Taxes on a New Manufactured Home

[Carol]

When buying a new Manufactured home with Cash, who is responsible to pay the taxes on the new home when buying from a manufactured company? Does the company include it with the cost of the home or is it the new owners responsibility to pay the taxes on there own? If the owner is responsible where do they go and pay the taxes in California?

Any help would be appreciated...

Thanks in advance....
Carol

[David Oxhandler]

In most states sales tax is due on the purchase of a manufactured home and California is not an exception. The sales tax is due from the buyer, regardless if the purcase is a cash or financed transaction. In California retailers must collect sales tax, from the buyer for the state.

Recently, the California Manufactured Housing Institute has received many phone calls regarding manufactured homes sold out of California where sales tax is not being charged. These homes are then shipped to California and subsequently installed.

The law states that everyone who buys goods elsewhere that will be used, consumed or enjoyed inside California is liable to pay a use tax, even when the out-of-state retailer doesn't charge or collect sales tax.

The tax is designed to protect California merchants that might be at a competitive disadvantage when compared to the out-of-state retailer making sales to California customers without charging them sales tax. Although the tax rates of sales tax and use tax are the same, the difference is that California retailers must collect sales tax for the state and use tax is the responsibility of the consumer to report and pay.

The Consumer Use Tax section of the Board of Equalization receives reports from the DMV, FAA and HCD as well as the United States Coast Guard on identity transfers and registrations of vehicles, aircraft, manufactured homes and vessels. The Board requires the payment of use tax prior to completing transfer of title or new registration.

Failure to pay the use tax by the consumer can result in severe penalties. The in state retailer is obligated by law to collect and pay the sales tax