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Committee hears bill to change sales-tax treatment of manufactured homes; local revenue concerns raised
Summary
HB134 would change how manufactured homes are taxed by treating a portion of the purchase as labor and creating parity with stick-built housing; witnesses warned of potential local sales-tax revenue loss and committee members flagged zoning and sunset considerations.
Sales Tax Subcommittee — The subcommittee heard House Bill 134, which would modify Georgia's sales-tax treatment of manufactured homes by treating a portion of the transaction as a labor component rather than taxable retail sale.
Chairman Kemp and the bill author said the legislation aims to create tax parity between permanent manufactured homes and stick-built homes by recognizing a 40 percent labor component in the transaction. The sponsor said the change would put manufactured homes on a more similar tax footing with traditional housing and help affordability.
Nut graf: Supporters described manufactured homes as an affordable, faster-to-construct alternative that can function like stick-built housing once placed on-site and converted to real property. Opponents and local-government representatives warned of lost sales-tax revenue when manufactured homes are not converted to real property and are resold, and they urged the committee to study revenue impacts before moving forward.
Dante Handel of the Association County Commissioners of Georgia told the committee the bill, as written, would cause the state and local governments to “lose sales tax on manufactured homes not converted to real property by filing that certificate of permanent location,” and that subsequent sales would likewise omit local sales taxes. Handel also said manufactured homes generally do not appreciate like stick-built homes, a point he said affects property tax revenues for localities.
Committee members asked for data on appreciation and revenue impacts; Handel said he would research and share numbers. Members also discussed a sunset provision in line 62 of the bill that would repeal the change on June 30, 2030, and the author expressed openness to a friendly amendment depending on committee will. The presenter and witnesses noted that local zoning rules are unaffected by this bill and that municipalities retain zoning authority over manufactured housing placement.
Ending: HB134 received a first hearing; the committee did not take a vote and asked sponsors and witnesses to provide additional fiscal and valuation data ahead of a second hearing. Materials from the Manufactured Housing Association were placed in the committee packet.
