MANUFACTURED HOMES

Senate Bill 142 has changed many aspects of Ohioís Manufactured and Mobile Home Laws. Some changes became effective March 30, 1999, while others will become effective on January 1, 2000.


METHODS OF TAXATION

The law allows for different methods of taxation.

Depreciation Method
:
Owners who purchased Manufactured/Mobile Homes prior to January 1, 2000, are taxed using a method of depreciation and the full tax rate. This tax rate is not subject to H.B. 920 reduction factors. This method uses the sale price of the Manufactured or Mobile Home which is multiplied by either 95% for unfurnished or 80% if the home is furnished. This amount is known as the depreciated value which is multiplied by 40% to create the assessed value. The assessed value is multiplied by the full tax rate to calculate the yearly taxes. Every year an additional 5% depreciation is deducted from the 95% or 80% until it reaches a minimum of 50% for unfurnished or 35% for furnished manufactured or mobile homes (see example). Manufactured or Mobile Home Owners whose home has been purchased prior to January 1, 2000 can stay on this method or elect to change to the new method known as the Appraised Method.

Appraised Method
: All Manufactured or Mobile Homes that are purchased or otherwise transferred after January 1, 2000 or elect to convert to this method will be taxed like Real Property. Under the Appraised Method all homes will be appraised for Market Value by the County Auditor, similar to the way Real Property is valued. These values will be adjusted every 3 years on the same schedule as Real Property. This method will use the appraised value multiplied times 35% assessment factor to create the assessed value. The assessed value will be multiplied by the effective tax rate to calculate the gross tax. This method is also entitled to the 10% rollback and 2Ĺ% owner occupied credit, same as Real Property owners. To calculate the net taxes, the 10% Rollback and 2 1/2% owner occupied credit (if applicable) are deducted to create the net taxes for the year (see example).

To further illustrate the difference in these two methods, please refer to the following examples for Manufactured or Mobile Homes purchased in 1999 and 1993:

Taxes Using the Depreciation Method

 

1999

1993

Purchased Price

$56,421

$35,150

Depr. % x

80%

50%

Depreciated Value

$45,140

$17,575

Assessment % x

40%

40%

Assessed Value

$18,056

$7,030

*Full Tax Rate x

79.75

79.75

2000 Full Year Tax

$1,439.97

$560.94

Taxes Using Appraised Method

 

1999

1993

Appraised Value

$56,421

$39,300

Assessment % x

35%

35%

Appraised Value

$19,750

$13,760

*Effective Tax Rate

48.363115

48.363115

Subtotal

$955.17

$665.48

10% Rollback

$95.52

$66.55

2 Ĺ % Credit

$23.88

$16.64

2000 Full Year Tax

$835.78

$582.29

*Current Tax Rate

   

The above example shows two different situations in the case of a home acquired in 1999. It would be beneficial to convert to the Appraised Taxation Method for this example. In the second example where a home was acquired in 1993, it would be beneficial to continue on the Depreciation Method. Our office would be pleased to provide you with a tax analysis based upon your situation.

Converting Your Manufactured or Mobile Home to the Appraised Method:

If you have determined that it would be beneficial to convert to the new Appraised Method, please contact our office prior to December 1st of any year. To convert to the new Appraised Method, all taxes must be paid and a DTE Form 55 is required to be filed with our office. This form is available at our office. Please note that you can only change methods once.

Converting Your Home to Real Estate:

The new law allows for homeowners who own the land where their home is located to convert the home to Real Estate. To do so the home must be affixed on a permanent foundation, all taxes must be paid and the title surrendered to the Auditorís Office.

OTHER CHANGES


Relocation Notice:
Effective March 30, 1999 any Manufactured or Mobile Home that is moved on a public road within Ohio must have a Relocation Notice attached to the rear of the home while being moved. You can obtain a Relocation Permit from the Williams County Auditorís Office upon showing proof that all taxes have been paid. Failure to obtain a permit is a minor misdemeanor with a fine of $100.00 to the owner and the person moving the home.

Payment Plans: Delinquent payment plans are available to delinquent taxpayers. You may inquire about these options with the Williams County Treasurer at 419-636-1850.

Board of Revision: Homeowners whose taxes are based on the Appraised Value can appeal the value of the home to the Board of Revision of any year between January 1st Ė March 31st. The applications are available in our office.

Delinquent Manufactured or Mobile Home Taxes: On or before September 1st of every year a lien list of all delinquent Manufactured or Mobile Homes will be filed in the County Recorderís Office. This list will be advertised in a local newspaper.

Interest on Delinquent Taxes: Delinquent Manufactured and Mobile Home taxes are now subject to interest.

Penalty for Failing to Register: All Manufactured or Mobile Home Owners must register their home with the County Auditor within 30 days after acquiring situs in Williams County. Failure to do so will subject the owner to a $100.00 penalty.

Transfer of Ownership: After January 1, 2000 any used Manufactured or Mobile Home that is sold must be conveyed through the Williams County Auditorís Office. The sale will be subject to the Conveyance Tax of $4.00 per $1,000 of value. After the conveyance is handled in the Auditorís Office, the title may be transferred by the Clerk of Courts exempt from sales tax.

TAX RELIEF

Rollbacks: These property tax reductions that were only available to real property owners are now available to manufactured and mobile home owners. There is a 10% rollback for everyone and a 2 Ĺ% credit for all owner-occupied manufactured and mobile home owners who are taxed under the Appraised Method.

House Bill 920: Passed into law in 1976, it provides a credit against all voted tax millage. As property values increase due to reappraisals (inflation), additional credits, known as reduction factors, are applied to voted tax levies so that property owners are not paying more than the amount of taxes the levy was originally voted to collect. The only increase in revenue that taxing districts receive from voted levies are from the added value of new construction.

Homestead Exemption: Manufactured homeowners, 65 years old or permanently disabled, are eligible. This program reduces the taxable value of the property, thereby reducing the taxes owed. Click here for an Application, or contact our office. The application may be filed between the first Monday in January and the first Monday in June each year in our office.

DEFINITIONS


"Acquired situs"
, with respect to a manufactured home or a mobile home, means to become located in Ohio pursuant to the issuance of a certificate of title to the home and the placement of the home on real property. This does not include the placement of a manufactured home or a mobile home in the inventory of a new motor vehicle dealer or the inventory of a manufacturer, remanufacturer, or distributor of manufactured or mobile homes.

"Manufactured home" means a building unit or assembly of closed construction fabricated in an off-site facility, that conforms with the federal construction and safety standards established by the Secretary of Housing and Urban Development pursuant to the "Manufactured Housing Construction and Safety Standards Act of 1974", and that has a label or tag permanently affixed to it certifying compliance with all applicable federal construction and safety standards.

"Mobile home" is defined as a building unit or assembly of closed construction that is fabricated in an off-site facility, is more than 35 body feet in length, or, when erected on site, is 320 or more square feet. It must be built on a permanent chassis and transportable in one or more sections, and does not qualify under the actís definition of a manufactured home or industrialized unit.

Units categorized as mobile homes under the act are primarily those units built before 1976, when the HUD standards became effective.

"Permanent foundation" means permanent masonry, concrete, or locally approved footing or foundation, to which a manufactured or mobile home may be affixed.

TAX CALCULATOR

Sale Price or Appraised Value

x

.35

Assessed Value

=

Effective Tax Rate

x

Subtotal

=

10% Rollback

-

2 Ĺ% Credit

-

Net Taxes

=

12

Monthly

=

If you have any questions, please call the Auditorís Office at 419-636-5639 ext. 5139.