No Sales Tax

[J.Glaze]

One of the most frustrating things about buying a mobile home was the lack of information. We were waiting on an appraisal when I stumbled across Randy's book on the net. I knew almost nothing about mobile holmes or how they were constructed. No clue on financing. Quite frankly, my wife and I were not happy because we had no idea what we were doing.Studying the book helped me to ask the right questions and get the best value for our money. Our price range was $70k focusing primarily on structure. I'm not a do-it-yourself person so I wanted a well built home that would last. I got 2x6 ext. and 2x4 int. with 2x6 floor joists on 16'" centers. Fully taped and textured with 1/2" sheetrock. I really wanted the metal roof and Hardiboard Lap siding but it didn't fit the budget. We tried to keep in mind that everything added to the loan would be financed for thirty years with interest! Plus certain options ordered from the factory have a huge markup. Things like external power outlets and fawcets can be added later. The best advice I can give anyone shopping for a mobile home is call around. We looked at Fleetwoods, Champions, Palm Harbors and Karstens. Usually your best price will come from the last dealer you talked to. It was easier for us to get a base price (including setup and delivery) to compare to rather then go through our list of options with every dealer. Remember to compare apples to apples. While calling to compare prices I came across a dealer who didn't charge sales tax because his dealership was located on an Indian reservation. Saved us 6.8%, which will just about cover our closing costs. Now I know we are getting a well built home at a great price!! Thanks for the help!

[rmurray]

Are you sure that you do not have to pay the sales tax your self...I would think so...Better check with your local tax authorities..

That is like a customer buying from me in GA and taking the home to NC...I would not have to charge tax...BUT..they would have to pay..

[John]

He doesn't need to pay sales tax if it stays on reservation land. When you register the home they might make you pay the tax then.

[John]

Mr. Murray, Concerning your statement on sales tax. If I purchase a manufactured home from a dealer in PA. (whch has a state sales tax) and have the home set up in DE which has no state sales tax,would I pay any sales tax?
Thank you, John

[Dan O'Flaherty]

The talk about sales tax is interesting, I have always been told sales tax is generated from the site the home is taken to.
Having said that, I am wondering, did the sales center on the reserve use the sales tax issue as a sales point? Because if the retailer has been doing business for any amount of time he/she should know that off reservation house placments will generate sales tax, if it exists at the point of landing.
If the sales center used that to sell the home, I might be concerned about everything else they said.
It is sad to say that it would not surprise anyone that a retailers would use the sales tax advantage that does not exist to sell homes. I hope that didn't happen.

[rmurray]

Every state has different rules on sales tax...Most often the tax is collected for the state that the home is going to...but PA might require the dealer to collect the tax and you to request a refund..You will have to ask the dealer about this..If he sells you the home with no tax...the rules of PA will no longer effect you...only him..

I know for sure..that if you bought in DE and moved it to PA....PA would get their money from you some way...

[rmurray]

You are correct...tax is by the location the home is delivered to...

Most dealers that cross state line often will have tax collection licenses from all the states they commonly enter and will collect and pay the tax....but..if you buy from a dealer who seldom crosses the line...he might have to collect his states tax...you pay your states tax and apply for refund from the state the dealer is in..This will very by state..

This kind of misinformation is common by sales persons when selling...In our case we are in GA with 7% sales tax...Over 1/2 of our homes go to SC where the sales tax on a well insulated home is $ 300...Those pesky sales person in SC are always telling folks not to buy in GA because they will have to pay our tax....Of course they lose ALL credibility when we tell the customer different..It is really dumb for a sales person to tell a lie so easily refuted..

[J.Glaze]

After researching this, I found out that according to the state statutes, only sales to tribal members are exempt from sales tax. Sorry for the confusion.