Under the newly enacted reforms, tax assessor-collectors can go to a central database for all tax information on a home to determine if all taxes have been paid before an ownership change occurs. The database will be maintained by the Texas Department of Housing and Community Affairs.
There are about 760,000 manufactured home owners in Texas. About 110,000 of those homes have been declared to be real property and are taxed as an improvement to the land on which the home is located.
"Previously, this information was available only on a county-by-county basis," said Kevin Ketchum, executive director of the Texas Manufactured Housing Association. "There is now one place to go to determine if any tax liens exist."
Consumers gained additional protection with a requirement that tax collection on resale of manufactured homes rest with the persons actually owing the tax. In the recent past, taxing authorities sought payment from unsuspecting buyers instead of those who created the tax debt.
"We support the collection of all property taxes," Ketchum said. "We just believe that they should be paid by the people who owe them."
The Legislature also added requirements that all new salespersons receive ethics and regulations training as part of securing an initial license and standardized the consumer protection disclosure form.
