Methods of Taxation Regarding
The Law allows for different methods of taxation:
Depreciation Method: Prior to January 1, 2000 manufactured or mobile homeowners are taxed using a method of depreciation and the full tax rate. This tax rate is not subject to H.B. 920 reduction factors. This method uses the sale price of the manufactured or mobile home, which is multiplied by either 95% for unfurnished, or 80% if the home is furnished. This amount is known as the depreciated value, which is multiplied by 40% to create the assessment value. The assessed value is multiplied by that full tax rate to calculate the yearly taxes. Every year an additional 5% depreciation is deducted from the 95% or 80% until it reaches 35% (see example). Manufactured or mobile homeowners whose homes were purchased prior to January 1, 2000 can stay on this method or elect to change to the new method, known as the Appraised Method.
Appraised Method: All manufactured or mobile homes that are purchased or otherwise transferred after January 1, 2000 or if the homeowner elects to convert to this method will be taxed like real property. Under the appraised method the County Auditor will appraise all homes for market value. These values will be adjusted every 3 years on the same schedule as real property. This method will use the appraised value by 35% to create the assessed value. The assessed value will be multiplied by the effective tax rate to calculate the gross tax. This method is also entitled to the 10% rollback and 2 1/2 % owner occupied credit as owners of real property are. To calculate the net taxes, the 10% rollback, and 2 1/2% owner occupied credit (if applicable) are deducted.
By clicking on the link below, you will find examples showing two different situations. These examples are for manufactured and mobile homes purchased in 1999 and 1993.