Untitled Texas Attorney General Opinion ( 1975 )

February 3, 1975
The Honorable James 0. Mullin Opinion No. H- 514
County Attorney
Parker County Re: Taxation of land upon which
Weatherford, Texas 76986 mobile homes are situated.
Dear Mr. Mullin:
You call to our attention the fact that there are thousands of small
tracts of land throughout the state (1) which are being purchased on a
contract for deed; (2) upon which a mobile home has been placed; (3)
where the property has been rendered as a homestead and (4) where the
landowners have refused to pay the taxes on the valuation of the mobile
home when the contract is canceled. In that context you have submitted
three questions:
1. Should property which is being sold under a
contract to purchase be assessed for taxation
against the purchaser?
2. If question 1 is answered affirmatively, can
the seller be held liable for the value of improve-
ments in the form of a mobile home?
3. Can the land be held liable for taxes against
a mobile home which was purchased from a person
other than the vendor of the land and was moved
onto the land later?
The taxation of property is governed by Chapter 6 of Title 122,
Vernon’s Texas Civil Statutes. For the purposes of taxation, “real
property” is defined in article 7146 as including the land itself and:
p. 2318
The Honorable James 0. Mullin page 2 (H-514)
. . . forms of housing adaptable to motivation
by a power connected thereto commonly called “trailers”
or “mobile homes, ” which are or can be used for resi-
dential, business, commercial, or office purposes,
except those located within the boundaries of an assess-
ing unit for less than 60 ,days or unoccupied and for sale.
The value of any trailer or mobile home shall not be
included in the assessment of the land on which it is
located, unless both the land and the trailer or mobile
home are owned by the same person. If the 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 a liability of the owner of the trailer or mobile
home, and not a liability of th,e landowner. Land on which
a trailer or mobile home is located shall not be subject
to execution for the collection of taxes 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 of the deed. Bucher v. Employers Casualty Company, 409
S. W. 2d 583 (Tex. Civ. App. --Fort Worth 1966, no writ) ; Shambaugh v.
Moore, 54 S. W. 2d 211 (Tex. Civ. App. --Beaumont 1932, writ ref’d);
Ingram v. Central Bitulithic Company, 51 S. 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
of sale, Texas Turnpike Company v. Dallas County, 271 S. 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 to your 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. 2319
The Honorable James 0. Mullin page 3 (H- 514)
In answer to your second question, whether or not the value of
improvements in the form of a mobile home is to be included in the taxable
value of real property depends upon whether the conditions of article 7146
are met. The value of a mobile home is to be included unless it is within
the boundaries of the 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 to your third question we believe article 7146 requires that if,
at the time of assessment, title to the mobile home and the taxable
interest in the land are in the 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 of taxes 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 a usual contract of sale, the purchaser of
land acquires equitable title and, if he is in possession,
is liable for taxes assessed against the property. Where
a mobile home is placed on land and both are owned by
the same person, the value of the mobile home should
be included with the value of the land unless it is un-
occupied 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
p. 2321