Senate File 2199 - Reprinted SENATE FILE 2199 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 3133) (As Amended and Passed by the Senate February 15, 2010 ) A BILL FOR An Act relating to the collection of the use tax on 1 manufactured housing, the licensing of manufactured home 2 retailers, amending statutory references to certain types of 3 home dealers, establishing titling procedures for certain 4 manufactured and mobile homes, making penalties applicable, 5 and including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 SF 2199 (4) 83 md/sc/jh

S.F. 2199 Section 1. Section 103A.55, subsection 1, Code 2009, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . g. Failing to comply with the requirements 3 of section 423.26A relating to the collection of use tax. 4 Sec. 2. Section 312.1, subsection 1, paragraph d, Code 2009, 5 is amended to read as follows: 6 d. Revenue derived from the use tax collected under 7 section sections 423.26 and 423.26A , to the extent provided 8 under section 321.145, subsection 2. 9 Sec. 3. Section 321.20, subsection 1, paragraph e, Code 10 2009, is amended to read as follows: 11 e. The amount of the fee for new registration to be paid 12 under section 321.105A , or the amount of tax to be paid under 13 section 423.26, subsection 1 , or the amount of tax to be paid 14 under section 423.26A . 15 Sec. 4. Section 331.557, subsection 3, Code 2009, is amended 16 to read as follows: 17 3. Collect and forward the use tax on vehicles subject 18 only to a certificate of title and on manufactured housing as 19 provided in section 423.14 , and section 423.26, subsection 1 , 20 and section 423.26A . 21 Sec. 5. Section 423.14, subsection 2, paragraph a, Code 22 2009, is amended to read as follows: 23 a. The tax upon the use of all vehicles subject only to the 24 issuance of a certificate of title or the tax upon the use of 25 manufactured housing shall be collected by the county treasurer 26 or the state department of transportation pursuant to section 27 423.26, subsection 1. The county treasurer shall retain one 28 dollar from each tax payment collected, to be credited to the 29 county general fund. 30 Sec. 6. Section 423.16, subsection 1, Code 2009, is amended 31 to read as follows: 32 1. The retail sale or transfer of watercraft, modular 33 homes, manufactured housing, or mobile homes, and the retail 34 sale, excluding lease or rental, of motor vehicles, trailers, 35 -1- SF 2199 (4) 83 md/sc/jh 1/ 9

S.F. 2199 semitrailers, or aircraft that do not qualify as transportation 1 equipment, as defined in section 423.15, subsection 3. 2 Sec. 7. Section 423.26, subsection 1, paragraph a, Code 3 2009, is amended to read as follows: 4 a. The use tax imposed upon the use of vehicles subject 5 only to the issuance of a certificate of title or imposed upon 6 the use of manufactured housing shall be paid by the owner 7 of the vehicle or of the manufactured housing to the county 8 treasurer or the state department of transportation from whom 9 the certificate of title is obtained. A certificate of title 10 shall not be issued until the tax has been paid. The county 11 treasurer or the state department of transportation shall 12 require every applicant for a certificate of title to supply 13 information as the county treasurer or the director deems 14 necessary as to the time of purchase, the purchase price, 15 installed purchase price, and other information relative to the 16 purchase of the vehicle or manufactured housing . On or before 17 the tenth day of each month, the county treasurer or the state 18 department of transportation shall remit to the department the 19 amount of the taxes collected during the preceding month. 20 Sec. 8. NEW SECTION . 423.26A Manufactured housing —— 21 collection of use tax —— certificate of title. 22 1. Except as provided in subsection 3, the use tax imposed 23 upon the use of manufactured housing shall be paid by the owner 24 of the manufactured housing to the manufactured home retailer 25 licensed under chapter 103A. The owner of the manufactured 26 housing shall also provide to the manufactured home retailer 27 all information necessary to complete and submit an application 28 for a certificate of title. 29 2. Use tax collected by the manufactured home retailer shall 30 be forwarded to the county treasurer or the state department of 31 transportation. The county treasurer shall retain one dollar 32 from each tax payment collected by a manufactured home retailer 33 and paid to the county treasurer, to be credited to the county 34 general fund. The manufactured home retailer shall submit an 35 -2- SF 2199 (4) 83 md/sc/jh 2/ 9

S.F. 2199 application for certificate of title on behalf of the owner of 1 the manufactured housing. 2 3. The use tax imposed upon the use of manufactured housing 3 brought into the state of Iowa which has not previously been 4 subject to the tax imposed under this subchapter and for which 5 that tax has not been paid, shall be paid by the owner of the 6 manufactured housing to the county treasurer or the state 7 department of transportation from whom the certificate of title 8 is obtained. The owner of the manufactured housing shall 9 submit an application for a certificate of title. Section 10 423.22 shall apply in the case where the owner has paid tax in 11 another state. 12 4. The county treasurer or the state department of 13 transportation shall require every application for a 14 certificate of title to include information as the county 15 treasurer or the director deems necessary as to the time of 16 purchase, the purchase price, installed purchase price, and 17 other information relative to the purchase of the manufactured 18 housing. 19 5. A certificate of title shall not be issued until the tax 20 has been paid. A certificate of title shall be delivered to 21 the owner of the manufactured housing by the county treasurer 22 or state department of transportation who received the use tax. 23 6. On or before the tenth day of each month, the county 24 treasurer or the state department of transportation shall remit 25 to the department the amount of the taxes collected during the 26 preceding month. 27 7. A person who willfully makes a false statement in regard 28 to taxation under this section is guilty of a fraudulent 29 practice. A person who willfully makes a false statement in 30 regard to taxation under this section with the intent to evade 31 the payment of tax shall be assessed a penalty of seventy-five 32 percent of the amount of tax unpaid and required to be paid. 33 Sec. 9. Section 423.36, subsection 8, paragraph b, 34 subparagraph (2), Code 2009, is amended to read as follows: 35 -3- SF 2199 (4) 83 md/sc/jh 3/ 9

S.F. 2199 (2) Taxes imposed under section 423.26 , section 1 423.26A, and chapter 423C. 2 Sec. 10. Section 423.43, subsection 2, Code 2009, is amended 3 to read as follows: 4 2. All revenue derived from the use tax imposed pursuant 5 to section sections 423.26 and 423.26A shall be credited to 6 the statutory allocations fund created under section 321.145, 7 subsection 2. 8 Sec. 11. Section 435.23, Code Supplement 2009, is amended 9 to read as follows: 10 435.23 Exemptions —— prorating tax. 11 The manufacturer’s and dealer’s retailer’s inventory of 12 mobile homes, manufactured homes, or modular homes not in use 13 as a place of human habitation shall be exempt from the annual 14 tax. All travel trailers shall be exempt from this tax. The 15 homes and travel trailers in the inventory of manufacturers and 16 dealers retailers shall be exempt from personal property tax. 17 The homes coming into Iowa from out of state and located in a 18 manufactured home community or mobile home park shall be liable 19 for the tax computed pro rata to the nearest whole month, for 20 the time the home is actually situated in Iowa. 21 Sec. 12. Section 435.24, subsections 1 and 5, Code 22 Supplement 2009, are amended to read as follows: 23 1. The annual tax is due and payable to the county treasurer 24 on or after July 1 in each fiscal year and is collectible in 25 the same manner and at the same time as ordinary taxes as 26 provided in sections 445.36, 445.37, and 445.39. Interest 27 at the rate prescribed by law shall accrue on unpaid taxes. 28 Both installments of taxes may be paid at one time. The 29 September installment represents a tax period beginning July 30 1 and ending December 31. The March installment represents 31 a tax period beginning January 1 and ending June 30. A 32 mobile home, manufactured home, or modular home coming 33 into this state from outside the state, put in use from a 34 dealer’s retailer’s inventory, or put in use at any time 35 -4- SF 2199 (4) 83 md/sc/jh 4/ 9

S.F. 2199 after July 1 or January 1, and located in a manufactured 1 home community or mobile home park, is subject to the taxes 2 prorated for the remaining unexpired months of the tax period, 3 but the purchaser is not required to pay the tax at the time 4 of purchase. Interest attaches the following April 1 for 5 taxes prorated on or after October 1. Interest attaches the 6 following October 1 for taxes prorated on or after April 1. 7 If the taxes are not paid, the county treasurer shall send a 8 statement of delinquent taxes as part of the notice of tax 9 sale as provided in section 446.9. The owner of a home who 10 sells the home between July 1 and December 31 and obtains a 11 tax clearance statement is responsible only for the September 12 tax payment and is not required to pay taxes for subsequent 13 tax periods. If the owner of a home located in a manufactured 14 home community or mobile home park sells the home, obtains a 15 tax clearance statement, and obtains a replacement home to be 16 located in a manufactured home community or mobile home park, 17 the owner shall not pay taxes under this chapter for the newly 18 acquired home for the same tax period that the owner has paid 19 taxes on the home sold. Interest for delinquent taxes shall 20 be calculated to the nearest whole dollar. In calculating 21 interest each fraction of a month shall be counted as an entire 22 month. 23 5. Before a home may be moved from its present site by any 24 person, a tax clearance statement in the name of the owner 25 must be obtained from the county treasurer of the county where 26 the present site is located certifying that taxes are not 27 owing under this section for previous years and that the taxes 28 have been paid for the current tax period. When a person 29 moves a home from real property to a dealer’s retailer’s stock 30 or to a manufactured home community or mobile home park, as 31 defined in section 435.1, a tax clearance statement shall be 32 applied for, and issued, from the county treasurer of the 33 county where the present site is located. When the home is 34 moved to another county in this state, the county treasurer 35 -5- SF 2199 (4) 83 md/sc/jh 5/ 9

S.F. 2199 shall forward a copy of the tax clearance statement to the 1 county treasurer of the county in which the home is being 2 relocated. However, a tax clearance statement is not required 3 for a home in a manufacturer’s or dealer’s retailer’s stock 4 which has not been used as a place for human habitation. A tax 5 clearance form is not required to move an abandoned home. A 6 tax clearance form is not required in eviction cases provided 7 the manufactured home community or mobile home park owner 8 or manager advises the county treasurer that the tenant is 9 being evicted. If a dealer retailer acquires a home from a 10 person other than a manufacturer, the person shall provide a 11 tax clearance statement in the name of the owner of record to 12 the dealer retailer . The tax clearance statement shall be 13 provided by the county treasurer in a method prescribed by the 14 department of transportation. 15 Sec. 13. NEW SECTION . 435.26B Affidavit in lieu of 16 surrender of certificate of title —— manufactured and mobile 17 homes. 18 1. If there is no record that a certificate of title has 19 been issued or surrendered for a manufactured home or mobile 20 home that is located outside a manufactured home community or 21 mobile home park, that has been converted to real estate by 22 being placed on a permanent foundation, and that is entered 23 on the tax rolls, the owner may effectuate a surrender of the 24 certificate of title by recording with the county recorder an 25 affidavit that includes all of the following: 26 a. The full legal name, Iowa driver’s license number or Iowa 27 nonoperator’s identification card number, bona fide residence, 28 and mailing address of the owner, and any other identification 29 information required by the state department of transportation. 30 If the owner is a firm, association, or corporation, the 31 affidavit shall contain the bona fide business address and 32 federal employer identification number of the owner. 33 b. A description of the manufactured or mobile home 34 including, insofar as the specified data may exist with respect 35 -6- SF 2199 (4) 83 md/sc/jh 6/ 9

S.F. 2199 to a manufactured or mobile home, the manufacturer, model, year 1 of manufacture, and identification number or other assigned 2 number. 3 c. A statement of the affiant’s title or ownership interest 4 and a statement of all liens, encumbrances, or security 5 interest upon the manufactured or mobile home, including the 6 names and mailing addresses of all persons having any such 7 liens, encumbrances, or security interests. 8 d. A statement of any facts or information known to 9 the affiant that could affect the validity of title or the 10 existence or validity of any lien, encumbrance, or security 11 interest on the manufactured or mobile home. 12 e. The name and address of the person from whom the 13 owner purchased or acquired the manufactured or mobile home, 14 including information related to the location and date of 15 purchase or acquisition. 16 f. The affidavit shall also include an attached written 17 opinion of an attorney licensed in this state that certifies 18 marketable record title to the manufactured or mobile home. 19 g. A statement that the manufactured or mobile home is 20 located outside a manufactured home community or mobile 21 home park, has been converted to real estate by being placed 22 on a permanent foundation, and has been entered on the tax 23 rolls. This statement shall be endorsed by the city or county 24 assessor, as applicable, and include the legal description of 25 the real property upon which the manufactured or mobile home 26 is situated. 27 h. A statement that the owner has made a diligent search 28 and inquiry but has been unable to locate and produce a 29 manufacturer’s certificate of origin or a certificate of title 30 for the manufactured or mobile home and that the owner has 31 no knowledge that a certificate of title has previously been 32 issued or surrendered for the manufactured or mobile home. 33 i. (1) An endorsement by the state department of 34 transportation that the department has searched its records and 35 -7- SF 2199 (4) 83 md/sc/jh 7/ 9

S.F. 2199 has no record of a certificate of title or a surrender of a 1 certificate of title for the manufactured or mobile home and 2 that the department has no record of any ownership interest 3 contrary to the ownership interest asserted by the affiant. 4 The endorsement shall also specify that the state department of 5 transportation is unable to identify any lien, encumbrance, or 6 security interest contrary to those specified by the affiant. 7 (2) The state department of transportation shall not 8 conduct any search of records or provide any endorsement until 9 the affidavit has been completed, executed, and endorsed 10 pursuant to paragraphs “a” through “h” and the affiant has paid 11 a fee not to exceed two hundred dollars. The state department 12 of transportation shall set the amount of the fee by rule. 13 (3) Following endorsement of the affidavit, the state 14 department of transportation shall return the affidavit to the 15 owner for recording. 16 (4) If the state department of transportation has endorsed 17 an affidavit, the department shall not issue a certificate 18 of title for the manufactured or mobile home unless the 19 manufactured or mobile home is reconverted under section 20 435.27. 21 2. Recording the affidavit with all necessary endorsements 22 and attachments shall establish the surrender of the 23 certificate of title. 24 3. After the surrender of the certificate of title under 25 this section, a conveyance of an interest in the manufactured 26 or mobile home shall not require a transfer of title if the 27 manufactured or mobile home remains located on the same real 28 property that is identified in the affidavit under subsection 29 2. 30 4. A foreclosure action on a manufactured or mobile home 31 for which the certificate of title was surrendered under this 32 section shall be conducted as a real estate foreclosure. 33 5. A tax lien and its priority shall not be modified as a 34 result of a surrender of title under this section. 35 -8- SF 2199 (4) 83 md/sc/jh 8/ 9

S.F. 2199 6. The state department of transportation shall adopt rules 1 under chapter 17A to implement this section. The rules adopted 2 by the state department of transportation shall include a 3 standardized form for an affidavit required under this section. 4 Sec. 14. Section 435.28, Code 2009, is amended to read as 5 follows: 6 435.28 County treasurer to notify assessor. 7 Upon issuance of a certificate of title to a mobile home or 8 manufactured home which is not located in a manufactured home 9 community or mobile home park or dealer’s retailer’s inventory, 10 the county treasurer shall notify the assessor of the existence 11 of the home for tax assessment purposes. 12 Sec. 15. EFFECTIVE UPON ENACTMENT. This Act, being deemed 13 of immediate importance, takes effect upon enactment. 14 -9- SF 2199 (4) 83 md/sc/jh 9/ 9