Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 362.0065

362.0065 Price Paid by Mobilehome Park Operators for Used Mobilehomes.When the mobilehome park operator is the successful bidder at a sale authorized by Civil Code section 798.1, reference must be made to the judgment entered by the Municipal Court which authorized the sale to determine the price paid and, thus, the measure of tax. That judgment will include the amount requested by and awarded to the park operator for rent, storage charges, attorney fees and costs. Unless the park operator's bid at the sale exceeds the judgment amount, the Board will assume that the judgment amount is the consideration or "price" for the sale.

A lienholder may transfer a mobilehome to the park operator in exchange for cancellation of a debt owed by the lienholder. When a lienholder exercises its right to foreclose on a mobilehome, it must undertake certain obligations to the park owner. These include payment of current rental charges after foreclosure and, if the park owner has commenced proceedings to terminate the tenancy, the lienholder must agree to pay the owner's past due rent obligations for 90 days prior to the date the notice of termination was given, plus current charges from the date of the notice of termination until the date the foreclosure sale was conducted. If, after foreclosure, the lienholder has not paid any of the amounts which it undertook to pay and transfers the mobilehome to the park operator in satisfaction of the obligation, the consideration paid by the mobilehome park operator for the transfer can be ascertained by examination of the rent contract which establishes the rent due. Applying that rental amount to a period computed as 90 days prior to the date of notice of termination of tenancy plus the number of days between the notice of termination of tenancy and the date of the foreclosure sale plus the number of days between the foreclosure sale and the transfer to the park operator will provide the initial amount. Any moneys actually paid by the lienholder to the park operator prior to the transfer are deducted from that amount, and the result is the consideration for the sale, and tax applies to this amount.

Finally, in the case where an estate conveys the mobilehome to the operator in satisfaction of a probate claim, the amount of the claim submitted by the operator to the probate court is the measure of tax. 8/8/96.