Travel Trailers/Parks Trailers
June 2006
The law relating to the assessment of travel trailers and park trailers in Minnesota was changed during 1989 to ensure their proper licensure or taxation. Additional modifications were made to the law by the 1994 legislature in an effort to clarify its interrelationship with other laws and improve upon its implementation. Several sections of the law that were addressed, namely the definitions and treatment of a travel trailer, park trailer, and mobile/manufactured home along with its auxiliary improvements, serve as the parameters that direct and control the assessor’s handling of these dwellings.
How are travel trailers and a park trailers treated today?
In the past, a travel trailer was eligible for licensure only if it was moved on the highway at least once each calendar year. Today, the law requires the assessor to assess each travel trailer that does not have its current year registration (license) plate conspicuously displayed on the assessment date, January 2nd, as either personal or real property. A park trailer, on the other hand, cannot be licensed. It must be assessed as either personal or real property like a mobile/manufactured home unless it was part of a licensed dealer’s inventory or the owner of the dwelling obtained a moving permit, (PS 2000), and moved it on the highway sometime during the assessment year. As a substitute for a personal or real property tax, Minnesota Statute 168.013, subdivision 1 requires a motor vehicle tax based upon the park trailer’s gross weight to be calculated and collected from the owner.
What is the statutory definition of a travel trailer?
A travel trailer means a trailer mounted on wheels, that: (1) is designed to provide temporary living quarters during recreation, camping, or travel; (2) does not require a special highway moving permit based on its size or weight when towed by a motor vehicle; and (3) complies with Sections 169.80, subdivision 2 and 169.81, subdivision 2. Minnesota Statute 169.80, subdivision 2 relates to outside width dimensions and provides that: “the total outside width of a vehicle exclusive of rear view mirrors or load securement devices which are not an integral part of the vehicle and not exceeding three inches on each side, or the load may not exceed 102 inches.” Minnesota Statute 169.81, subdivision 2 pertains to maximum length specifications and says that the maximum length eligible for licensing: “may not exceed 40 feet extreme overall dimensions.”
What is the statutory definition of a park trailer?
A park trailer means a trailer that: (1) exceeds eight and one-half feet in width in travel mode but is no larger than 400 square feet when collapsible components are fully extended or at a maximum horizontal width; and (2) is used as a temporary living quarters.
Who determines if the dwelling is a travel trailer, park trailer, or a mobile/manufactured home?
The assessor applies two specific tests based on the preceding definitions to determine if the dwelling is a travel trailer, park trailer, or a mobile/manufactured home. If the assessor determines that the dwelling is not a travel trailer, it may be eligible for assessment as a park trailer or a mobile/manufactured home. If the dwelling does not satisfy the tests for a travel trailer or park trailer, it must be a mobile/manufactured home. A mobile/manufactured home with dimensions larger than 8’ x 40’ is assessed unless it is part of a licensed mobile/manufactured home dealer’s inventory.
If the dwelling is determined to be a travel trailer and the current year’s registration (license) plate has been purchased but not displayed, can it still be assessed?
Yes, the travel trailer is subject to property taxation because the current year registration (license) plate was not conspicuously displayed. One’s failure to display current licensure on a trailer prior to the assessment date, January 2nd, will result in its assessment. Furthermore, it is not acceptable to send proof of licensure to the assessor because the law requires it to be displayed on the trailer.
If a travel trailer or park trailer is used as a year-around home, is it eligible for assessment?
Yes, the park trailer is subject to property taxation (whether or not it is used as temporary living quarters by its occupant) because it cannot be licensed. The travel trailer, however, is eligible for assessment (even if it is licensed) because this use has taken on some permanency and serves as the occupant’s primary place of residence. In short, year around use as a home would require the trailer to be assessed.
Are auxiliary improvements associated with a travel trailer, park trailer, or mobile/manufactured home subject to property taxation?
Auxiliary improvements such as storage sheds, decks, porches, living quarter additions are taxable pursuant to Minnesota Statutes 274.19 and 272.02. Specifically, any removable improvement constructed on real property that is rented as a site for a travel trailer, park trailer, or mobile/manufactured home is taxable only if its total estimated market value is over $500. The improvement is assessed as personal property in the name of the party renting the site if it is not owned by the owner of the site. The improvement is assessed as real property if it is owned by the site owner. (Note: In cases where the site is rented, the law requires the site owner to furnish the assessor with the name and address of the dwelling owner so that the property is properly assessed.)
If a travel trailer is licensed, can its improvements be assessed and taxed?
Yes, if the total estimated market value of the improvement is over $500, the law requires it to be assessed as either personal or real property. A personal or real property tax statement will be issued reflecting the value of improvements associated with the travel trailer.
How are a travel trailer or park trailer and its improvements assessed?
The value and property tax classification of a travel trailer or park trailer and its improvements are based on standard assessment practices as of the assessment date, January 2nd. Like a mobile/manufactured home, they are classified according to the law as either personal or real property. It is assessed as personal property if the dwelling owner rents the land or does not hold title to the land upon which the trailer is situated; it is permanently affixed by foundation or installed according to building codes/standards; and it is connected to public or private utilities and services. When the dwelling owner holds title to the land upon which the trailer is situated; it is permanently affixed by a foundation or installed according to building codes/standards; and it is connected to public or private utilities and services, the trailer is assessed as real property.
How are a travel trailer or park trailer and its improvements taxed as personal or real property?
The taxes levied on personal property are 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 with respect to its payable year. Other than differences in valuation attributable to land and improvements, the only dissimilarities are in the issuance of the tax statement and when the tax bill becomes due. Personal property is assessed and taxed in the current year. The personal property tax statement is mailed on or before July 15th with the first half tax payment due on August 31st and the second half tax payment due on November 15th. If the total personal property tax is $50.00 or less, then the full amount is due on August 31st. Real property is assessed in the current year and taxed in the next year. The real property tax bill is mailed annually on or before March 31st. 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. 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 is November 15th.