Manuf. Home property taxes, a bargain!

Buyers ask, “Since this is not real property (no land) why do I pay property taxes?” According to the state of California a manufactured home (built after June of 1976) is real property and subject to county property tax laws. Homes build prior to June of 1976 are still classified as a mobile home/trailer and are licensed and taxed as a vehicle by the DMV. A key benefit for buyers of a manufactured home is property taxes are based on the original sales price, not the re-sale price when purchasing an existing home. If someone is buying a 2020 home already set up in a park, the taxes are based on the original sales price of the home in 2020, plus a 1% annual increase. For example, in a recent transaction a 2004 model year home was purchased for $350,000.00 the annual property tax bill was $980/year based on the original sales price and the buyer can expect that to increase by $9.80 for next year. On a similar purchase of a $350,000 condo/single family home the taxes would be approx. $4,375 annually. The tax basis for traditional single-family homes, condos and townhouses is adjusted to the new sales price.