Michigan House Bill HB5163

Michigan 2023-2024 Regular Session

• Introduced: 10/17/23
• Refer: 10/17/23

Caption

Property tax: other; scope of mobile homes subject to general ad valorem property taxes; modify. Amends sec. 2a of 1893 PA 206 (MCL 211.2a). TIE BAR WITH: HB 5162'23

Impact

The implications of HB 5163 are significant for mobile home owners and local governments alike. By classifying certain mobile homes as real property, the bill could potentially increase the tax liabilities of mobile home owners, affecting their overall financial planning. Local authorities may also experience fluctuations in property tax revenues as they adjust to the new classifications and assess existing mobile home properties in line with this legislation. Furthermore, the bill's enactment may prompt a reevaluation of local tax policies surrounding mobile and recreational homes.

Summary

House Bill 5163 seeks to amend the 1893 Property Tax Act by clarifying the classification and tax assessment of mobile homes. Specifically, the bill stipulates that mobile homes which are not governed by a specific section of earlier legislation will be regarded as real property when located on assessable land. This means that mobile homes, regardless of whether they are permanently affixed to the ground or not, will be subject to the same property tax rules applicable to real estate in Michigan. This change aims to standardize the assessment process for mobile homes within the state's property tax framework.

Contention

While proponents of the bill argue that this change is necessary for fiscal consistency and fairness in property tax assessments, there are concerns that it could impose an undue financial burden on mobile home owners. Critics might express apprehension regarding the increased property taxes and how they could impact low-income households who often reside in mobile homes. Additionally, the bill ties itself to another bill, House Bill 5162, signaling that the amendments to the Property Tax Act could be part of a broader legislative strategy, which may also serve as a point of contention among lawmakers.