Mobile homes or manufactured homes are typically a transportable housing structure that contains more than one dwelling. It is built in such a way that it can be used with or without a foundation system. Why do people choose such dwellings? Because it offers flexibility, affordability, and a sense of community.
But, the main lingering question with such homes is: do mobile home owners have to pay property tax? The answer is not a simple yes or a no! It depends on several factors, like where you live, what your mobile home classification is, and whether the land beneath the home is yours.
This detailed guide explains everything you need to know as a mobile homeowner:
What is a Mobile Home?
A mobile home or a manufactured home is a prefabricated structure that is built in a factory and is portable. It can be transported in one or more sections and contains one or more dwellings. It is a structure that can be used with or without a foundation system. The term “mobile home” sometimes refers to dwellings constructed prior to June 15, 1976; however, the U.S. Department of Housing and Urban Development (HUD) defines manufactured homes as those constructed after that date, following government regulations. The terms are frequently used interchangeably for tax purposes.
How Are The Taxes Billed For a Mobile Home and a Modular Home?
A mobile house is generally one that does not have a foundation system. The local property tax for mobile homes is billed separately from the parcel where the mobile home is located.
On the other hand, a modular home is one with a strong foundation and structure. The annual property tax bill lists a modular home as an improvement. Parcel taxes and property taxes for modular homes are combined into a single bill.
How Are Mobile Homes Classified For Tax Purposes?
Understanding mobile home taxes requires you to understand the classification of your home. This includes: personal property or real property.
Real Property
Real property is one where the mobile home is permanently fixed to the land you own. Here, the property is taxed as real estate, just like in the case of a traditional house. A local tax assessor will hand over the tax bill to you.
Personal Property
Under personal property, the mobile home is not attached to the land and can be transported elsewhere. This means it is sitting on rented land, in a mobile home park, or can be moved. Here, the tax law will be similar to a vehicle or boat. The home is taxed as personal property.
What Are The Factors Affecting Mobile Home Property Tax?
There are several factors affecting the mobile home property tax. Mobile homes are assessed based on the following:
- Home’s Classification: Whether the home is taxed as personal or real property.
- Land Ownership: Whether the land the home is on is rented or owned by you.
- State or Local Laws: Tax rates, exemptions, and assessment methods vary widely
- Manufacturing Year: If the house was built before 1976. In this case, the taxation will be different.
- Permanent Foundation: If your home sits on real land and a foundation system, it will be taxed as real property.
- Location: The tax bill depends on the state, country, and school district.
When Are The Property Taxes Due On Mobile Homes?
There are two payment slips on your tax bill. You have the option to pay both installments at once or each one separately. By the end of business on December 10, the first installment, which is due on November 1st, is past due. The second installment is past due at the end of business on April 10 and is due on February 1. The Treasurer and Tax Collector is required by law to extend the delinquency date to the end of business on the following business day if it falls on a Saturday or Sunday.
What Is The State-Wise Tax Difference on Mobile Homes?
The United States has quite different property tax regulations for mobile homes. Here are a few instances:
California: Unless they are permanently attached to land, in which case they are taxed as real property, mobile homes are often subject to the Vehicle Licence Fee (VLF).
Texas: Unless they are affixed to your own land and have a “Statement of Ownership and Location” filed, which makes them real property, mobile homes are regarded as personal property.
According to section 158.154 under Other Taxes, (a) The rules in Title 1 of this chapter will apply to the taxation of all manufactured houses. A manufactured house cannot be subject to any other taxes imposed or collected by a political subdivision in this state.
(b) Under Chapter 152 of this code, manufactured homes are exempt from motor vehicle taxes, and under Chapter 151 of this code, they are not taxable items.
Florida: There is an annual license tax (decal fee) for mobile homes on rental property. The house is taxed as real property if it is permanently attached to land that you own.
New York: If a mobile home is affixed to land, it is considered real property; if not, it is considered personal property.
Michigan: In lieu of standard property taxes, mobile homes in parks are subject to a special tax known as the “Specific Tax for Mobile Home Parks.”
For the most up-to-date information, always consult your state department of revenue or local tax assessor. After reading the tax laws of different states, do you feel that purchasing a mobile home is a good investment? Read here.
How To Determine Your Mobile Home’s Tax Status?
If you’re still wondering, do mobile home owners have to pay property tax?, you must determine your home’s tax status as a real or personal property. Here’s how to check:
- Check Your Title: If your name is present on the land deed and the home is affixed to the foundation, it is likely real property.
- Contact Your Local Tax Assessor: They can tell whether your home is real or personal property.
- Review Your Tax Bill: See if the bill you receive is a real property tax bill or a vehicle registration bill.
- Look for a Permanent Foundation: If your home is on a permanent foundation, it will be taxed as real property.
Can My Mobile Home Automatically Become Subject to Local Property Tax?
The Treasurer and Tax Collector of the county in which the mobile home is located must receive local property taxes from new mobile homes sold on or after July 1, 1980.
New manufactured homes may also be liable to local property taxes for the following reasons:
- Prior to October 1, 1984, the mobile home was listed as delinquent by the California Department of Housing and Community Development. In-Lieu taxes are past due for 120 days or more.
- Known as a modular home, the house is fixed to the foundation.
Exemptions and Considerations for Taxpayers
For some manufactured home owners, some states provide concessions or lower rates:
- People with disabilities, veterans, and senior citizens may be eligible for property tax assistance.
- Certain taxes may not apply to older mobile homes, which were frequently built before 1976.
- If the house is your principal residence, you may be eligible for homestead exemptions.
- For information on potential exemptions and how to apply, contact your local tax office.
Final Takeaway
Finally, you must have your answer to “Do mobile home owners have to pay property tax?”. Remember, understanding the laws of different states, what classifies your home, and how the tax is billed are important considerations to think about. We advise you to get in touch with a professional and qualified real estate agent who can navigate the process for you seamlessly.
Frequently Asked Questions
How Can You Convert A Mobile Home From Personal to Real Property?
This usually entails filing the necessary papers with your local government and permanently attaching the house to the land you own.
Is Purchasing A Mobile Home Worthy?
Yes, purchasing a mobile home is a worthy investment considering the low maintenance, rental demand, and low-cost maintenance.
Are There Any States That Exempt Tax For Mobile Homes?
Mobile homes are subject to some kind of tax or levy in every state, albeit the amount and kind differ. Certain residences are excluded from some states’ extremely low fees.
