If enacted, HB2720 would significantly alter the tax implications for individuals purchasing manufactured homes. The reduction in taxable amounts is designed to provide financial relief to new homeowners and promote the use and stability of manufactured housing, potentially aiding in housing shortages. The requirement for these homes to be affixed to a permanent foundation also aligns them more closely with traditional real estate transactions, lending them greater legitimacy in the eyes of buyers and financial institutions.
Summary
House Bill 2720 seeks to amend the Use Tax Act and the Retailers' Occupation Tax Act concerning the taxation of manufactured homes. The bill proposes that for the first sale of a manufactured home intended for use as a dwelling, the applicable tax would only be 50% of the sale price or the gross receipts if the home is affixed to a permanent foundation. This bill aims to incentivize the purchase of manufactured homes, making them more accessible as permanent residential properties in Illinois.
Contention
While HB2720 presents benefits for potential homeowners, it may face scrutiny regarding the fiscal implications for state revenues. Critics may argue that reducing tax income from property sales could hinder funding for public services. Additionally, there could be concerns about the regulatory standards governing the quality and safety of manufactured homes permanently affixed to foundations, which might impact public health and urban planning initiatives.