BILL AS INTRODUCED H.792

2000 Page 6

H.792

Introduced by Representatives Lafayette of Burlington, Costello of Brattleboro and Milkey of Brattleboro

Referred to Committee on

Date:

Subject: Taxation; property tax; mobile homes

Statement of purpose: This bill proposes to ensure that shareholders of mobile home limited equity cooperatives are not taxed twice for their property. This bill also proposes to eliminate the requirement to pay assessed real and personal property taxes upon the sale or transfer of a mobile home if the sale or transfer does not result in removal of the mobile home from the town in which it is listed. The bill would also permit the abatement of taxes upon mobile homes moving from a town as the result of the closure or change in use of a mobile home park.

AN ACT RELATING TO TAXATION OF MOBILE HOMES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 11 V.S.A. § 1610 is added to read:

§ 1610. SEPARATE TAXATION; MOBILE HOME COOPERATIVES

Each unit in a mobile home limited equity cooperative under proprietary lease, together with any improvements thereon and together with the proprietary lessee’s cooperative interest in the common areas and facilities owned by the cooperative, shall be considered to be a parcel, and shall be subject to separate assessment and taxation as real property by each assessing unit and special district for all types of taxes authorized by law, including special ad valorem levies and special assessments. Each unit held by the cooperative not under proprietary lease, together with any improvements thereon and together with the remaining and unissued cooperative interest in the common areas and facilities owned by the cooperative, may be combined and treated as one parcel for purposes of assessment and taxation at the discretion of the listers, and shall be subject to assessment and taxation as real property by each assessing unit and special district for all types of taxes authorized by law. Except for the units described in this section, no cooperative property, including common areas and facilities owned by the cooperative, shall be deemed to be a parcel subject to separate assessment and taxation.

Sec. 2. 32 V.S.A. § 5079 is amended to read:

§ 5079. SALE OR TRANSFER OF MOBILE HOMES; COLLECTION OF

TAXES

(a) An owner of a mobile home as defined in 9 V.S.A. § 2601 or 10 V.S.A. § 6201, except those held solely for sale by a manufacturer, distributor or dealer that are stored or displayed on a sales lot and are not connected to utilities, shall file with the clerk of the municipality in which it is located the mobile home uniform bill of sale prescribed in 9 V.S.A. § 2602(c).

(b) An owner of a mobile home, except those held for sale by a manufacturer, distributor or dealer that are stored or displayed on a sales lot and are not connected to utilities, may not sell, trade or transfer remove the home from the town in which it is listed without a mobile home uniform bill of sale endorsed by the clerk of the municipality in which it is located indicating that all property taxes assessed with regard to the mobile home, but not the mobile home site, have been paid. Where ownership of an abandoned mobile home is transferred pursuant to a court order issued pursuant to 10 V.S.A. §6249, the order shall constitute a release of the mobile home from any lien for penalties, interest and taxes due the town to the date of the bill of sale, prorated as of that date. Where ownership of an abandoned mobile home is transferred pursuant to 10 V.S.A. §6249 to an owner who certifies to the court that the mobile home will be disposed of, the order shall constitute a release of the mobile home from any lien for taxes due the town and an authorization to remove the mobile home from the town for the purpose of disposal.

(c) Any person, including the owner of a mobile home or his agent, who sells, transfers or removes a mobile home from the town in which it was listed without having in his or her possession a mobile home uniform bill of sale endorsed by the clerk of the municipality where the mobile home was located as required by subsection (b) of this section shall be fined not more than $300.00.

(d) Mobile homes sold, transferred or A mobile home removed from a town without a mobile home uniform bill of sale endorsed by the clerk of the municipality where the mobile home was located as required by subsection (b) of this section may be taken into possession by any sheriff, deputy sheriff, constable or police officer, or by the treasurer or tax collector of the town in which the mobile home was last listed if known, or by the commissioner of taxes if that town is unknown. A mobile home taken into possession under this section by an officer other than the collector of taxes shall be delivered promptly to the collector of taxes of the town in which the mobile home was last listed. In taking possession, the authorized officer may proceed without judicial process only in the event that the taking of possession can be done without breach of the peace. Proceedings for collection of the taxes assessed against and due with respect to the mobile home shall then be conducted in accordance with subchapter 9 of chapter 133 of this title.

(e) Taxes assessed against a mobile homes home shall be considered due for purposes of this section as of the date of sale, transfer or removal of the mobile home from the town in which the mobile home was last listed, and the owner shall be liable for fees provided for in section 1674 of this title from the date of removal.

(f) The treasurer or tax collector of any town in which a mobile home is sold, transferred, or from which a mobile home is removed, without an endorsed mobile home uniform bill of sale required by subsection (b) of this section, may notify the director of the division of property valuation and review of the removal giving a description of the mobile home by serial or other number if known. If the director is notified of the seizure of a mobile home as provided in subsection (d) of this section, he or she shall immediately notify the treasurer or tax collector of the town, if known, in which the mobile home was last listed on the grand list.

(g) Any filing of a A mobile home uniform bill of sale required by subsection (a) of this section and 9 V.S.A. § 2602 shall be done filed within 10 days of the date on which a mobile home is located in moved into a new municipality.

Sec. 3. 9 V.S.A. § 2602 is amended to read:

§ 2602. SALE,; PRICE DISCLOSURE; UNIFORM MOBILE HOME BILL

OF SALE

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(c) No mobile home shall be moved over the highways of this state unless the operator of the vehicle hauling such mobile home has in his possession a copy of the mobile home uniform bill of sale endorsed by the town clerk of the town in which the mobile home was situated on the day of the move last listed, identifying the mobile home or, if no sale is involved, a release signed by that clerk stating that all real and personal property taxes have been paid pursuant to 32 V.S.A. § 5079(e). The mobile home uniform bill of sale shall contain the make, model, serial, size, year manufactured and location of each mobile home. It shall give the name and address of the owner of the property and whether the property is subject to a security interest and shall be substantially in the following form:

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Sec. 4. 24 V.S.A. § 1535 is amended to read:

§ 1535. ABATEMENT

(a) The board may abate in whole or part taxes, interest, and collection fees accruing to the town in the following cases:

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(9) taxes upon a mobile home moved from the town during the tax year as a result of a change in use of the mobile home park land or parts thereof, or closure of the mobile home park in which the mobile home was sited, pursuant to 10 V.S.A. § 6237.

Sec. 5. EFFECTIVE DATE

This act shall take effect upon passage and shall apply to tax assessments for 2000 and after, and shall apply to sales, transfers, trades, and removal on or after July 1, 2000.

VT LEG 118160.3