Manufactured Housing Practice Test

What is the tax status of a unit sold prior to July 1, 1980?

1. It is subject to annual property tax if on real property

2. It is subject to annual tax and license if not converted to property tax

3. It is not subject to any tax

4. It is subject to both annual tax and license

The correct answer is: It is subject to annual tax and license if not converted to property tax

The tax status of a unit sold prior to July 1, 1980, is that it is subject to annual tax and license if it has not been converted to property tax. This classification is based on the legal framework established before that specific date, distinguishing manufactured housing units from other types of property based on whether they meet specific regulatory criteria. Prior to July 1980, manufactured homes were often categorized differently from traditional real property, which meant that they were directly subject to a different set of taxation rules. If a manufactured home had not been converted to real property status—that is, it had not been affixed to a permanent foundation and did not meet the criteria for real property—then it would not be eligible for the same tax treatment as other forms of real estate. Instead, it remained subject to the taxation structure that included annual tax and license fees, reflecting its status as personal property. Understanding this distinction is crucial for determining the tax implications of manufactured housing created or sold before the regulatory changes that occurred after July 1, 1980.