The Rules 

In California, mobile homes were once taxed as vehicles. But after the law changed in 1979, mobile homes sold after July 1, 1980 were subjected to property taxes rather than vehicle license and registration fees. Each county calculates and collects property taxes and subjects them to state regulations and restrictions. 

There are some differences, however, based on where your mobile home is located. If you own the underlying land, you’ll be charged property taxes. On the other hand, if your home sits on rented land or in a mobile home park, you’ll be liable for taxes based on the value of your home’s structure, rather than for the value of the land on which it sits.  

In addition to property tax, mobile home owners are also charged use tax in cases where sales tax would apply. Use tax refers simply to a tax the government imposes on property owners for the use and enjoyment of their property. Typically, use tax is assessed and paid separately from typical property tax. 

The Exceptions 

Generally, sales and use tax do not apply to the sale of used mobile homes that are considered real property in California (and would otherwise be subject to property taxes). According to the State of California, a “used” mobile home is defined as one that has been “previously sold and registered or titled with any of the following: 1) the Department of Housing and Community Development (HCD) or with an appropriate agency or authority; 2) any other state, the District of Columbia, or a territory or possession of the United States; 3) a foreign state, province, or country.” A new mobile home does not fit this definition and thus does implicate sales and use tax.  

Conversely, property tax applies to used mobile homes that are located on a permanent foundation IF they meet the following requirements: 1) The home was originally sold new on or after July 1, 1980, or 2) it was originally sold new before July 1, 1980, and later transferred to the property tax rolls. 

There are a few other exceptions, for instance, if you buy your mobile home from a family member, you may be exempt from paying tax. If you claim an exemption in this situation, you will need to provide proof of your family relationship with the seller when you register your mobile home. 

If you’d like to learn more about your tax liability for your used or new mobile home, be sure to reach out to an experienced accountant or attorney. If you’d like to explore how Harmony Communities can help you find a place to call home, we would love to hear from you. 

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At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful. 

The post Sales and Use Tax for the Sale of Pre-Owned Manufactured Homes appeared first on Other CMS.

The answer?

They are essentially the same. The disparate terms are applied based on whenthe homes were made.

Pre vs. Post-1976

Homes built prior to 1976 were labeled “modular” homes because they were constructed in accordance with the HUD standards in place at that time. For homes constructed post-1976, we apply the term “manufactured.” 

Beyond the timeline, the differences between the two are minimal. Both modular homes and manufactured homes are constructed the same way: Both are versions of prefabricated mobile homes, created in pieces in factories before being shipped to building sites, where they are assembled. They are both built to conform to relevant state, local, or regional building codes, and are checked by local inspectors for compliance with structural requirements. 

In most jurisdictions, manufactured or modular homes are less expensive per square foot than site-built homes. Nonetheless, they are intended to have the same quality and longevity. 

HUD’s Regulation of Manufactured and Modular Homes

HUD sets reasonable standardsfor the construction of mobile homes, ensuring that they are as safe as possible for their residents. The post-1976 standardsthat labeled these homes “manufactured” representan increase in quality, as the recent HUD standards have required subsequent updates to the homes. 

For instance, HUD requires manufactured homes to be a minimum of 400 square feet and have ceiling heightsin habitable rooms and bathrooms of at least seven feet. They also must have at least two exterior doors located at least twelve feet from each other in single wide units and twenty feet in double-wideunits. 

Some other guidelines include:

• Each one-person bedroom must have at least 50 square feet of floor space, and those meant for two people must have at least 70 square feet of floor space. 
• The homes must have enough windows for ventilationand must feature mechanical ventilation systems in kitchens and bathrooms. 
• Each bedroom must have at least one exterior window, along with ready access to an exterior egress point.

As standards continually evolve, manufactured and modular homes will continually be made safer, better quality, and more habitable for their residents. To learn more about manufactured homes or for additional resources, please visit the WesternManufactured Housing Communities Association’s websiteor the website for the Manufactured Housing Institute.

_________________________________________________________________________________________________________________________________________________________________________

At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful.

The post Manufactured Homes vs. Modular Homes: One and the Same appeared first on Other CMS.