Loss of Property Tax Collection on Mobile Homes 

Comments Requested

Assembly Bill 587 (Chau) – Pending
Senate Housing and Transportation Committee – June 30

Your comments are requested on mobile home property tax legislation that would create a new, streamlined registration system through the Department of Motor Vehicle (DMV) but at a steep price tag for counties. Please email comments, feedback or questions to Dorothy Holzem at dholzem@counties.org

Mobile home property tax collection and transfer of ownership is a complex and tangled process complicated by the unique title transfer process. Under current law, a mobile home owner cannot transfer the title without clearing the title of unpaid back taxes, which may have been incurred by previous owners. This process is administered by the California Department of Housing and Community Development (HCD) for mobile homes purchased after 1980. AB 587 would move mobile home title registration from HCD to the DMV. To encourage mobile home owners to come forward and receive the proper paperwork, current mobile home owners would receive “amnesty” for unpaid property taxes on their mobile homes. The author contends this is necessary to bring all current owners into the system and true-up collections moving forward.

Unfortunately, AB 587 could result in counties losing tens of millions of dollars in property taxes. CSAC believes some amnesty is appropriate for unpaid property taxes incurred by previous mobile home owners. The challenge and staff resources to collect unpaid back taxes could exceed the potential revenues collected in some instances. However, providing the amnesty to all past and current owners may go too far. CSAC also recognizes the need to clean up the current title transfer process, but the methodology proposed in AB 587 may place counties at a significant disadvantage.

Local Control Tossed Out by Governing Board Proposal

Senate Constitutional Amendment 8 (Mendoza) – Oppose Unless Amended, 
Senate Governance and Finance Committee, July 1

The number of supervisors guiding a county is a local matter, but SCA 8 would have the entire state of California vote on how many supervisors charter counties with more than 2 million people should have. CSAC is opposing this measure on the grounds that it undermines local control, is redundant to existing local authority, and could weaken overall representation for a given county by limiting the total expenditures on any newly added supervisorial offices. CSAC and the Urban County Caucus have requested amendments to remove the expenditure restriction, only have the impacted county vote on proposed changes, and expand this authority to all counties, not just charter counties.

Based on current charter county designation and population projections, SCA 8 would apply to Los Angeles, Orange, San Bernardino, and San Diego County. While the impact is limited, this measure would set negative precedent for local control, create significant new costs, and could be up for constitutional challenges.

Elections Reform Package Heads to First Hearing

Senate Bill 450 (Allen) – Pending
Assembly Elections and Redistricting Committee, July 1 (anticipated)

SB 450 seeks to overhaul existing elections practices to increase voting opportunities based on the “Colorado model”, which may result in significant savings for counties once implemented. The bill would provide all voters with vote-by-mail ballots and change from polling stations that are open on just one day to “vote centers” and drop-off locations open for approximately two weeks leading up to the actual election day. CSAC is working closely with the California Association of Clerks and Elections Officials in vetting and reviewing the proposed changes to existing procedure, equipment and the administration of elections.

City Disincorporation Guidance Bill Moves Forward

CSAC supported AB 851 (Mayes) offers important and necessary updates to state statute guiding city disincorporation. Importantly, it ensures the Local Agency Formation Commissions (LAFCos) remain central to the process while maintaining transparency and existing voter approval requirements. CSAC is joined in support of this measure, sponsored by CALAFCO, with the League of California Cities, Urban County Caucus, California Special Districts Association, and San Bernardino County.

For the latest on all Revenue and Taxation legislation, please click here.