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Scope Of Manufactured Home Sales Tax Exemption

Concerning clarification of the scope of an existing sales tax exemption for manufactured homes.
2019 Regular Session
Fiscal Policy & Taxes
Bill Summary

Statutory Revision Committee. A state sales and use tax exemption statute (exemption statute) exempts from state sales tax, and through operation of another statute also exempts from local sales taxes, 48% of the purchase price for the initial sale of "factory-built housing" and 100% of the purchase price for any subsequent sale of a "manufactured home" (sales tax exemption). The exemption statute references another statute defining "factory-built housing". In Senate Bill 03-182, however, the general assembly replaced the existing definition of "factory-built housing" with a new definition of "factory-built residential structure", and the statute referenced in the exemption statute actually defines the latter term. The definition of "factory-built residential structure" includes only "structures designed to be installed on a permanent foundation" and therefore arguably limits the sales tax exemption, which had previously clearly applied to structures designed for occupancy in either temporary or permanent locations, to only those structures designed to be installed on permanent foundations.

The bill clarifies the scope of the sales tax exemption by allowing it for "manufactured homes", a term that a specifically referenced statute defines broadly to include homes designed to be installed on either temporary or permanent foundations.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)


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Bill Text