Virginia Senate Bill SB922

Virginia 2023 Regular Session

• Introduced: 1/6/23
• Refer: 1/6/23

Caption

Income tax, state; manufactured home park sale.

Impact

The implementation of SB922 is expected to create a significant impact on state tax revenues by allowing exemptions on the taxable income derived from the sale of manufactured home parks. This could encourage sales of such parks to resident-owned entities or nonprofits, helping to preserve these communities and preventing their conversion into different uses that could displace residents. As a result, the bill may help in addressing affordable housing issues by keeping manufactured home parks operational under their original context.

Summary

SB922 introduces tax regulations concerning the sale or exchange of manufactured home parks in Virginia. Under this bill, certain gains derived from the sale of a manufactured home park will be exempt from state income tax provided that the sale meets specific conditions. These conditions include that the buyer must be owned by at least 25% of the current residents of the manufactured home park, or it must be sold to a nonprofit organization that intends to maintain the property as a manufactured home park for at least 30 years. This provision aims to promote resident ownership and stability within such parks, supporting community engagement and a sense of ownership among the residents.

Contention

While proponents of SB922 argue that the bill encourages community ownership and provides long-term stability to manufactured home residents, there are concerns regarding the implications of these tax exemptions on the state's income tax revenue. Critics may argue that such tax breaks could lead to a loss of potential state revenue, which could affect funding for public services. Additionally, there may be discussions around the effectiveness of these measures in genuinely maintaining affordable housing options as property ownership transitions within these parks.