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Senate advances bill to reduce sales tax burden on manufactured homes, citing fairness to buyers
Summary
Senate Bill 51 would reduce sales tax on factory‑built/manufactured homes (45% reduction on initial sale and elimination on subsequent sales) to align their treatment more closely with site-built homes; sponsors argued fairness for first‑time buyers and low‑income owners while opponents cited revenue and level‑playing‑field concerns.
Senate Bill 51, addressing the sales tax treatment of manufactured (factory‑built or mobile) homes, produced a lengthy floor exchange over fairness, fiscal impact and market consequences.
Sponsor Senator Tempest explained that the bill would eliminate 45 percent of the sales tax on the initial sale of manufactured homes and remove sales tax on subsequent sales so these homes would be treated more in line with site‑built residences. "What this bill proposes to do is to eliminate 45% of the sales tax on the initial sale, and then eliminate the sales tax on any subsequent sales," Tempest said, framing the measure as addressing an inequity for buyers, many of whom are younger couples or retired residents on fixed incomes.
Opponents, including Senator McAllister, warned about expanding sales‑tax exemptions piecemeal and urged caution given the aggregate value of exemptions across the tax code. Senator Black and others raised concerns about losses to state and local revenues and potential impacts on municipal budgets and transit authorities.
The Senate recorded second‑reading action on SB51 and placed the bill on the third‑reading calendar; the transcript shows the second reading reported as 19 ayes, 7 nays, 3 absent.
