WHEREAS a manufactured home is not considered Real Property, yet may have delinquent taxes owing; AND WHEREAS the current method of recovery of taxes by means of distress pursuant to Section 252 of the Community Charter is expensive and completely ineffective: THEREFORE BE IT RESOLVED that for the purposes of the collection of delinquent property taxes on a manufactured home, a manufactured home shall be treated as Real Property and follow the guideline for tax collection as outlined in Section 254 of the Community Charter and Section 403-427 of the Local Government Act.
Ministry of Community Services The Ministry appreciates the difficulties that some municipalities experience when trying to collect unpaid taxes on manufactured homes. Because a manufactured home on a leased pad does not meet the legal definition of real property, the remedy of tax sale is not available. The Ministry understands that manufactured homes with delinquent taxes are often of very low value and may be in poor condition. If these homes were required to be offered at tax sale this would often result in the municipality becoming the purchaser, with the associated responsibilities for the property. It would not guarantee collection of the delinquent taxes. In addition, a manufactured home purchased at tax sale would not guarantee the purchaser a right to occupy the unit at its current location in a manufactured home park, as this is a decision of the park owner. Recognizing that that there is no simple legislative solution to this issue, the Ministry encourages municipalities to use the existing legal and administrative means to collect taxes for these properties. These remedies include: small claims proceedings, registering a tax lien through the Manufactured Home registry and distress sales.