First Substitute H.B. 142

Representative Wayne A. Harper proposes the following substitute bill:

1 MANUFACTURED HOME AND MOBILE HOME
2 AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Wayne A. Harper
6 This act modifies the Mortgage Financing Regulation Act and Motor Vehicle Act. The
7 act provides definitions and modifies the procedures and requirements for classifying
8 manufactured homes and mobile homes as real property or personal property. The act
9 repeals Part 6 of the Property Tax Act. The act makes technical changes. The act takes
10 effect on January 1, 2004.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 9-4-1202, as renumbered and amended by Chapter 30, Laws of Utah 1997
14 58-56-17, as last amended by Chapter 42, Laws of Utah 1999
15 59-2-1109, as last amended by Chapters 221 and 310, Laws of Utah 2001
16 ENACTS:
17 41-1a-1320, Utah Code Annotated 1953
18 70D-1-19, Utah Code Annotated 1953
19 70D-1-20, Utah Code Annotated 1953
20 REPEALS:
21 59-2-601, as last amended by Chapter 1, Laws of Utah 2000
22 59-2-602, as last amended by Chapter 264, Laws of Utah 1998
23 59-2-604, as last amended by Chapter 264, Laws of Utah 1998
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 9-4-1202 is amended to read:

26 9-4-1202. Legislative policy and purpose.
27 (1) It is the policy of the state that to promote the general welfare of its citizens it is
28 necessary to remedy the unsafe and unsanitary housing conditions and the acute shortage of
29 decent, safe, and sanitary dwellings for families of medium and low income, in urban and rural
30 areas. These conditions cause an increase and spread of disease and crime, and constitute a
31 menace to the health, safety, morals, and welfare of the state.
32 (2) It is the policy of the state:
33 (a) to make adequate provision of affordable housing for:
34 (i) persons of medium or low income who are unable to provide themselves with
35 decent housing including:
36 (A) elderly persons;
37 (B) persons with disabilities;
38 (C) veterans;
39 (D) special needs populations;
40 (E) low income persons living on tribal trust lands;
41 (F) persons receiving public assistance under self-sufficiency programs; or
42 (G) low income persons living in mobile homes as defined in Section [ 59-2-601 ]
43 70D-1-19 ; and
44 (ii) during limited periods, for disaster victims; and
45 (b) that the provision of safe and sanitary dwelling accommodations at rents or prices
46 that persons of medium and low income can afford will materially assist in developing more
47 desirable neighborhoods and alleviating the effects of poverty in this state.
48 (3) The purposes of this part and Part 6, Housing Authorities, are to meet these
49 problems by:
50 (a) providing low-cost housing for medium and low income persons; and
51 (b) encouraging cooperation between political subdivisions and the nonprofit sector to
52 make available low-cost housing in all areas of the state.
53 (4) It is in the public interest to use the broad financial resources and technical services
54 available to government in cooperation with the ingenuity and expertise of private enterprise to
55 alleviate this lack of safe and sanitary dwellings while stimulating local industry, according to
56 the following principles:

57 (a) The private sector, including nonprofit entities, shall be the primary source of
58 developing and providing affordable housing with state and local incentives to encourage
59 housing development.
60 (b) State money used in the development of housing shall:
61 (i) be heavily leveraged when possible;
62 (ii) be primarily invested as loans;
63 (iii) be primarily spent on housing production; and
64 (iv) give priority to needs of persons of medium or low income who are unable to
65 provide themselves with decent housing including:
66 (A) elderly persons;
67 (B) persons with disabilities;
68 (C) veterans;
69 (D) special needs populations;
70 (E) low income persons living on tribal trust lands;
71 (F) persons receiving public assistance under self-sufficiency programs; and
72 (G) low income persons living in mobile homes as defined in Section [ 59-2-601 ]
73 70D-1-19 .
74 (c) When possible based on economic feasibility and effectiveness, state housing
75 programs shall encourage:
76 (i) mixed income developments;
77 (ii) socio-economic diversity in neighborhoods; and
78 (iii) new, multifamily construction.
79 (d) State resources may be used in partnership with political subdivisions or the private
80 sector to promote affordable housing.
81 (e) Within appropriations from the Legislature, the state may provide training and
82 technical assistance to Utah's political subdivision, quasi-governmental, and nonprofit housing
83 providers.
84 Section 2. Section 41-1a-1320 is enacted to read:
85 41-1a-1320. Tax clearance required to move manufactured home or mobile home.
86 (1) A manufactured home or mobile home may not be transported by any person,
87 including its owner, unless a tax clearance has been obtained from the assessor of the county in

88 which the real property upon which the manufactured home or mobile home was last located
89 showing that all property taxes, including any interest and penalties, have been paid.
90 (2) The tax clearance described in Subsection (1):
91 (a) is proof of having paid all property taxes, interest, and penalties; and
92 (b) shall be displayed in a conspicuous place on the rear of the manufactured home or
93 mobile home so as to be plainly visible while in transit.
94 (3) (a) Any person, including the owner, who transports a manufactured home or
95 mobile home without a valid tax clearance is:
96 (i) in violation of Section 59-2-309 ; and
97 (ii) subject to the penalty provisions of Section 59-2-309 .
98 (b) In addition to the penalty provided in Subsection (3)(a), any commercial mover
99 who transports any manufactured home or mobile home without a valid tax clearance is guilty
100 of a class B misdemeanor.
101 Section 3. Section 58-56-17 is amended to read:
102 58-56-17. Fees on sale -- Escrow agents -- Sales tax.
103 (1) Each dealer shall collect and remit a fee of $75 to the division for each factory built
104 home the dealer sells that has not, as of the date of the sale, been permanently affixed to real
105 property and converted to real property as provided in Section 70D-1-20 . The fee shall be
106 payable within 30 days following the close of each calendar quarter for all units sold during
107 that calendar quarter. The fee shall be deposited in a restricted account as provided in Section
108 58-56-17.5 .
109 (2) Any principal real estate broker, associate broker, or sales agent exempt from
110 registration as a dealer under Section 58-56-16 who sells a factory built home that has not been
111 permanently affixed to real property shall close the sale only through a qualified escrow agent
112 in this state registered with the Insurance Department or the Department of Financial
113 Institutions.
114 (3) Each escrow agent through which a sale is closed under Subsection (2) shall remit
115 all required sales tax to the state.
116 Section 4. Section 59-2-1109 is amended to read:
117 59-2-1109. Indigent persons -- Deferral or abatement -- Application -- County
118 authority to make refunds.

119 (1) A person under the age of 65 years is not eligible for a deferral or abatement
120 provided for poor people under Sections 59-2-1107 and 59-2-1108 unless:
121 (a) the county finds that extreme hardship would prevail if the grants were not made; or
122 (b) the person is disabled.
123 (2) (a) An application for the deferral or abatement shall be filed on or before
124 September 1 with the county in which the property is located.
125 (b) The application shall include a signed statement setting forth the eligibility of the
126 applicant for the deferral or abatement.
127 (c) Both husband and wife shall sign the application if the husband and wife seek a
128 deferral or abatement on a residence:
129 (i) in which they both reside; and
130 (ii) which they own as joint tenants.
131 (d) A county may extend the deadline for filing under Subsection (2)(a) until December
132 31 if the county finds that good cause exists to extend the deadline.
133 (3) (a) For purposes of this Subsection (3):
134 (i) "Property taxes due" means the taxes due on a person's property:
135 (A) for which an abatement is granted by a county under Section 59-2-1107 ; and
136 (B) for the calendar year for which the abatement is granted.
137 (ii) "Property taxes paid" is an amount equal to the sum of:
138 (A) the amount of the property taxes the person paid for the taxable year for which the
139 person is applying for the abatement; and
140 (B) the amount of the abatement the county grants under Section 59-2-1107 .
141 (b) A county granting an abatement to a person under Section 59-2-1107 shall refund
142 to that person an amount equal to the amount by which the person's property taxes paid exceed
143 the person's property taxes due, if that amount is $1 or more.
144 (4) For purposes of this section:
145 (a) a poor person is any person:
146 (i) whose total household income as defined in Section 59-2-1202 is less than the
147 maximum household income certified to a homeowner's credit under Subsection 59-2-1208 (1);
148 (ii) who resides for not less than ten months of each year in the residence for which the
149 tax relief, deferral, or abatement is requested; and

150 (iii) who is unable to meet the tax assessed on the person's residential property as the
151 tax becomes due; and
152 (b) "residence" includes a mobile home as defined under Section [59-2-601 ] 70D-1-19 .
153 (5) If the claimant is the grantor of a trust holding title to real or tangible personal
154 property on which an abatement or deferral is claimed, the claimant may claim the portion of
155 the abatement or deferral under Section 59-2-1107 or 59-2-1108 and be treated as the owner of
156 that portion of the property held in trust for which the claimant proves to the satisfaction of the
157 county that:
158 (a) title to the portion of the trust will revest in the claimant upon the exercise of a
159 power:
160 (i) by:
161 (A) the claimant as grantor of the trust;
162 (B) a nonadverse party; or
163 (C) both the claimant and a nonadverse party; and
164 (ii) regardless of whether the power is a power:
165 (A) to revoke;
166 (B) to terminate;
167 (C) to alter;
168 (D) to amend; or
169 (E) to appoint;
170 (b) the claimant is obligated to pay the taxes on that portion of the trust property
171 beginning January 1 of the year the claimant claims the abatement or deferral; and
172 (c) the claimant meets the requirements under this part for the abatement or deferral.
173 (6) The commission shall adopt rules to implement this section.
174 (7) Any poor person may qualify for:
175 (a) the deferral of taxes under Section 59-2-1108 ;
176 (b) if the person meets the requisites of this section, for the abatement of taxes under
177 Section 59-2-1107 ; or
178 (c) both:
179 (i) the deferral described in Subsection (7)(a); and
180 (ii) the abatement described in Subsection (7)(b).

181 Section 5. Section 70D-1-19 is enacted to read:
182 70D-1-19. Definitions.
183 As used in this part:
184 (1) "Manufactured home" means a transportable factory built housing unit constructed
185 on or after June 15, 1976, according to the National Manufactured Housing Construction and
186 Safety Standards Act of 1974, in one or more sections, which, in the traveling mode, is eight
187 body feet or more in width or 40 body feet or more in length, or when erected on site, is 400 or
188 more square feet, and which is built on a permanent chassis and designed to be used as a
189 dwelling with or without a permanent foundation when connected to the required utilities, and
190 includes the plumbing, heating, air-conditioning, and electrical systems.
191 (2) "Mobile home" means a transportable factory built housing unit built prior to June
192 15, 1976, in accordance with a state mobile home code which existed prior to the National
193 Manufactured Housing Construction and Safety Standards Act of 1974.
194 (3) "Permanently affixed" means anchored to, and supported by, a permanent
195 foundation or installed in accordance with an installation standard as defined in Subsection
196 58-56-3 (8).
197 Section 6. Section 70D-1-20 is enacted to read:
198 70D-1-20. Qualification of manufactured home or mobile home as improvement
199 to real property -- Requirements -- Removal from property.
200 (1) Except as provided in this section, a manufactured home or mobile home shall be
201 considered personal property.
202 (2) Notwithstanding Subsection (1), if the requirements of this section are met, a
203 manufactured home or mobile home shall be:
204 (a) considered to be an improvement to real property; and
205 (b) considered as real property.
206 (3) A manufactured home or mobile home shall be considered to be an improvement to
207 real property if:
208 (a) the manufactured home or mobile home is permanently affixed to real property;
209 (b) the person seeking to have the manufactured home or mobile home considered to
210 be an improvement to real property:
211 (i) owns the manufactured home or mobile home; and

212 (ii) (A) owns the real property to which the manufactured home or mobile home is
213 permanently affixed; or
214 (B) leases the real property to which the manufactured home or mobile home is
215 permanently affixed and the real property is financed in accordance with Subsection (4); and
216 (iii) meets the requirements of Subsections (5) and (6); and
217 (c) in accordance with Subsection (7), the following are recorded by the county
218 recorder:
219 (i) the affidavit of affixture described in Subsection (7); and
220 (ii) the receipt of surrender described in Subsection (7).
221 (4) For purposes of Subsection (3)(b)(ii)(B), a manufactured home or mobile home
222 shall be financed in accordance with the guidelines established by:
223 (a) the Federal Home Loan Mortgage Corporation;
224 (b) the Federal National Mortgage Association;
225 (c) the United States Department of Agriculture; or
226 (d) another entity that requires as part of the entity's financing program restrictions:
227 (i) on:
228 (A) ownership; and
229 (B) actions affecting title and possession; and
230 (ii) if the restrictions described in Subsection (4)(d)(i) are similar to restrictions
231 imposed by one or more of the entities described in Subsections (4)(a) through (c).
232 (5) (a) An owner of a manufactured home or mobile home seeking to have the
233 manufactured home or mobile home considered to be an improvement to real property and
234 considered real property shall complete an affidavit of affixture.
235 (b) An affidavit of affixture described in Subsection (5)(a) shall contain:
236 (i) the vehicle identification numbers of the manufactured home or mobile home;
237 (ii) the legal description of the real property to which the manufactured home or mobile
238 home is permanently affixed;
239 (iii) a statement certified by the assessor of the county in which the manufactured home
240 or mobile home is located that the owner of the manufactured home or mobile home:
241 (A) is not required to pay personal property tax in this state on the manufactured home
242 or mobile home; or

243 (B) if the manufactured home or mobile home is subject to personal property tax in this
244 state, has paid all current and prior year personal property taxes assessed on the manufactured
245 home or mobile home;
246 (iv) a description of any security interests in the manufactured home or mobile home;
247 and
248 (v) a receipt of surrender issued by the Motor Vehicle Division of the State Tax
249 Commission in accordance with Subsection (6).
250 (6) (a) The Motor Vehicle Division of the State Tax Commission shall issue a receipt
251 of surrender under Subsection (5)(b)(v) if an owner described in Subsection (5) surrenders to
252 the Motor Vehicle Division the:
253 (i) manufacturer's original certificate of origin; or
254 (ii) title to the manufactured home or mobile home.
255 (b) After issuing the receipt of surrender in Subsection (6)(a), the Motor Vehicle
256 Division shall maintain a permanent record of:
257 (i) the receipt of surrender; and
258 (ii) the certificate or title described in Subsection (6)(a)(ii).
259 (7) (a) An owner shall present to the county recorder:
260 (i) the affidavit of affixture described in Subsection (5); and
261 (ii) the receipt of surrender described in Subsection (6).
262 (b) A county recorder who receives an affidavit of affixture and receipt of surrender
263 described in Subsection (7)(a) shall record the receipt of surrender and affidavit of affixture.
264 (c) An owner of property described in Subsection (5) shall provide a copy of the
265 recorded affidavit of affixture to:
266 (i) the Motor Vehicle Division of the Tax Commission; and
267 (ii) the assessor of the county in which the manufactured home or mobile home is
268 located.
269 (8) A lien on the manufactured home or mobile home that is considered to be an
270 improvement to real property shall be perfected in the manner provided for the perfection of a
271 lien on real property.
272 (9) If a manufactured home or mobile home owner separates the manufactured home or
273 mobile home from the real property, the owner may acquire a new title by submitting to the

274 Motor Vehicle Division of the State Tax Commission:
275 (a) a recorded affidavit that the manufactured home or mobile home has been removed
276 from the real property; and
277 (b) an application for a new title.
278 (10) The determination of whether a manufactured home or mobile home is considered
279 real property or personal property under this section may not be considered in determining
280 whether the manufactured home or mobile home is real property or personal property for
281 purposes of taxation under Title 59, Chapter 2, Property Tax Act.
282 Section 7. Repealer.
283 This act repeals:
284 Section 59-2-601, Definitions.
285 Section 59-2-602, Qualification of manufactured home or mobile home as
286 improvement to real property -- Requirements -- Removal from property.
287 Section 59-2-604, Tax clearance required to move manufactured home or mobile
288 home.
289 Section 8. Effective date.
290 This act takes effect on January 1, 2004.