information at either of the websites listed in this article. Before July 1, 1980 mobile homes were considered to be similar to any other vehicle on the road, and therefore subject to licensing (registration) fees. A law was passed to change the status of new mobile homes sold after this date such that new mobile homes would be automatically subject to property tax assessment and payment. (Note: This is different than the property tax that applies to the land—that is paid by the owner of the land, not by the owner of the mobile home that sits on the land.) The initial assessed tax for the mobile home is based on 1% of the market value of the home when first sold and is increased by 2% per year or an amount based on the annual inflation rate, whichever is less. A new base tax is established at the time of the sale. If you have questions about the amount of your tax rate you can call the County-Assessed Property Division at 1-916-274-3350.

Owners of mobile homes built and sold prior to July 1, 1980, continue to be subject to licensing (registration) fees and NOT property taxes. The registration fee (also referred to as a non-taxable in-lieu fee) is paid to the Housing and Community Development department (HCD). In the past, if you were delinquent in paying this registration fee on time (within 120 days of it being due), it would automatically be converted to a property tax obligation. This is no longer true but there may be late fees added to delinquent payments. Additional information can be found at www.countytreasurer.org online. This site indicates that if you sell your mobile home and currently pay the in-lieu (registration) fee, the new owner will also pay this fee and NOT property tax. However, the buyer will need to pay sales tax on the home so it may be helpful to convert from an in-lieu fee to property taxation prior to selling your mobile home to decrease the total amount a buyer has to pay. If a mobile home is converted to property taxation it cannot be returned to in-lieu fee status. The number to call to convert to property taxation is 1-800-952-8356. There are also some tax exemptions for mobile homeowners, which you can ask about by calling the County Assessor at 1-800-746-1544.