Manufactured Housing Practice Test

As a retailer-consumer, what must a dealer declare and pay on each unit sold for residential use?

1. Equal to the tax rate for the area times 75% of the invoice

2. The dealer may not disclose the amount of use tax to the buyer

3. The buyer must sign a statement confirming residential use

4. All the above

The correct answer is: All the above

The correct response highlights the comprehensive obligations that a dealer has when selling a manufactured housing unit for residential use. Dealers are required to declare and pay a use tax on each unit sold, and this amount is typically assessed based on the effective tax rate applicable in the area where the sale occurs, multiplied by a specific portion of the invoice amount. This requirement ensures that the appropriate tax revenues are collected in line with local regulations. Additionally, while dealers may face restrictions on how they communicate tax amounts, proper practices generally necessitate that they make such disclosures to comply with transparency requirements when selling to consumers. Furthermore, obtaining a signed statement from the buyer confirming the intended residential use serves to protect both parties and ensures compliance with the relevant laws governing the sale and taxation of manufactured housing. The combination of these factors illustrates the multifaceted responsibilities of the dealer in the transaction, which justifies the inclusion of all aspects presented in the choices. It's essential for dealers to be aware of and adhere to these obligations to avoid potential legal complications and ensure proper tax collection for residential sales.