Manufactured homes in California are generally subject to two taxes:
If your manufactured home was originally purchased new on or after July 1, 1980, it was automatically subject to local property taxes. If purchased new prior to that date, you or the prior owner could voluntarily convert the annual vehicle license fee to local taxation. The general property tax rate throughout California is limited to 1 percent of a property's assessed value. However, depending upon where your manufactured home is located, there may be other taxes or fees necessary to pay off any voter-approved general obligation bonds or other indebtedness which could result in a slightly higher overall property tax rate.
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Although they may generally have the same meaning, for California property taxation purposes, the term mobile home is now obsolete and was changed to manufactured home in California Revenue and Taxation Code section 5801 in January 1992.
Yes. Whenever there is any change in ownership of real property or of a manufactured home, the transferee must file a Change in Ownership Death of Real Property Owner (BOE-502-D) (eForm)with the county assessor in the county where the manufactured home is located. If the property is subject to probate proceedings, the Change in Ownership Death of Real Property Owner (BOE-502-D) (eForm) must be filed prior to or at the time the inventory and appraisal is filed with the court clerk.
In all other cases in which an interest in real property is transferred by reason of death, including a transfer through a medium of a trust, the Change in Ownership Death of Real Property Owner (BOE-502-D) (eForm) must be filed with the county assessor by the trustee, if the property was held in trust, or the transferee within 150 days after the date of death.
You can request a voluntary conversion to local property taxes by contacting the California Department of Housing and Community Development (HCD) and the county assessor. You may find HCD contact information at: http://www.hcd.ca.gov[External]. Once manufactured homes have been changed to local property taxation, it is not possible to reinstate the vehicle in-lieu license fees.
Manufactured homes are subject to Proposition 13 under which the county assessor determines the base year value of a manufactured home, which is generally the market value at the time of purchase. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or 2 percent, whichever is less. Any new construction will have its own separate base year value. When the manufactured home is sold, it will be reassessed at its current fair market value and a new base year value will be established. If your manufactured home is located on land that you own, the land will be assessed separately. If you live in a tenant-owned mobile home park, a different valuation rule may apply.
The basic structure is assessable. Also assessable are all accessories, including, but not limited to: awnings, fences, windbreakers, storage cabinets, heaters, carport, water coolers, cabanas, porches, and skirting.
Yes. The first $100,000 or $150,000 of the full value of a manufactured home may be exempted from local property taxation if the manufactured home is owned by a blind or disabled veteran, or the veteran's unmarried surviving spouse, with the exempt amount depending on the annual income of the veteran. For additional qualification requirements visit the Disabled Veterans' Exemption page for more information.
Once the manufactured home has been installed on an approved permanent foundation, the entire manufactured home and all attached accessory improvements become assessable as real property and are valued in the same manner as a conventional home. The home is no longer classified as a manufactured home.
Yes. To be eligible for the Homeowners' Exemption, a person must own and occupy a dwelling as a principal place of residence on the January 1 lien date. The exemption applies to qualified manufactured homes assessed for local property taxation purposes. If manufactured homes are subject to the vehicle license fee, the exemption can be applied to land, accessories, and/or other improvements for the manufactured home that are owned by the person claiming the exemption.
A person who owns a manufactured home subject to local property tax on rented land is eligible for either the Homeowners' Exemption or the Renters' Credit, but not both.
If you do not agree with the value determined by the Assessor, or if your request did not result in a lower value, please contact the Assessor's office to learn more about and review your assessed value. You may also file a formal appeal with the Placer County Assessment Appeals Board which is an independent board established to resolve differences in property value opinions between the county assessor and property owners. In Placer County, you must file your formal appeal on an "Application for Changed Assessment" between July 2 and November 30 of the fiscal year that you are disputing.
For more information on how to file an Assessment Appeal, visit the Placer County Assessment Appeals Board's website.
Manufactured homes that are subject to local property taxation are subject to supplemental taxes.
There may be advantages, but each case should be evaluated individually. One possible advantage is that property taxes are payable in two annual installments. You may also be entitled to the $7,000 Homeowners' Property Tax Exemption or other exemptions administered by the county assessor. It should be noted, however, that if you receive the Homeowners' Exemption, you cannot apply for the Renters' Credit on your California State Income Tax return. Additionally, manufactured homes subject to local property taxation are exempt from any sales or use tax upon resale. Therefore, you may enhance the marketability of your manufactured home by voluntarily converting it to local property taxation prior to selling it. Once you convert to local property taxation, you or any subsequent owners cannot revert back to vehicle license fees.