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Committee hears bill to change sales-tax treatment of manufactured homes; local governments warn of revenue loss
Summary
House Bill 134 would change the sales-tax treatment of manufactured homes, applying a 40% labor component that sponsors say creates parity with stick-built homes; local government representatives warned the change could reduce local sales-tax revenue.
House Bill 134, presented in the sales-tax subcommittee, would change the sales-tax treatment of manufactured homes by exempting the tax on a 40% labor component (as described in the bill) to bring tax treatment closer to that of stick-built homes. The sponsor said the change aims to improve affordability and parity between factory-built and site-built housing.
The bill’s author told the committee the statutory language aligns with long-standing code definitions (the bill cites the manufactured-home definition in…
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