February 3, 1975

The Honorable James 0. Mullin County Attorney Parker County Weatherford, Texas 76986 Opinion No. H- 514 Re: Taxation ofland upon which mobile homes are situated.

Dear Mr. Mullin:

You call to our attention the fact that there are thousands of small tracts ofland throughout the state (1)which are being purchased ona contract for deed; (2) upon which a mobile home has been placed; (3) where the property has been rendered as ahomestead and (4) where the landowners have refused to pay the taxes onthe valuation ofthe mobile home when the contract is canceled. Inthat context you have submitted three questions: 1. Should property which is being sold under a

contract topurchase be assessed for taxation against the purchaser?
2. Ifquestion 1is answered affirmatively, can the seller beheld liable for the value ofimprovements in the form ofamobile home?
3. Can the land be held liable for taxes against a mobile home which was purchased from a person other than the vendor ofthe land andwas moved onto the land later? The taxation ofproperty is governed by Chapter 6of Title 122, Vernon’s Texas Civil Statutes. For the purposes oftaxation, “real property” is defined in article 7146 as including the land itself and:

p. 2318The Honorable James 0. Mullin page 2 (H-514)

. . . forms ofhousing adaptable to motivation bya power connected thereto commonly called “trailers” or “mobile homes, ”which are or can be used for residential, business, commercial, or office purposes, except those located within the boundaries ofan assessing unit for less than 60,days or unoccupied and for sale. The value ofany trailer or mobile home shall not be included in the assessment ofthe land onwhich it is located, unless both theland and the trailer or mobile home are owned by the same person. Ifthe owner of the trailer or mobile home is not the owner of the land, the trailer or mobile home shall be rendered for taxation separately from the land and taxes assessed shall be aliability ofthe owner ofthe trailer or mobile home, and not aliability ofth,elandowner. Land onwhich a trailer or mobile home is located shall not be subject to execution for the collection oftaxes assessed against a trailer or mobile home unless both are owned by the same person. While contracts may vary in their terms and you have submitted no particu1a.r contract to us, generally it is held that the purchaser of land under a contract of sale acquires the equitable title to the land from the time he takes possession, even though legal title may not pass until actual delivery ofthe deed. Bucher v. Employers Casualty Company, 409 S.W. 2d 583 (Tex. Civ. App. --Fort Worth 1966, nowrit) ;Shambaugh v. Moore, 54 S.W. 2d 211(Tex. Civ. App. --Beaumont 1932, writ ref’d); Ingram v. Central Bitulithic Company, 51S.W. 2d 1067, (Tex. CXv. App. --Waco 1932, writ ref’d). Likewise, it is generally held that the equitable title is the taxable title where the grantee takes possession under a contract ofsale, Texas Turnpike Company v. Dallas County, 271S.W. 2d 400 (Tex. Sup. 1954); City of Garland v. Wentzel, 294 S.W. 2d 145 (Tex. Civ. App. --Dallas 1956, writ ref’d, n.r. e.).

The answer toyour first question, therefore, would appear to be that, under the usual contract to purchase, the real property taxes should be assessed against the purchaser in possession.

p. 2319The Honorable James 0. Mullin page 3 (H-514)

Inanswer toyour second question, whether or not the value of improvements inthe form ofa mobile home is to beincluded in the taxable value of real property depends upon whether the conditions ofarticle 7146 are met. The value ofa mobile home is to be included unless it is within the boundaries ofthe taxing unit for less than 60 days or unless it is unoccupied and for sale. It should not be included unless both the land and the mobile home are owned by the same person.

As toyour third question we believe article 7146 requires that if, at the time ofassessment, title to the mobile home and the taxable interest in the land are inthe same person, the equitable interest in the land may be liable for taxes against the mobile home. However, as article 7146 expressly provides, the land is not subject to execution for the collection oftaxes assessed against a trailer or mobile home unless both are owned by the same person, and we construe “owned” to include equitable title. SUMMARY Under ausual contract of sale, the purchaser of land acquires equitable title and, ifhe is inpossession, is liable for taxes assessed against the property. Where a mobile home is placed onland and both are owned by the same person, the value ofthe mobile home should beincluded with the value ofthe land unless it is unoccupied and for sale or has been within the taxing jurisdiction for less than 60 days. Under similar circumstances, where both are owned by the same person, land may be charged with liability for taxes rendered against a mobile home. Very truly yours,

Attorney General of Texas

p. 2320- .

The Honorable James 0. Mullin page 4 (H-514)

APPROVED:

DAVID M. KENDALL, First Assistant

C. ROBERT HEATH, Chairman Opinion Committee

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