Mobile/Manufactured Homes
March 2006
Thirty five years ago, Minnesota required all mobile/manufactured homes to be licensed as a motor vehicle in lieu of paying a property tax. The Motor Vehicle Division of the Department of Highways carried out the registration of these dwellings while the unlicensed homes were assessed by the assessor. This handling resulted in some mobile/manufactured homes escaping licensure or taxation. As a result, the laws relating to their treatment were changed in 1972, requiring them to be assessed and taxed at the county level by the assessor. Additionally, certain functions were also changed, namely the elimination of registration and revisions relating to the movement of mobile/manufactured homes.
How is a mobile/manufactured home assessed and taxed today?
The value and property tax classification of a mobile/manufactured home are established with reference to the assessment date, January 2nd of each year, and founded on standard assessment practices. However, it is classified and taxed as either personal or real property according to specific conditions defined in law. Theses conditions are based on whether or not it is located on land that is owned by the home owner or on land owned by someone other than the home owner. If the mobile/manufactured home owner holds title to the land upon which it is situated; the home is permanently affixed by a foundation or installed according to building codes/standards; and the home is connected to public or private utilities and services, then the appropriate classification is real property. The personal property classification applies when the home owner leases the land or does not hold title to the land on which it is sited; the home is permanently affixed by a foundation or installed according to building codes/standards; and the home is connected to public or private utilities and services.
Is the taxation of a mobile/manufactured home classified as personal property the same as it is for real property?
For the most part, the taxes levied on a mobile/manufactured home classified as personal property are somewhat similar to real property. The same property tax classification rates, overall tax capacity extension rates, market value tax rates, and applicable tax credits apply to both property types consistent with the respective payable year. Other than differences in valuation attributable to land and perhaps the presence of auxiliary improvements, the only dissimilarities are in the issuance of the tax statement and when the tax bill becomes due. A mobile/manufactured home classified as personal property is assessed and taxed in the current year, whereas a mobile/manufactured home classified as real property is assessed in the current year and taxed in the next year. The title holder of a mobile/manufacture home, as of January 2nd in the year the taxes are due, is sent a personal property tax statement and the fee owner of real estate on January 2nd is sent a real property tax statement.
When are the tax bills issued and the tax payments due on a mobile/manufactured home?
The tax bill for a mobile/manufactured home classified as real property is mailed on or before March 31st of each year. The mobile/manufactured home personal property tax statements are mailed on or before July 15th. The deadline for making the first half tax payment on real property is May 15th, except for real property classified as ma and pa resorts and some seasonal commercial properties that have a due date on May 31st. A mobile/manufactured home classified as personal property has a first half tax payment date of August 31st, but if the entire tax amount on the home is $50.00 or less, then the total tax is due on this date. The second half tax payment for non-agricultural real property is due on October 15th. The deadline for paying the remaining one-half tax for agricultural real property and mobile/manufactured homes classified as personal property is November 15th.
Since licensing of mobile/manufactured homes has been eliminated, does the state continue to oversee their ownership in some manner?
Yes, all mobile/manufactured homes are required to be titled through the Driver and Vehicle Services Division of the Minnesota Department of Public Safety. The registrar of motor vehicles in each county can issue a certificate of title in the same manner as a motor vehicle. This document is prima facie proof of ownership that serves as a bill of sale in a transfer of ownership. It is a record detailing the vehicle identification number, year of manufacture, make, model, title number, date issued, name and address of owner, lien information, and the name and address of any secured parties. Much like a real estate deed or other legal documents, this certificate should be kept in a safe place and updated whenever there is an assignment of ownership.
If a mobile/manufactured home is sold, what is the seller or buyer required to do?
When selling a mobile/manufactured home to another person, the buyer and seller are responsible to file information with the Department of Public Safety by transferring the certificate of title at the county registrar's office of motor vehicles. Before the registrar transfers ownership, the following requirements must be satisfied: (1) all past and current taxes due are paid, (2) a certified statement from the assessor and auditor-treasurer of the county where the home is located acknowledging that it has been assessed and that taxes have been paid must be furnished, and (3) a current certificate of title with any required lien releases must be submitted. Additionally, the seller should inform the assessor about the change in ownership. Once a new certificate of title is issued, the buyer should also furnish a copy to the assessor to ensure that the county assessment records are updated.
If the mobile/manufactured home is to be moved by its owner or a professional mover, what is required before a permit can be issued?
Since the movement of a mobile/manufactured home is controlled by the Commissioner of Transportation and local authorities, a permit will not be issued until the person seeking it 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. Furthermore, the owner should inform the assessor about the movement of the home to ensure that the county assessment records are updated. If a person fails to obtain the proper document to move a mobile/manufactured home, the law does allow for a fine to be imposed.