MH Tax Liens Beyond Four Year Limit Removed by MH Division of TDHCA

The Manufactured Housing Division has informed TMHA and the public that all tax liens for personal property manufactured homes that were not properly preserved by filing a collection law suit within four years of the lien being attached have been removed from the state’s titling records. These removed liens are no longer eligible for collection, nor will they encumber a manufactured home title.

Recall that in 2013 TMHA advocated at the Texas Legislature for HB 3613 which would eliminate any personal property tax liens on a manufactured home that was beyond the four year statute of limitations if a collection law suit had not been filed, the liens were on an agreed payment plan, had been deferred, or in a bankruptcy situation. The bill was signed into law June 14, 2013 and became effective in September of that year.

Once the proper notices were sent to taxing authorities in accordance with the law, an estimated 1.2 million tax liens older than four years where removed. Then in every subsequent year since passage all liens that turn older than four years old, following the two notice requirements to taxing entities, are also eliminated.

MH TDHCA is reporting with the cut off applying to all 2011 expired tax liens 222,476 personal property tax liens have now been removed.