Previously, some towns assessed the homes as real property and some as personal property. In addition to classifying mobile manufactured homes as real property, the act set up a system for recording mobile manufactured home titles administered by town clerks. The act phased-in any adverse tax impacts in towns that had been classifying the homes as personal property. The bill was based on one of the recommendations of a task force created by legislation in 1982. The task force recommended classifying the homes as real property because it would make it easier for prospective purchasers to finance their purchases with mortgages rather than with installment loans.
Mortgages are generally available with lower interest rates and a longer repayment period.
The task force report also stated that classifying the homes as real property would make it possible for mobile manufactured homeowners to obtain insurance for actual replacement value. The Finance, Revenue and Bonding Committee held a public hearing on the bill. All those who testified spoke in favor. Representative Emmons introduced the bill in the House of Representatives. She made the point that the bill gives owners of these homes equal status with other property owners of a town.