Committee hears HB 134 to change sales-tax treatment for manufactured homes; local governments warn of revenue loss

The sales-tax subcommittee heard House Bill 134, a proposal to change how manufactured homes are taxed at the time of sale by excluding the tax on the labor component (the bill text treats roughly 40% of the sale as labor). The author said the change would align tax treatment more closely with stick-built housing and argued it would support affordable homeownership.

Committee members asked whether local zoning or local ordinances that restrict mobile homes would be affected; the author said local zoning authority would remain unchanged. Several members and the Manufactured Housing Association materials were cited as part of the committee packet.

Dante Handel of the Association County Commissioners of Georgia (ACCG) testified in opposition to the proposal as drafted, stating the measure would remove local sales tax revenue for manufactured homes not converted to real property by filing a certificate of permanent location and would reduce local collections on subsequent resales. Handel said manufactured homes generally do not appreciate in the same way as stick-built homes and that lost sales-tax revenue could not be fully recouped by local governments through property tax.

Members discussed the bill’s sunset provision (line 62 of the bill indicates repeal on June 30, 2030) and whether the sunset should be retained. Authors said the current draft mirrors last year’s bill and that committee consideration could include a friendly amendment on the sunset. The committee treated the hearing as the first presentation and scheduled a follow-up hearing; no vote was taken.