Manufactured Homes

All new manufactured homes purchased on or after July 1, 1980, and those on permanent foundations, are subject to assessment on the local roll. As with real property, the assessed value of manufactured homes cannot be increased by more than 2% annually, unless there is a change in ownership or new construction.

Manufactured homes purchased before July 1, 1980, are not subject to assessment on the local roll if they remain licensed by the Department of Housing and Community Development. Owners may voluntarily convert from vehicle license fees to local property taxes, but once converted to the local assessment roll they may not switch back to the vehicle license fees.

Due to enacted legislation, the purchase of a mobile home park by the current residents may not constitute a change in ownership for property assessment purposes, and will not result in a reappraisal. Roll values will not be increased, except for the normal 2% maximum inflationary factor. However, if your property assessment was lowered under a Decline in Value (R&T Sec. 51) appraisal or Calamity Review, the restoration of your value may exceed 2% annually.

Frequently Asked Questions

Are manufactured homes the same as mobilehomes?

Although they may generally have the same meaning, for California property taxation purposes, the term mobilehome is now obsolete and was changed to manufactured home in Revenue and Taxation Code section 5801 in January 1992. However, the term mobilehome park remains a correct term for a community of manufactured homes.

How are manufactured homes taxed in California?

Manufactured homes in California are generally subject to two taxes:

  • Sales tax or use tax at the time of sale or resale, and
  • Either the annual local property tax or the annual vehicle license fee, which is also called an in-lieu fee.

If your manufactured home was originally purchased new on or after July 1, 1980, it was automatically subject to local property taxes. If purchased new prior to that date, you or the prior owner could voluntarily convert the annual vehicle license fee to local taxation.

The general property tax rate throughout California is limited to 1 percent of a property's assessed value. However, depending upon where your manufactured home is located, there may be other taxes or fees necessary to pay off any voter-approved general obligation bonds or other indebtedness which could result in a slightly higher overall property tax rate. You should contact your county auditor-controller's office to determine if any of these other taxes may apply to your manufactured home.

The following table can be used to determine the taxability of manufactured homes and accessories.

Manufactured Homes Non-Taxable
In-Lieu License Fees
Paid to Housing & Community Development
Local Property Tax Paid to the County Tax Collector's Office
First sold prior to 1977

Manufactured homes

Accessories installed on a lot with a manufactured home first sold prior to January 1, 1977 are rebuttably presumed to be included in the in-lieu license fees for the manufactured home

Accessories which can be proven to have been added after the manufactured home sold, and thus are not part of the in-lieu license fees

Accessories which are permanently affixed to the land

First sold between January 1, 1977 and June 30, 1980

Manufactured homes

All accessories

First sold on July 1, 1980 and following


All manufactured homes and accessories

Exceptions to Non-Taxable Category

  • All manufactured homes voluntarily converted to local property tax.
  • All manufactured home on a permanent foundation approved under Health and Safety Code Section 18551.
  • All manufactured homes subject to in-lieu fees that were delinquent for 120 days or more between July 1, 1980 and October 1, 1984, and which were not reinstated by December 31, 1986.

My manufactured home is currently licensed by the California Department of Housing and Community Development. Are there any advantages to converting to local property taxation?

There may be advantages, but each case should be evaluated individually. One possible advantage is that property taxes are payable in two annual installments. You may also be entitled to the $7,000 Homeowners' Property Tax Exemption or other exemptions administered by the county assessor. It should be noted, however, that if you receive the Homeowners' Exemption, you cannot apply for the Renters' Credit on your California State Income Tax return. Additionally, manufactured homes subject to local property taxation are exempt from any sales or use tax upon resale. Therefore, you may enhance the marketability of your manufactured home by voluntarily converting it to local property taxation prior to selling it. Once you convert to local property taxation, you or any subsequent owners cannot revert back to vehicle license fees.

How can I change the taxation of my manufactured home from license fees to the local property tax system?

You can request a voluntary conversion to local property taxes by contacting the California Department of Housing and Community Development (HCD) and the county assessor. Once manufactured homes have been changed to local property taxation, it is not possible to reinstate the vehicle in-lieu license fees.

If I purchase a manufactured home or if there is new construction on the home, will I have to pay supplemental taxes?

Manufactured homes that are subject to local property taxation are subject to supplemental taxes. Manufactured homes that are subject to vehicle license fees are not subject to supplemental taxes.