HB1285 97TH GENERAL ASSEMBLY

LRB097 06559 HLH 46644 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1285

Introduced 02/08/11, by Rep. Dave Winters

SYNOPSIS AS INTRODUCED:

See Index

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2012, the tax imposed under the Acts on new mobile homes or new manufactured homes to be located outside of a mobile home park shall be calculated against 40% of the selling price of the home and against 100% of the selling price of building materials used. Provides that there shall be no tax on resale of homes located outside or inside of a mobile home park. Amends the Property Tax Code and the Manufactured Home Installation Act. Provides that the owner of a mobile home or manufactured home that is located outside of a mobile home park may file a request with the county assessor that the home be classified, assessed, and taxed as real property. Amends the Mobile Home Local Services Tax Act. Removes certain provisions concerning recording of titles and certificates of origin. Amends the Abandoned Mobile Home Act. Provides that a mobile home abandoned outside of a mobile home park must be treated like other real property for condemnation purposes. Amends the Property Tax Code and the Mobile Home Local Services Tax Act to provide that mobile homes and manufactured homes that are located outside of mobile home parks and are taxed during the tax year ending on December 31, 2011 must continue to be taxed under that Act. Provides that a mobile home or manufactured home that is located in a mobile home park may not be taxed as real property until the mobile home or manufactured home is relocated to a different parcel of land outside of a mobile home park. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by adding Section 3-3 as follows:

(35 ILCS 105/3-3 new)

Sec. 3-3. Mobile home sales. Beginning January 1, 2012, the tax imposed under this Act on new mobile homes or new manufactured homes to be located outside of a mobile home park shall be calculated against 40% of the selling price of the home and against 100% of the selling price of any other building materials used in the installation and set up of the home. This provision does not change the current calculation of the use tax for new mobile homes or manufactured homes to be located inside of a mobile home park. There shall be no use tax on the resale of mobile homes or manufactured homes located outside or inside mobile home parks.

Section 10. The Retailers' Occupation Tax Act is amended by adding Section 5m as follows:

(35 ILCS 120/5m new)

Sec. 5m. Mobile home sales. Beginning January 1, 2012, the tax imposed under this Act on new mobile homes or new manufactured homes to be located outside of a mobile home park shall be calculated against 40% of the selling price of the home and against 100% of the selling price of any other building materials used in the installation and set up of the home. This provision does not change the current calculation of the retailers' occupation tax for new mobile homes or manufactured homes to be located inside of a mobile home park. There shall be no retailers' occupation tax on the resale of mobile homes or manufactured homes located outside or inside mobile home parks.

Section 15. The Property Tax Code is amended by changing Section 1-130 as follows:

(35 ILCS 200/1-130)

Sec. 1-130. Property; real property; real estate; land; tract; lot.

(a) The land itself, with all things contained therein, and also all buildings, structures and improvements, and other permanent fixtures thereon, including all oil, gas, coal, and other minerals in the land and the right to remove oil, gas and other minerals, excluding coal, from the land, and all rights and privileges belonging or pertaining thereto, except where otherwise specified by this Code. Not included therein are low-income housing tax credits authorized by Section 42 of the Internal Revenue Code, 26 U.S.C. 42.

(b) Notwithstanding any other provision of law, mobile homes and manufactured homes that (i) are located outside of mobile home parks and (ii) are taxed under the Mobile Home Local Services Tax Act during the tax year ending on December 31, 2011 on the effective date of this amendatory Act of the 96th General Assembly shall continue to be taxed under the Mobile Home Local Services Tax Act and shall not be classified, assessed, and taxed as real property until the home is sold or transferred or until the home is relocated to a different parcel of land outside of a mobile home park. If a mobile home described in this subsection (b) is sold, transferred, or relocated to a different parcel of land outside of a mobile home park, then the home shall be classified, assessed, and taxed as real property. Mobile homes and manufactured homes that are located outside of mobile home parks and are classified, assessed, and taxed as real property during the tax year ending on December 31, 2011 on the effective date of this amendatory Act of the 96th General Assembly shall continue to be classified, assessed, and taxed as real property. If a mobile or manufactured home that is located outside of a mobile home park is relocated to a mobile home park, it must be considered chattel and must be taxed according to the Mobile Home Local Services Tax Act. The owner of a mobile home or manufactured home that is located outside of a mobile home park may file a request with the county assessor that the home be classified, assessed, and taxed as real property. A mobile home that is required to be taxed as real property must be taxed as real property regardless of whether or not a certificate of title has been issued with respect to that mobile home.

(c) Mobile homes and manufactured homes that are located in mobile home parks must be considered chattel and must be taxed according to the Mobile Home Local Services Tax Act. A mobile home or manufactured home that is located in a mobile home park may not be taxed as real property until the mobile home or manufactured home is relocated to a different parcel of land outside of a mobile home park.

(d) If the provisions of this Section conflict with the Illinois Manufactured Housing and Mobile Home Safety Act, the Mobile Home Local Services Tax Act, the Mobile Home Park Act, or any other provision of law with respect to the taxation of mobile homes or manufactured homes located outside of mobile home parks, the provisions of this Section shall control.

(Source: P.A. 96-1477, eff. 1-1-11.)

Section 20. The Mobile Home Local Services Tax Act is amended by changing Sections 1 and 4 as follows:

(35 ILCS 515/1) (from Ch. 120, par. 1201)

Sec. 1. (a) Except as provided in subsections (b) and (c), as used in this Act, "manufactured home" means a factory-assembled, completely integrated structure designed for permanent habitation, with a permanent chassis, and so constructed as to permit its transport, on wheels temporarily or permanently attached to its frame, and is a movable or portable unit that is (i) 8 body feet or more in width, (ii) 40 body feet or more in length, and (iii) 320 or more square feet, constructed to be towed on its own chassis (comprised of frame and wheels) from the place of its construction to the location, or subsequent locations, at which it is installed and set up according to the manufacturer's instructions and connected to utilities for year-round occupancy for use as a permanent habitation, and designed and situated so as to permit its occupancy as a dwelling place for one or more persons. The term shall include units containing parts that may be folded, collapsed, or telescoped when being towed and that may be expected to provide additional cubic capacity, and that are designed to be joined into one integral unit capable of being separated again into the components for repeated towing. The term excludes campers and recreational vehicles. Mobile homes and manufactured homes in mobile home parks must be assessed and taxed as chattel. Mobile homes and manufactured homes outside of mobile home parks must be assessed and taxed as real property. The words "mobile home" and "manufactured home" are synonymous for the purposes of this Act. Any such structure located outside of a mobile home park shall not be construed as chattel, but must be assessed and taxed as real property as defined by Section 1-130 of the Property Tax Code. All mobile homes located inside mobile home parks must be considered as chattel and taxed according to this Act. Mobile homes located on a dealer's lot for resale purposes or as a temporary office shall not be subject to this tax.

(b) Mobile homes and manufactured homes that (i) are located outside of mobile home parks and (ii) are taxed under this Act during the tax year ending on December 31, 2011 on the effective date of this amendatory Act of the 96th General Assembly must continue to be taxed under this Act and shall not be classified, assessed, and taxed as real property until the home is sold, transferred, or relocated to a different parcel of land outside of a mobile home park. If a mobile home described in this subsection (b) is sold, transferred, or relocated to a different parcel of land outside of a mobile home park, then the home must be classified, assessed, and taxed as real property. Mobile homes and manufactured homes that are located outside of mobile home parks and are classified, assessed, and taxed as real property during the tax year ending on December 31, 2011 on the effective date of this amendatory Act of the 96th General Assembly must continue to be classified, assessed, and taxed as real property. If a mobile or manufactured home that is located outside of a mobile home park is relocated to a mobile home park, the home must be considered chattel and must be taxed according to the Mobile Home Local Services Tax Act. The owner of a mobile home or manufactured home that is located outside of a mobile home park may file a request with the county assessor that the home be classified, assessed, and taxed as real property.

(c) Mobile homes and manufactured homes that are located in mobile home parks must be considered chattel and must be taxed according to this Act. A mobile home or manufactured home that is located in a mobile home park may not be taxed as real property until the mobile home or manufactured home is relocated to a different parcel of land outside of a mobile home park.

(Source: P.A. 96-1477, eff. 1-1-11.)

(35 ILCS 515/4) (from Ch. 120, par. 1204)

Sec. 4. The owner of each inhabited mobile home located in this State, but not located inside of a mobile home park, on the effective date of this amendatory Act of the 96th General Assembly shall, within 30 days after such date, file with the township assessor, if any, or with the Supervisor of Assessments or county assessor if there is no township assessor, or with the county assessor in those counties in which a county assessor is elected pursuant to Section 3-45 of the Property Tax Code, a mobile home registration form containing the information hereinafter specified and record a signed copy of the title or certificate of origin in the county where the home is located or surrender the signed title or certificate of origin to be held by the county until such time as the home is to be removed from the county. Mobile home park operators shall forward a copy of the mobile home registration form provided in Section 12 of "An Act to provide for, license and regulate mobile homes and mobile home parks and to repeal an Act named herein", approved September 8, 1971, as amended, to the township assessor, if any, or to Supervisor of Assessments or county assessor if there is no township assessor, or to the county assessor in those counties in which a county assessor is elected pursuant to Section 3-45 of the Property Tax Code, within 5 days of the entry of a mobile home into such park. The owner of a mobile home not located in a mobile home park shall, within 30 days after initial placement of such mobile home in any county and within 30 days after movement of such mobile home to a new location, file with the county assessor, Supervisor of Assessments or township assessor, as the case may be, a mobile home registration showing the name and address of the owner and every occupant of the mobile home, the location of the mobile home, the year of manufacture, and the square feet of floor space contained in such mobile home together with the date that the mobile home became inhabited, was initially installed and set up in the county, or was moved to a new location. Such registration shall also include the license number of such mobile home and of the towing vehicle, if there be any, and the State issuing such licenses. In the case of a mobile home not located in a mobile home park, the registration shall be signed by the owner or occupant of the mobile home and the title or certificate of origin shall be signed and recorded in the county where the home is located or surrendered to the county and held until such time the home is removed from the county. Titles or certificates of origin held by a mortgage company on the home shall be signed and recorded in the county where located or surrendered to the county once the mortgage is released. Failure to record or surrender the title or certificate of origin shall not prevent the home from being assessed and taxed as real property. It is the duty of each township assessor, if any, and each Supervisor of Assessments or county assessor if there is no township assessor, or the county assessor in those counties in which a county assessor is elected pursuant to Section 3-45 of the Property Tax Code, to require timely filing of a properly completed registration for each mobile home located in his or her township or county, as the case may be. Any person furnishing misinformation for purposes of registration or failing to file a required registration is guilty of a Class A misdemeanor. This Section applies only when the tax permitted by Section 3 has been imposed on mobile homes located inside mobile home parks.

(Source: P.A. 96-1477, eff. 1-1-11.)

Section 25. The Manufactured Home Installation Act is amended by changing Section 10 as follows:

(35 ILCS 517/10)

Sec. 10. Installation requirements; classification as real property.

(a) Except as provided in subsection (b), a mobile home or manufactured home installed on private property that is not in a mobile home park on or after the effective date of this Act must be installed in accordance with the manufacturer's instructions and classified, assessed, and taxed as real property.

(b) Mobile homes and manufactured homes that (i) are located outside of mobile home parks and (ii) are taxed under the Mobile Home Local Services Tax Act on the effective date of this Act must continue to be taxed under the Mobile Home Local Services Tax Act and shall not be classified, assessed, and taxed as real property until the home is sold or transferred or until the home is relocated to a different parcel of land outside of a mobile home park. If a mobile home described in this subsection (b) is sold, transferred, or relocated to a different parcel of land outside of a mobile home park, then the home shall be classified, assessed, and taxed as real property. Mobile homes and manufactured homes that are classified, assessed, and taxed as real property on the effective date of this Act shall continue to be classified, assessed, and taxed as real property. The owner of a mobile home or manufactured home that is located outside of a mobile home park may file a request with the county assessor Department of Revenue that the home be classified, assessed, and taxed as real property.

(c) Mobile homes and manufactured homes that are located in mobile home parks must be taxed according to the Mobile Home Local Services Tax Act.

(Source: P.A. 96-1477, eff. 1-1-11.)

Section 30. The Abandoned Mobile Home Act is amended by changing Section 10 as follows:

(210 ILCS 117/10)

Sec. 10. Definitions.

"Manufactured home" means a factory-assembled, completely integrated structure designed for permanent habitation, with a permanent chassis, and so constructed as to permit its transport, on wheels temporarily or permanently attached to its frame, and is a movable or portable unit that is (i) 8 body feet or more in width, (ii) 40 body feet or more in length, and (iii) 320 or more square feet, constructed to be towed on its own chassis (comprised of frame and wheels) from the place of its construction to the location, or subsequent locations, at which it is installed and set up according to the manufacturer's instructions and connected to utilities for year-round occupancy for use as a permanent habitation, and designed and situated so as to permit its occupancy as a dwelling place for one or more persons. The term shall include units containing parts that may be folded, collapsed, or telescoped when being towed and that may be expected to provide additional cubic capacity, and that are designed to be joined into one integral unit capable of being separated again into the components for repeated towing. The term excludes campers and recreational vehicles.

"Abandoned mobile home" means a mobile home inside a mobile home park that has no owner currently residing in the mobile home or authorized tenant of the owner currently residing in the mobile home to the best knowledge of the municipality; has had its electricity, natural gas, sewer, and water payments declared delinquent by the utility companies that are providing such services; and for which the Mobile Home Privilege Tax, imposed under the Mobile Home Local Services Tax Act, is delinquent for at least 3 months. A mobile home abandoned outside of a mobile home park must be treated like other real property for condemnation purposes.

"Municipality" means any city, village, incorporated town, or its duly authorized agent. If an abandoned mobile home is located in an unincorporated area, the county where the mobile home is located shall have all powers granted to a municipality under this Act.

(Source: P.A. 96-1477, eff. 1-1-11.)

Section 99. Effective date. This Act takes effect upon becoming law.