Mobile homes in California are taxed either through local county tax systems or through vehicle license fees paid to the State in lieu of property taxes.
Before July 1, 1980, mobile homes that were not on permanent foundations were treated as motor vehicles and were taxed just like automobiles or trucks through "in-lieu" license fees. In 1980 the State Legislature adopted the "Mobilehome Property Tax Law," which provides for a system of taxing all new and most used mobile homes purchased on or after July 1, 1980, in a manner similar to conventional homes.
In broad terms a mobile home is a structure, transportable in one or more sections, designed and equipped to contain one or more dwelling units, and to be used with or without a foundation system. Specifically, any trailer coach that is more than eight feet wide or forty feet long, or one that requires a permit to move on the highway is considered a mobile home.
Recreational vehicles, as well as buses and prefabricated housing units are not considered mobile homes.
For purposes of taxation, mobile homes affixed to the land on a permanent foundation are not considered "mobile" homes, but are viewed instead as modular housing, and as such have always been taxed in the same way as conventional homes. Mobile homes on permanent foundations are subject to supplemental taxes when appropriate and are also entitled to all the benefits and exemptions due any homeowner. Please see our pamphlets on understanding property taxes, supplemental property taxes, and delinquent property taxes for further information on the taxation of real estate.
If your mobile home is not attached to a permanent foundation (for example, if your mobile home is in a mobile home park), please read on.
If your mobile home was originally purchased new on or after July 1, 1980, it was automatically subject to local property taxes. Also, if the license fees on your mobile home, regardless of when it was originally purchased, became delinquent on or before May 31, 1984, your mobile home was automatically converted to the local property tax system (delinquent license fees no longer cause automatic transfer to local property taxation).
There may be advantages to changing from in-lieu license fees to local property taxation, but each case has to be evaluated individually.
One possible advantage is that property taxes are payable in two annual installments. You also may be entitled to the $7,000 Homeowner Exemption or other exemptions administered by the County Assessor. It should be noted that if you receive the Homeowner Exemption, you cannot apply for the Renter's Credit on your California State Income Tax Return. In addition to County exemption, you may be eligible for tax assistance and postponement programs offered by the State of California. For more information about eligibility requirements for the Homeowner Exemption or contact us at (707) 565-1886.
It's important to note that mobile homes subject to local property taxation are exempt from any sales or use tax. You may, therefore, enhance the marketability of your mobile home by voluntarily converting it to local property taxation prior to selling it. But once you convert to local property taxation, you can't revert back to vehicle license fees.
You can request a voluntary conversion to local property taxes by calling (800) 952-8356 or writing to the California Department of Housing and Community Development at:
State of California
Department of Housing and Community Development
P.O. Box 2111
6007 Folsom Boulevard
Sacramento, CA 95810Website: http://www.hcd.ca.gov
Unless you request voluntary conversion to local property taxation, you will be able to continue paying license fees. If you sell your mobile home, the new owner will also pay license fees unless he or she requests conversion (remember that mobile homes subject to in-lieu license fees are also subject to sales or use tax when sold).
Mobile home title issuance is administered by the state's Department of Housing and Community Development. That department cannot transfer title of a used mobile home subject to local property taxes without a tax clearance from the county tax collector of the county in which the mobile home is situated. In Sonoma County, please contact the Sonoma County Tax Collector to obtain a Mobile home Tax Clearance Certificate. Please note that any outstanding taxes owed must be paid before a Tax Clearance Certificate can be issued.
Remember that this type of title transfer applies only to mobile homes not on permanent foundations. If your mobile home is attached to a permanent foundation, title transfers are handled by the County Recorder in the same manner as for conventional homes.
Whether or not you have to pay supplemental taxes if you purchase a used mobile home or modify your own mobile home by construction depends on what type of taxes you currently are paying. Mobile homes that are subject to local property taxation are subject to supplemental taxes. Mobile homes that are subject to vehicle license fees are not subject to supplemental taxes.
Property tax amounts on your mobile home are determined in accordance with California state law and is limited to $1 per $100 of assessed value of your mobile home, except for certain direct assessments applied by cities and districts and special taxes approved by local voters. The Assessor determines the assessed value of your mobile home, which is generally the cash or market value at the time of purchase. This value increases not more than 2 percent per year until the mobile home is sold, at which time it must be reassessed. If your mobile home is parked on land that you own, the land will be assessed and taxed separately.
For more information or to discuss further questions you may have, please visit our offices or contact us by email or by phone (707) 565-1888 or (800) 244-1034.
Important Notice:
The staff of the Clerk-Recorder-Assessor's Office are forbidden by California legal codes to practice law or provide legal advice; this prohibition includes giving advice about what forms you might need or how you should fill them out.