Frequently Asked Questions: Property Taxes

My manufactured home is currently licensed by the California Department of Housing and Community Development. Are there any advantages to converting to local property taxation?

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.

How can I change the taxation of my manufactured home from license fees to the local property tax system?

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/. Once manufactured homes have been changed to local property taxation, it is not possible to reinstate the vehicle in-lieu license fees.

For more details visit the HCD website.http://www.boe.ca.gov/proptaxes/faqs/manfacthomes.htm#4

 

Leave a Reply