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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 Georgia Code §8-2-131) and that, under the proposal, many manufactured homes that become real property would be taxed more like stick-built houses. The bill as filed contains a sunset date (line 62 in the draft) of June 2030; the sponsor said the committee could consider removing or modifying that sunset depending on the will of the committee.
Dante Handel, representing ACCG, told the committee the current bill would reduce local sales-tax revenue because sales tax is lost when manufactured homes are converted to real property by filing a certificate of permanent location. He said subsequent sales of those homes would not generate local sales tax revenue in the same way as stick-built houses and that local governments would be unable to recover that lost revenue through property taxes, because manufactured homes generally do not appreciate like stick-built homes, in his view.
Supporters, including several committee members, argued manufactured homes are an important entry-level and workforce-housing option and said the proposed change would help affordability. Committee members asked for additional data on appreciation and local revenue impacts; the ACCG witness offered to provide research numbers. Committee members also noted that local zoning authority over manufactured housing would remain unchanged by the bill.
The committee treated HB 134 as a first hearing and accepted a single public presenter; the author indicated the item will return for a second hearing. Materials from the Manufactured Housing Association were included in the committee packet.
