SENATE BILL REPORT

EHB 1493

As Reported by Senate Committee On:

Financial Institutions, Housing & Insurance, April 2, 2013

Title: An act relating to the property taxation of mobile homes and park model trailers.

Brief Description: Concerning the property taxation of mobile homes and park model trailers.

Sponsors: Representatives Springer, Warnick, Hansen, Short, Orcutt, Tharinger, Seaquist, Zeiger, Hunt, Wilcox, Nealey, Morrell, Moscoso, Liias, Stanford, Hudgins, Green, Pettigrew, Moeller, Appleton, Ryu, Bergquist and Stonier.

Brief History: Passed House: 3/05/13, 96-0.

Committee Activity: Financial Institutions, Housing & Insurance: 3/14/13, 4/02/13 [DPA].

Majority Report: Do pass as amended.

Signed by Senators Hobbs, Chair; Mullet, Vice Chair; Benton, Ranking Member; Fain and Nelson.

Staff: Alison Mendiola (786-7483)

Background: Manufactured/mobile home communities are governed by the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA) which outlines the rights and responsibilities of manufactured/mobile home landlords and tenants

Under MHLTA, an abandoned home means the tenant has defaulted in rent and by absence, words, or actions, reasonably indicates the intention not to continue tenancy.

If a landlord of a manufactured/mobile home community takes ownership of a mobile home or park model trailer with the intent to resell or rent the home after it has been abandoned; or a final judgment for restitution of the premise has been executed in favor of the landlord, any outstanding taxes become the responsibility of the landlord.

Summary of Bill (Recommended Amendments): If a landlord in a manufactured/mobile home community submits an affidavit to the county assessor indicating that the landlord has taken ownership of a mobile home or park trailer with the intent to resell or rent after the home is abandoned or a final judgment for restitution of the premises has been executed in favor of the landlord, and the most current assessed value of the home is $8,000 or less, the landlord is not liable for any outstanding taxes, including interest and penalties on that home. The owner of the mobile/manufactured home is responsible for all future taxes.

EFFECT OF CHANGES MADE BY FINANCIAL INSTITUTIONS, HOUSING & INSURANCE COMMITTEE (Recommended Amendments): It is clarified that after any outstanding taxes are forgiven, the owner of the mobile/manufactured home is responsible for all future taxes. The term mobile home is updated to include manufactured homes. The owner of the mobile/manufactured home is responsible for all future taxes.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Engrossed House Bill: PRO: This is the second year for this bill which would provide an opportunity for some mobile home parks to retain affordable housing instead of just trashing it. It is much better if the home is kept on the tax rolls and the older unit is refurbished and rented. This will provide an incentive for owners to keep an older home in the park. This bill is the same as the Senate version. The bill passed the House unanimously.

CON: This is a special interest bill – it puts mobile home park owners ahead of special purpose taxing districts. The opportunity to remove outstanding taxes is not available on private land. If park owners are benefitting from the sale or rent, then they should pay the taxes since they are getting an income. It is unclear what to do if the value of the home is more than $8,000.

Persons Testifying: PRO: Representative Ormsby, prime sponsor; Kyle Woodring, Manufactured Housing Communities of WA.

CON: Shawn Meyers, WA Assn. of County Treasurers; Monty Cobb, WA Assn. of County Officials.