Manufactured Housing Practice Test

What is the effect of selling manufactured/mobile homes made before July 1, 1980?

1. They are taxed and licensed indefinitely

2. They are exempt from all taxes

3. They convert to property tax at resell

4. They must always have a permanent foundation

The correct answer is: They are exempt from all taxes

Selling manufactured or mobile homes made before July 1, 1980, may result in them being exempt from certain taxes due to their classification. Prior to this date, many manufactured homes were considered personal property rather than real property. Consequently, when these homes are sold, they often do not incur the same property taxes that more modern homes do, which typically have higher standards and regulations. This exemption can make them more financially attractive in transactions, as they do not have the same tax burden associated with real estate. This classification can vary by state, but many jurisdictions recognize this age cutoff, allowing older manufactured homes to be sold without incurring property tax responsibilities. The other choices do not accurately reflect the legal and taxation landscape for homes built before 1980. They typically do not have indefinite taxation (as can be seen with newer models) nor do they inherently require a permanent foundation, which is more of a requirement for homes classified as real estate. Lastly, the idea of converting to property tax upon resale applies usually to those that meet current standards.