GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 1120

Short Title:  Manufactured Home Property Tax.	(Public)

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Sponsors: Representatives Shaw, Blue, Cansler, Capps, Church, Neely, G. Robinson, and Shubert.

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Referred to:  Finance.

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May 14, 1996

A BILL TO BE ENTITLED
AN ACT TO PROVIDE A PROCEDURE FOR LIENHOLDERS ON MANUFACTURED HOMES TO REGISTER FOR NOTIFICATION OF DELINQUENT PROPERTY TAXES ON THE HOMES AND, ONCE REGISTERED, TO BE ABLE TO REPOSSESS A HOME BY PAYING NO MORE THAN TWO YEARS' PROPERTY TAXES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-316.4 reads as rewritten:
"§ 105-316.4. Special rules for lienholders repossessing mobile homes.
(a)	Requirements for Obtaining Permit. – A person who intends to take possession of a mobile home as the holder of a lien on the home shall notify the tax collector of the location to which the home is to be taken.  The tax collector shall then give the lienholder a statement of taxes due only on the mobile home.  If the lienholder has not filed a timely continuing request for notice of delinquent taxes as set out in subsection (b) of this section, the lienholder must pay all unpaid taxes on the mobile home before obtaining a permit and repossessing the home.  If the lienholder has filed a timely continuing request for notice of delinquent taxes as set out in subsection (b) of this section, the lienholder may obtain a permit by paying the applicable amount provided in subsection (c) by the deadline provided in subsection (d).  The tax collector shall issue a permit to a lienholder who complies with the requirements of this section.
(b)	Continuing Request for Notice of Delinquent Taxes. – A lienholder may, at any time at least three months before repossessing a mobile home, file with the tax collector a continuing request to be notified of taxes on the mobile home that become delinquent.  The request must be in writing and must include all of the following information:
(1)	The name and mailing address of the lienholder.
(2)	The name and mailing address of the owner of the mobile home.
(3)	The address where the mobile home is located.
(4)	The serial number, year, make, model, and dimensions of the mobile home.
After a lienholder has filed a request, the tax collector may notify the lienholder of taxes on the mobile home that are or become delinquent.  In addition, when the lienholder requests a permit, the tax collector shall give the lienholder a statement of taxes due on the mobile home as provided in subsection (a).
(c)	Amount of Taxes Payable by Lienholder. – To obtain a permit, a lienholder who has filed a timely request under subsection (b) of this section must pay the current year's property taxes on the mobile home.  In addition, if there were any delinquent taxes on the mobile home at the time the request was filed or if the tax collector has notified the lienholder of any delinquent taxes on the mobile home within six months after they became delinquent, the lienholder must pay the delinquent taxes for the year preceding the current tax year.
(d)	When Taxes Payable. – A resident lienholder who has filed a timely request under subsection (b) of this section must pay the taxes due under subsection (c) within seven days after the permit is issued.  A nonresident lienholder who has filed a timely request under subsection (b) of this section must pay the taxes due under subsection (c) before the permit is issued.  A lienholder who has not filed a timely request under subsection (b) of this section must pay all taxes due on the mobile home as provided in subsection (a) before the permit is issued.
(e)	Effect of Payment of Taxes. – After a lienholder has paid the amount of taxes required by this section, the mobile home is no longer subject to levy or attachment of any lien for any other taxes then owed by the owner of the mobile home, whether or not previously determined.
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Sec. 2.  G.S. 105-355 reads as rewritten:
"§ 105-355.  Creation of tax lien; date as of which lien attaches.
(a)	Lien on Real Property. – Regardless of the time at which liability for a tax for a given fiscal year may arise or the exact amount thereof be determined, the lien for taxes levied on a parcel of real property shall attach to the parcel taxed on the date as of which property is to be listed under G.S. 105-285, and the lien for taxes levied on personal property shall attach to all real property of the taxpayer in the taxing unit on the same date.  All penalties, interest, and costs allowed by law shall be added to the amount of the lien and shall be regarded as attaching at the same time as the lien for the principal amount of the taxes. For purposes of this subsection:
(1)	Taxes levied on real property listed in the name of a life tenant under G.S. 105-302(c)(8) shall be a lien on the fee as well as the life estate.
	(2) 	Taxes levied on improvements on or separate rights in real property owned by one other than the owner of the land, whether or not listed separately from the land under G.S. 105-302(c)(11), shall be a lien on both the improvements or rights and on the land.
(b)	Lien on Personal Property. – Taxes levied on real and personal property (including penalties, interest, and costs allowed by law) shall be a lien on personal property from and after levy or attachment and garnishment of the personal property levied upon or attached. 
(c)	Mobile Homes. – The lien of taxes on a mobile home on which a security interest exists of record shall be enforceable against the holder of the security interest only for taxes that the holder of the security interest would be required to pay in order to repossess the mobile home under G.S. 105-316.4.  If the holder of a security interest of record on a mobile home has paid all taxes required under G.S. 105-316.4 in order to repossess the mobile home, the mobile home is no longer subject to levy or attachment of any lien for any other taxes owed at the time of payment by the owner of the mobile home."
Sec. 3.  G.S.  105-366(b)(6) reads as rewritten:
"(6)	Personal property of the taxpayer that has been repossessed  by one having a security interest therein so long as the property remains in the hands of the person who has repossessed it or the person to whom it has been transferred  other than by bona fide sale for value. However, a levy on a mobile home in the hands of a repossessor, or a person to whom the repossessor transferred it other than by bona fide sale for value, may be made only for taxes that the repossessor was required to pay in order to repossess the mobile home under G.S. 105-316.4."
Sec. 4.  This act becomes effective July 1, 1996.