House passes bill to reduce sales-tax inequity for mobile homes
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Summary
The House passed S.B. 289 to tax approximately 45% of mobile-home purchase price to approximate material costs and eliminate an inequity between mobile and stick-built homes; the measure passed unanimously on the floor.
The House passed S.B. 289 on March 1, a measure designed to correct a longstanding tax inequity between mobile homes and site-built homes. Representative Valentine explained that the bill taxes approximately 45 percent of a mobile-home purchase price — intended to reflect the materials component comparable to conventional construction — so that resale of mobile homes would not be taxed repeatedly.
Supporters argued the measure removes an unfair tax burden that affects lower-income purchasers; Representative Valentine and others said property-tax reductions on pads and prior changes will mitigate increases in carrying costs. Members raised one concern from a constituent that park owners might raise lot rent to capture savings; the sponsor said property-tax relief tied to pads should prevent that immediate pass-through.
The House voted to pass S.B. 289 by a unanimous recorded vote (71–0). The bill was returned to the Senate for further action and enrollment.
