You might have an important question regarding buying manufactured homes: Do manufactured homes have property taxes? Various facts specify whether the house will take consideration according to the classification, location, and ownership of the manufactured home.
This guide dispenses things on property taxes as they apply to manufactured homes, their comparison to site-constructed homes, and relative information for compliance to avoid unnecessary charges.
Are Manufactured Homes Subject To Property Taxes?
Property taxes for manufactured homes do exist but depend on their individual classification. Here is how it applies:
Personal Property Taxes (Chattel Tax): If your manufactured home is not falsely identified as a permanently fixed building, remaining on wheels or standing on a lot that is being leased, it remains personal property (as does a vehicle). In this instance, you may pay a personal property tax instead of a real-property tax.
Real Property Taxes: If your manufactured home is permanently attached and has been classified as real property, then it will be taxed as real property, like an ordinary home.
Each state has different requirements, so it is advisable to contact your local tax assessor’s office.
Factors That Affect Property Taxes On Manufactured Homes
Several factors influence the amount of tax you’ll pay on your manufactured home:
Classification
As mentioned, a permanently affixed home is taxed as real estate, while a movable home is taxed as personal property.
Location & State Tax Laws
Property tax rates vary by state, county, and municipality. Some states have lower tax rates for manufactured homes, while others apply standard property tax rules.
Land Ownership
If you own the land: Your home and land will be taxed together under real estate property tax laws.
If you rent the land: You may only be responsible for personal property tax on the home itself.
Home Value and Depreciation
Manufactured homes may depreciate over time, which can lower tax assessments compared to site-built homes, which often appreciate in value.
Exemptions and Tax Rebate Schemes on the Local Level
Most states give tax exemptions or reductions to senior citizens, disabled individuals, and veteran homeowners. Also, many states allow homestead exemptions on the primary residences including manufactured homes.
Determine The Property Taxes For Your Manufactured House
To know the amount of property tax due on your manufactured home, follow these steps:
Examine your home’s Classification – Check your home title to see if it reads as real or personal property.
Go to the Local Tax Assessor Office – They would provide the tax rates and laws that apply to your area.
Check Your Home Value Assessment – It is usually based on a value that’s less than market value for the taxing of manufactured homes.
Inquire About Exemptions – Ask if you qualify for any property tax reductions or exemptions.
Comparing Manufactured Home Property Taxes To Traditional Homes
Property taxes on new manufactured homes are lower compared to those on traditional site-built homes. Here are reasons why:
Lower Assessed Values: The price tags of manufactured houses will usually be lower than site-built homes, and the lower price brings lower tax assessments.
Depreciation: Unlike traditional homes that appreciate over time, a manufactured home might depreciation in value which means lower taxes.
Differently Taxed: Tax liabilities may differ widely depending if the home is considered real or personal property.
Example:
Traditional home: $250,000 assessed value at 1.5% property tax = $3,750/year.
Manufactured Home: $100,000 assessed value at 1.2% property tax = $1,200/year.
How To Reduce Property Taxes On A Manufactured Home
If you’re looking to reduce the property taxes on your manufactured home, here are some strategies:
Tax exemptions are available in many states, including homestead exemptions, senior-citizen exemptions, and programs for tax relief for veterans.
Classification is paramount. If your home can be considered personal property, it may be taxed at a lower rate.
If you think your tax assessment is too high and the home being assessed is overvalued, appeal for a lowered tax bill.
Consider moving; some counties or states have lower tax rates for manufactured homes.
Maintain and Improve Your Home – Keeping your manufactured home in good condition can sometimes result in lower tax assessments.
State-by-State Breakdown of Manufactured Home Property Tax Rates
Since tax laws vary, here’s a quick breakdown of some state regulations:
Texas: Real property taxes apply if permanently affixed; personal property taxes apply otherwise.
California: Manufactured homes are taxed under a separate Mobilehome Property Tax system unless converted to real property.
Florida: If tied to the land, it’s taxed as real estate; otherwise, it falls under a vehicle registration system.
Michigan: Offers tax exemptions for owner-occupied manufactured homes.
New York: Property tax rules vary by county and municipality.
Conclusion
Manufactured homes can be subject to property taxes, but the amount depends on how the home is classified, where it’s located, and whether you own the land. Understanding these factors can help you plan for property taxes and potentially lower your tax burden.
If you need expert guidance on purchasing a manufactured or modular home in Texas, Spark Homes Texas is here to help! Contact us today at (830) 251-2110 for professional advice and assistance.
FAQs
Do all manufactured homes have property taxes?
Not necessarily—taxes depend on whether the home is classified as real estate or personal property.
How can I find out my manufactured home’s property tax rate?
Contact your local tax assessor’s office for details on rates and classification.
Are manufactured home taxes lower than traditional home taxes?
Yes, manufactured homes typically have lower property taxes due to their lower assessed value.
Can I reduce my manufactured home’s property taxes?
Yes, you can apply for tax exemptions, appeal assessments, and ensure proper classification to lower your tax bill.
What happens if I don’t pay property taxes on my manufactured home?
Failure to pay property taxes may lead to penalties, liens, or foreclosure, depending on your local laws.