Minnesota Mobile Home Tax Issues
Minnesota Mobile Home Tax Issues
Minnesota Mobile Home Tax Issues – When Not Subject to Sales Tax
While the first retail sale of a Minnesota Manufactured Home is subject to Minnesota’s sales tax, a resale of a used Minnesota Manufactured Home which was previously subject to Minnesota’s sales tax is statutorily exempt from the Minnesota sales and use tax.
Minnesota Mobile Home Tax Issues – Property Tax
While a Minnesota Manufactured Home can become classified for property tax purposes as an improvement to real estate if it is affixed to land which is owned by the owner of the Home, if it is not so affixed to land, it is subject to taxation as personal property.
- Minnesota required a Minnesota Manufactured Home to be licensed as a motor vehicle, and
- the owner of a Minnesota Manufactured Home paid an annual registration fee to the State of Minnesota, just like other vehicle owners.
However, since 1972:
- the value of a Minnesota Manufactured Home has been assessed on an annual basis by the county property tax assessor, and
- property taxes are paid to the County in which the home is located, in lieu of a motor vehicle registration fee.
Minnesota Mobile Home Tax Issues – Personal Property Tax
A Minnesota Manufactured Home classified as personal property will be assessed and valued as of January 2nd in a given year, and subject to taxation on such value in the same year.
Minnesota Mobile Home Tax Issues – Real Property Tax
In contrast, a Minnesota Manufactured Home classified as real property – while also assessed and valued as of January 2nd in a given year – will not be subject to taxation on such value until the following year.
The property taxes levied on a Minnesota Manufactured Home which is classified as personal property are similar to the property taxes levied on a Minnesota Manufactured Home classified as real property.
Generally, regardless of how a Minnesota Manufactured Home is classified for taxation, the same market value tax rates, and applicable tax credits, will be applicable to both property types.
However, when a Minnesota Manufactured Home is classified as real property, there will be:
- differences in valuation attributable to the land, and
- a corresponding increase in property taxes – although there will be no obligation to pay any rent when the land is owned by the Home owner.
A personal property classification applies when:
- the Home owner leases the land on which a Minnesota Manufactured Home is situated;
- the Minnesota Manufactured Home is permanently affixed on a foundation, or otherwise installed according to building codes/standards; and
- the Home is connected to public or private utilities and services.
A real property classification applies when:
- the homeowner holds title to the land upon which it is situated;
- the home is permanently affixed on a foundation, or otherwise installed according to building codes/standards; and
- the home is connected to public or private utilities and services.
Note that the only difference between the two classifications is in the first criteria – whether the homeowner:
- owns the land on which the Minnesota Manufactured Home the Home is situated, or
- leases such land from someone other than the Home owner.
(i) Minnesota Manufactured Home – Personal Property Tax Statements
Personal property tax statements for Minnesota Manufactured Homes are typically mailed to the homeowners on or before July 15th of each year.
The first one-half of property taxes for a Minnesota Manufactured Home which has been classified for tax purposes as personal property is generally due on or before August 31, and the second one-half of property taxes is due on November 15.
However, if the entire tax amount due on a home is $50.00 or less, the total tax is generally due on August 31.
(ii) Minnesota Manufactured Home – Real Property Taxes
The real property tax statement for a Minnesota Manufactured Home is typically mailed to the homeowner on or before March 31 of each year.
The first one-half of property taxes for a Minnesota Manufactured Home which has been classified for tax purposes as real property is due on or before May 15, and the second one-half of property taxes is due on October 15.
(iii) Minnesota Manufactured Home – Homestead Property Tax Status
Homestead property tax status is available with respect to a Minnesota Manufactured Home.
The purchaser of a Minnesota Manufactured Home will need to file an application with the County assessor for Homestead status, which must be accompanied by a photocopy of the Certificate of Title used as a Bill of Sale to transfer title to the purchaser.
Sale of a Minnesota Manufactured Home – Minnesota Mobile Home Tax Issues
Upon the sale of a Minnesota Manufactured Home:
- certain information must be obtained from the buyer, and
- both the buyer and seller have responsibilities with respect to the transfer of title at the office of the Department of Public Safety – Driver and Vehicle Services Division.
However, before a County registrar can transfer ownership of a Minnesota Manufactured Home, the following requirements must be satisfied:
(1) the seller must provide a statement from the assessor and auditor-treasurer of the county where the home is located, certifying that all personal property taxes levied on the Minnesota Manufactured Home in the name of the current owner at the time of transfer have been paid, and
(2) a current Certificate of Title – with any required lien releases – must be presented to the office of the Department of Public Safety – Driver and Vehicle Services Division.
Additionally, the seller, as the taxpayer of record at the county, should provide proof of sale to the assessor and/or the County Auditor/Treasurer with respect to the change in ownership – by providing a copy of the purchase agreement, Bill of Sale, and/or Certificate of Title – whichever is required by the particular County.
Once a new Certificate of Title has been issued, the buyer should also furnish a copy to the assessor to ensure that the county assessment records are updated, and the buyer receives the new property tax statement.
Relocation of a Minnesota Manufactured Home – Minnesota Mobile Home Tax Issues
A permit must be obtained from the Minnesota Commissioner of Transportation – and perhaps local authorities – before a Minnesota Manufactured Home can be relocated.
Such a permit will not be issued by the Minnesota Commissioner of Transportation until the person seeking to move a home has presented a certified statement from the assessor and auditor-treasurer in the county where the home is located, stating that:
- the home has been assessed, and that
- all personal or real property taxes have been paid.
In addition, the owner should inform the county assessor with respect to the movement of the Home, in order to ensure that the county assessment records are updated.
A person who fails to obtain the proper documents to move a Minnesota Manufactured Home may be subject to a fine.
Conclusion – Minnesota Mobile Home Tax Issues
Please contact private Minnesota Attorney Gary C. Dahle for assistance with:
- the preparation of any Minnesota Manufactured Home resale purchase agreement or lease,
- issues relating to seller financing of a Minnesota Manufactured Home resale, or
- other title or security interest concerns.
Legal fees will be applicable – and advance payment may be required.
If you have an e-mail account, and a good Internet connection, Attorney Gary C. Dahle can assist you in any Minnesota County.
Copyright 2018 – All Rights Reserved.
2704 County Road 10, Mounds View, MN 55112
Phone: 763-780-8390 Fax: 763-780-1735
Information provided herein is only for general informational and educational purposes. The laws regarding Minnesota manufactured homes involve many complex legal issues.
If you have a specific legal problem about which you are seeking advice, please consult with a Minnesota attorney at law.
Gary C. Dahle, Attorney at Law, is licensed to practice law only in the State of Minnesota, in the United States of America.
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Nothing herein will be deemed to be the practice of law or the provision of legal advice. Clients are accepted by Gary C. Dahle, Attorney at Law, only after preliminary personal communications with him, and subject to mutual agreement on terms of representation.
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