Manufactured Housing Tax Liens

Transcription

1 Texas Department of Housing and Community Affairs MANUFACTURED HOUSING DIVISION Manufactured Housing Tax Liens

2 TDHCA Main Web Page To access the Manufactured Housing web page select MANUFACTURED HOUSING tab 2

3 Manufactured Housing Division (MHD) Main Web Page To access the web page for taxing entities select the TAX LIEN INFORMATION tab. 3

4 Tax Lien Information Web Page Announcements and general information on top of page. Information about liens and how to preserve tax liens on center of page in red. Forms on bottom of page. 4

5 About Manufactured Housing The Manufactured Housing Division (MHD) is a division within the Texas Department of Housing and Community Affairs, but because of its regulatory nature, operates independently, under its own Executive Director and Governing Board. 5

6 About the Manufactured Housing Division The MHD is also responsible for: Issuing licenses to manufacturers, retailers, brokers, installers and salespersons Issuing Statements of Ownership (aka titles) Recording and releasing tax liens Maintaining a customer service call center Resolving consumer complaints Conducting installation, warranty, complaint and habitability inspections of manufactured homes. 6

7 How To Identify A Manufactured Home Manufactured homes are identified by: Serial Number This is the primary identification number which is stamped on the front cross bar member (I beam) where the hitch is located (front of home) of each section of the home. HUD Label is the secondary identification number and is a red tag that is riveted to the end of the home on each section, opposite the hitch (back of home). It is placed there by the inspection agency for HUD confirming that at the time of construction the home complied with all federal construction standards. If a used home is missing this label a Texas Seal can be purchased to replace the missing HUD Label at the time the home is sold and re titled. 7

8 Serial Number Serial numbers are stamped in the steel cross bar that the hitch is welded to. 8

9 HUD Label Number and Texas Seal If the HUD Label is missing a Texas Seal must be purchased when the ownership is transferred. 9

10 Data Plate Manufacturer s Address Clayton Homes Plant 700 Imperial Drive Waco, TX Plant Number 93 Date of Manufacturer HUD No TEX /TEX Manufacturer s Serial Number and Model Unit Designation CW2000 TEX A&B The Data Plate, which also identifies the HUD Label and serial numbers of the home, is a paper sticker affixed to the inside cabinet door under the sink or in the master bedroom closet or utility room. 10

11 Statutory Authority Pursuant to Tax Code Issue: Manufactured home not identified on the tax roll or with taxing entity 25.03(a) Property shall be described in the appraisal records with sufficient certainty to identify it. The description of a manufactured home shall include the correct identification or serial number of the home or the Department of Housing and Urban Development label number or the state seal number in addition to the information required in Subsection (c) of this Section. A manufactured home shall not be included in the appraisal records unless this identification and descriptive information is included. (b) The comptroller may adopt rules establishing minimum standards for descriptions of property. (c) Each description of a manufactured home shall include the approximate square footage, the approximate age, the general physical condition, and any characteristics which distinguish the particular manufactured home. Issue: Manufactured home is listed under one account as real property but elected as personal property on the Statement of Ownership (title) (e) A manufactured home shall be listed together with the land on which the home is located if: (1) the statement of ownership and location for the home issued under Section , Occupations Code, reflects that the owner has elected to treat the home as real property; and (2) a certified copy of the statement of ownership and location has been filed in the real property records in the county in which the home is located. (f) A manufactured home shall be listed separately from the land on which the home is located if either of the conditions provided by Subsection (e) is not satisfied. 11

12 Statutory Authority Pursuant to Tax Code Issue: Tax liens on manufactured homes 32.01(a) On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property, whether or not the taxes are imposed in the year the lien attaches. The lien exists in favor of each taxing unit having power to tax the property. Issue: Real property liens also attached to the manufactured home (a) If the owner of a manufactured home has elected to treat the home as real property under Section 25.08, the tax lien shall be attached to the land on which the manufactured home is located. (b) If the owner of a manufactured home does not elect to treat the home as real property with the land on which the manufactured home is located, the tax lien on the manufactured home does not attach to the land on which the home is located. 12

13 Statutory Authority Pursuant to Tax Code Issue: Taxpayer chooses to only pay taxes due which have been filed with the Department (a) On payment of the taxes, penalties, and interest for a year for which a valid tax lien has been recorded on the title records of the department, the collector for the taxing unit shall issue a tax certificate showing no taxes due or a tax paid receipt for such year to the person making payment. When the tax certificate showing no taxes due or tax paid receipt is filed with the department or when no suit to collect a personal property tax lien has been filed and the lien has been delinquent for more than four years, the tax lien is extinguished and canceled and shall be removed from the title records of the manufactured home. The collector for a taxing unit may not refuse to issue a tax paid receipt to the person who offers to pay the taxes, penalties, and interest for a particular year or years, even though taxes may also be due for another year or other years. 13

14 Statutory Authority Pursuant to Tax Code Issue: New buyer not responsible for tax liens not filed with the Department (a) Except as provided by Subsection (a 1), a tax lien may not be enforced against personal property transferred to a buyer in ordinary course of business as defined by Section 1.201(9) of the Business & Commerce Code for value who does not have actual notice of the existence of the lien. Issue: Deadline to file taxes for the previous year is June (a 1) With regard to a manufactured home, a tax lien may be recorded at any time not later than six months after the end of the year for which the tax was owed. A tax lien on a manufactured home may be enforced if it has been recorded in accordance with the laws in effect at the time of the recordation of the lien. A properly recorded tax lien may not be enforced against a new manufactured home that is owned by a person who acquired the manufactured home from a retailer as a buyer in the ordinary course of business. Issue: 18 month tax statement needed to transfer title 32.03(a 2) A person may not transfer ownership of a manufactured home until all tax liens perfected on the home that have been timely filed with the Texas Department of Housing and Community Affairs have been extinguished or satisfied and released and any personal property taxes on the manufactured home which accrued on each January 1 that falls within the 18 months preceding the date of the sale have been paid. This subsection does not apply to the sale of a manufactured home in inventory. 14

15 Statutory Authority Pursuant to Tax Code Date of Sale January 1 - June 30 Statement of no taxes due must specify that: 1. The previous year s taxes have been paid. 2. The present year s taxes have been prepaid and escrowed. July 1 - September 30 The present year s taxes have been prepaid and escrowed. October 1 December 31 The present year s taxes have been billed and paid. 15

16 Statutory Authority Pursuant to Tax Code Issue: New buyer not responsible for tax liens not filed with the Department (b) A bona fide purchaser for value or the holder of a lien recorded on a manufactured home statement of ownership and location is not required to pay any taxes that have not been recorded with the Texas Department of Housing and Community Affairs. In this section, manufactured home has the meaning assigned by Section (b). Unless a tax lien has been filed timely with the Texas Department of Housing and Community Affairs, no taxing unit, nor anyone acting on its behalf, may use a tax warrant or any other method to attempt to execute or foreclose on the manufactured home. Issue: Taxpayer not allowed to choose which taxes to pay (c) A taxpayer may designate in writing which tax year will be credited with a particular payment. If a taxpayer pays all the amounts owing for a given year, the taxing unit shall issue a receipt for the payment of the taxes for the designated year. Issue: Homes never listed on the tax roll but has been on the property for some time (d) Notwithstanding any other provision of this section, if a manufactured home was omitted from the tax roll for either or both of the two preceding tax years, the taxing unit may file a tax lien within the 150 day period following the date on which the tax becomes delinquent. 16

17 Statutory Authority Pursuant to Tax Code Issue: Paying taxes not yet levied (before October) (e) If personal property taxes on a manufactured home have not been levied by the taxing unit, the taxing unit shall provide, upon request, an estimated amount of taxes computed by multiplying the taxable value of the manufactured home, according to the most recent certified appraisal roll for the taxing unit, by the taxing unit's adopted tax rate for the preceding tax year. In order to enable the transfer of the manufactured home, the tax collector shall accept the payment of the estimated personal property taxes and issue a certification to the Texas Department of Housing and Community Affairs that the estimated taxes are being held in escrow until the taxes are levied. Once the taxes are levied, the tax collector shall apply the escrowed sums to the levied taxes. At the time the tax collector accepts the payment of the taxes, the tax collector shall provide notice that the payment of the estimated taxes is an estimate that may be raised once the appraisal rolls for the year are certified and that the new owner may be liable for the payment of any difference between the tax established by the certified appraisal roll and the estimate actually paid. 17

18 Can be filed manually. Can be filed electronically. Filing Tax Liens Tax collectors can request access to the Department s tax records to record or release tax liens themselves. Deadline to file taxes for the previous year is June 30 of the following year. Tax liens can be filed against homes with no title record. Tax liens must be filed individually per home and include the taxing unit ID and the base amount owed. Tax collectors with multiple taxing units may pre register the taxing units they collect for by submitting a request for a Central Tax Collector s (CTC) number. This will enable them to file one tax lien that applies to all of the taxing units they have registered instead of filing each taxing unit individually. 18

19 Filing Tax Liens First and foremost, submit your tax liens as early as possible so that there is plenty of time for corrections to be made and resubmitted on incomplete filings. If ing your tax liens, never assume they are received. Always confirm receipt to ensure they weren t misrouted or blocked by a SPAM blocker. Tax liens submitted at the end of June must be post marked no later than June 30 th to be accepted. Tax liens cannot be combined under one taxing entity unless the central collector completes the Notification of Filing Status as a Central Tax Collector (CTC) Form. Manual filings will only be recorded if timely submitted on the required form and in the required format. Serial numbers on manual tax filings must indicate complete serial numbers. Tax liens filed with fictitious or non serial numbers will be rejected. Faxing manual filings and following up with mailed hard copies causes double work. It is preferred that all manual filings be faxed into the Department to If mailing tax liens and tax lien releases TOGETHER, please separate them into two groups. Tax liens recordings and releases should be signed, the typed name of the tax collector will not be accepted. 19

20 Manual Tax Lien Filing Form (required form) 20

21 CTC Account Request Form (2 pages) forms to: 21

22 Access Agreement Form 22

23 Database Information To access the Manufactured Housing Database select the blue button. 23

24 Login to MHD Database 24

25 Lien Preservation Section of the Tax Code allows a tax lien to be extinguished, canceled and removed from the ownership records of a manufactured home if the tax lien has been delinquent for more than four years and there has been no law suit filed to collect the taxes in question within the four year time period. Prior to removing any liens, the following step will be taken: On February 1 the first notice was sent to all taxing entities requesting confirmation of any tax suits filed on liens that were more than four years old. Upon confirmation, tax liens with tax suits will be preserved and tax liens without tax suits filed will be removed from the title records. On February 15 If no confirmation was received in 15 days, the Department sent a second and final notice requesting confirmation of this information from the tax collector. If after sixty days from the second request the taxing entity has still not responded the Department may remove the tax lien in question. Both the request by the Department and the response by the tax collector may be done via electronic mail or e mail to taxlien@tdhca.state.tx.us. Liens on record that are four years or older will be posted on the Tax Lien Information page of the website at: info.htm. Note: The Manufactured Housing Division has determined that based on legislative intent it appropriate to also preserve tax liens on record which have been deferred, are on a payment plan, have a judgment, and/or those under bankruptcy. 25

26 Running Report of Tax Liens Older Than 4 Years Enter CTC # to get a list of all liens older than four years To save, print, and edit report select SPREADSHEET button. 26

27 Running Report of Tax Liens Older Than 4 Years

28 Editing Report to Preserve Tax Liens Type in the REASON that any liens are eligible for preservation i. e. Tax suit filed Judgment Deferred Payment Plan Bankruptcy Liens ineligible for preservation will be deleted after 60 days from second notice from Division. 28

29 Frequently Asked Questions: Lien Preservation I have received notice from the Manufactured Housing Division requesting that I confirm liens with a tax suit filed. Will I receive the list of liens for my county? You will not be sent a list. For your convenience we have added a report to our website that enables you to run a separate list for each taxing entity. If you have a Central Tax Collector's number (CTC) you can enter that and run one report with all taxing entities listed which is much easier. When is the deadline to send in the list of tax liens that will be preserved? The deadline to respond is 60 days from receipt of the second notice sent by the Division. The statute does not provide for late submittals under any circumstances. Lien preservations must by received in hard copy or by midnight of the deadline date. Which tax liens can be preserved? We have determined it appropriate to preserve tax liens on record which are more than four years delinquent and which have a tax suit filed, have been deferred, are on a payment plan, have a judgment, and/or those under bankruptcy. 29

30 Frequently Asked Questions: Lien Preservation What format do we use when responding to the Department? We suggest you use the spreadsheet format used in the report that can be run from our website. If we make our own list what information do you need? You must include the: Home ID (label and /or serial); Tax Unit ID and or name; Tax roll account number (must match out system); Tax year (liens must be more than four years delinquent); and Reason lien should be preserved (tax suit filed, deferred, payment plan, judgment, or bankruptcy). If your office is sending the information into the Department for processing, the case number is required if suit is used for the reason. To run my list from the website what number do I use? Use your eight digit tax unit identification number issued by the Comptroller's office (Appraisal Districts or County Tax Offices). Keep in mind that you will need to run a separate report for each entity that you collect for. Can't I just run one report with all of the taxing entities I collect for? Yes, but only if you have a Central Tax Collector's number (CTC). 30

31 Frequently Asked Questions: Lien Preservation If I don't have a CTC number, can I still get one? Yes. Just complete the Central Tax Collector Request Form and the Access Agreement andreturnthem to the office at the or fax provided. Where should I my report to? Reports should be ed to taxlien@tdhca.state.tx.us Do I need to release the liens that cannot be preserved? No, you do not need to release any liens. A mass removal of liens pursuant to HB 3613 will be performed by the Department. But keep in mind those liens will be removed not released and will no longer be displayed in the homes detail. We experience system problems and could not get our lien preservations in by the deadline. Can you accept a late submittal since the problem was out of our control? No, unfortunately not. The statute does not provide for late submittals under any circumstances. Lien preservations must by received in hard copy or by midnight of the deadline date. 31

32 Abandonment Process Pursuant to of the Occupations Code, a real property owner may declare a manufactured home abandoned when: 1. The home has been left vacant for at least 4 months; 2. There is an indebtedness on the home; and 3. Notice to declare the home abandoned has been provided, via Certified Mail, return receipt requested, to the owner, lienholder, and all taxing entities that the home will be declared abandoned if not removed from the property in 45 days. On the 46 th day property owner may take ownership free of all liens including tax liens. 32

33 Tax Seizures For manufactured homes involved in a tax seizure the application for statement of ownership and location should consist of: Application From owner of record (tax payer) to new buyer Tax seizure documentation Confirmation that taxes are extinguished $55 fee 33

34 Tax Lien Contact Information Mailing Addresses TDHCA/Manufactured Housing Division P.O. Box Austin, Texas Assistance Cindy Bocz, Manager Fax: Harold White, Tax Lien Analyst Fax: General 34

35 Titling Contact Information Mailing Addresses TDHCA/Manufactured Housing Division P.O. Box Austin, Texas General Public Titling Assistance Customer Service: Direct Dial (512) Toll Free (800) Fax (512) Consumer Complaints Phone: (877) Fax: (512)