closing costs?

[rmurray]

Every state has a different way to tax the purchase of new and used manufactured homes...

Many states still tax the whole purchase price (new or used) to collect the most amount of money they can...My state GA is one of them still punishing our customers...

Many states have tried to make manufactured homes equally taxed with stick built...Stick built homes have no sales tax...but the builder pays sales tax on every part they buy..therefore there is sales tax built into the price..Since manufactured homes cross statelines..manufacturers do not pay sales tax on the materials they buy...Many progressive states in fairness to the industry have all sorts of formulas to even the playing field..Usually they attempt to tax the materials only...This is the case for those mentioned here..

Also in fairness..some states do not tax used homes..since used stick home have no sales tax involved...Unfortunately my state does not see it that way..

There are a few VERY progressive states that use sales tax to attempt to influence buyer behavour..Example..South Carolina (half my sales go there) charges only $ 300 sales tax on the most energy efficient homes..They know it is better and cheaper to encourage lower energy useage..then to build new power plants..Maybe CA should look at the SC model..

Check with your local revenue department...One thing for sure in every state..It is blatantly illegal for a dealer to over charge tax and keep the money..BUT..this is a line of the purchase aggreement few customers actually review..

[Art Rigsby]

Dan,

I purchased a MH in Lake County, CA late last year and do not pay any sales tax. On the sales contract it has the following line "SALES TAX (ITEMS NOT INTEGRAL TO HOME)" and that line is empty. It does state in the contract that if the MH is used for any purpose other that residence, I may be liable for taxes.

Art

[Threnody]

SC has a $300 cap on sales tax period. If you buy a $40,000 mercedes, you still only have to pay $300 in sales tax.

[rmurray]

Sorry....sold cars in SC...5% in some counties and 6% in others...No caps..

Actually the tax on manufactured homes with good insulation is only $ 300...but there is a 5% tax on the appliances, furniture, steps, air conditioner and blocks...Most dealers find it very confusing and charge a fixed price and settle up later with the government..

[Dan F]

Hi Art,
"Don't believe the hype", the dealer pays the tax to the factory and then just adds it to the price of the home. I found this out when I asked a local dealer to compete with an Oregon dealer. He gave me the "well their home doesn't include tax". After doing some research I found he was correct, so I contacted some dept. of Housing in Sacramento and that was the formulas they gave me. I have to pay tax once the home is set in CA. I called over a dozen agencies before I got a straight answer.

[Art Rigsby]

Dan,

Wonder why they would want to hide the sales tax? Doesn't make a lot of sense but then, a lot of things in the MH business don't make sense.

Art

[Jon]

Babs:
In New York new manufactured homes are subject to sales tax (used homes are not). The sales tax is applied to 70%, rather than 100%, of those portions of the sale transaction that are subject to sales tax. In this way the State of New York gives a "break" to a new home buyer.
A couple of notes on the matter of taxes: In my opinion not only does a new manufactured home buyer deserve a break in sales tax, the sales tax should not be applied at all. Manufactured homes are the only form of housing in New York that is subject to both a sales tax and a property tax (the property tax generally being assessed as "an improvement" to real property).
There is a movement to have manufactured homes deemed real property rather than personal property as is now the case. This may, may, prove helpful with respect to taxes but could generate other issues. In any case, it is too early in the process to know how or if this movement will gain traction.
This one issue alone, taxes, artifically increases the cost of manufactured housing to consumers. Surely, there will be taxes. But the NYS legislature should remove sales tax from the shoulders of a home buyer.
Jon

[Renee]

I am right on the verge of buying a home myself. The loan department, like some of the other messages on this page have mentioned, there would be a "sales tax" since a MH is considered "personal property" -- the $400 that you mentioned just sounded very familiar - my loan guy said that to avoid paying the sales tax (which could be $3,500 on the home I was buying)... I should go and file an "excise tax" form - and then I would only be paying $400. This could be what the guy is talking about. Don't think bad about him right away, just ask him what he meant -- if it has anything to do with this "excise tax" form...he's probably trying to save you money! You can still go through with the whole process until it gets down to the final "sign here" paperwork. Don't sign anything you don't agree with. If you don't understand it, find someone who does. Simple as that?

Sincerely,
Renee

[rmurray]

What state are you in?