HBA-EDN H.B. 468 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 468 By: Solomons Ways & Means 2/26/2001 Introduced BACKGROUND AND PURPOSE Tax assessors and collectors often find it difficult and time-consuming to collect delinquent property taxes on manufactured homes because of the mobility of these homes. Sales of manufactured homes frequently take place between individuals without going through a title company; therefore a purchaser may move the home freely with no knowledge of any additional tax burden incurred. Collecting current year taxes from the previous owner who owes taxes may be difficult because the owner cannot be found. House Bill 468 provides that the tax assessor-collector determine that there are no unpaid ad valorem taxes due to any taxing unit before a permit for moving a manufactured home is issued and eliminates the procedure of filing and releasing liens. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 468 amends the Transportation Code to provide that an application for a permit to transport a manufactured house must be accompanied by a certificate from the tax assessor-collector that states that there are no unpaid ad valorem taxes due to any taxing unit in which the manufactured house is located if transporting the manufactured house from a location other than the location of the manufacturer or the retailer of the manufactured house pursuant to the original sale, exchange, or lease-purchase of the manufactured house to a consumer. The bill also sets forth guidelines for applications for permits if the manufactured house is not listed on the most recent tax roll of each taxing unit in which it is located. The bill deletes the provisions pertaining to permits for manufactured homes being moved to sites where the manufactured home has been or will be occupied as a dwelling, as well as the provisions relating to sending such a permit to the tax assessor-collector and the chief appraiser (Sec. 623.093). The bill provides that a person commits a Class C misdemeanor if the person violates the above provisions relating to transporting a manufactured house, except that it is a misdemeanor offense punishable by $500 if it involves the movement of a manufactured house over a highway, road, or street in this state without a permit issued by the Texas Department of Transportation (Sec. 623.104). H.B. 468 amends the Texas Manufactured Housing Standards Act to prohibit the Texas Department of Housing and Community Affairs from suspending, revoking, or refusing to issue a document of title unless a local tax lien was filed before September 1, 2001, and recorded pursuant to provisions regarding the recording of tax liens on manufactured homes only as these provisions existed on the date the lien was filed, and that the lien has not been extinguished (Sec. 19). H.B. 468 amends the Tax Code to remove the provisions regarding recording tax liens on manufactured homes, except those provisions relating to issuance of a tax certificate on payment of the taxes, penalties, and interest associated with a valid tax lien filed before September 1, 2001. The bill provides that a bona fide purchaser for value or the holder of a lien, recorded on the manufactured home document of title, is not required to pay any taxes imposed in a tax year that begins before January 1, 2001, or penalties or interest on those taxes except for each year for which a valid tax lien was duly filed and recorded pursuant to provisions regarding recording tax liens on manufactured homes as the provisions existed on the date the lien was filed, and each year for which the owner of the manufactured home had constructive notice of the taxes pursuant to provisions regarding recording tax liens on manufactured homes as the provisions existed before September 1, 2001. The effect and priority of a tax lien that attaches to secure the payment of taxes imposed on a manufactured home in a tax year that begins on or after January 1, 2001, are those established by provisions relating to tax liens and the priority of tax liens over other property interests (Secs. 32.015 and 32.03). EFFECTIVE DATE September 1, 2001.