MANUFACTURED HOMES: Valuation and Taxes for Tax Year 2017
Ohio Revised Code Section 4503.06 establishes a tax on manufactured homes (mobile homes or house trailers) that is computed and assessed by the county auditor where the manufactured home is located and is paid to and collected by the treasurer of the same county. The manufactured home tax is applied when the home is used as a residence. In contrast, manufactured homes used in a business other than for lease or rental as a residence are not subject to the manufactured home tax.
Manufactured homes that are used as a residence and that acquired situs in Ohio prior to January 1, 2000 are subject to a manufactured home tax based on the depreciated cost of the home. Alternatively, the owner of a home meeting these conditions may elect to have the same tax treatment as homes first sitused in Ohio or transferred on or after January 1, 2000, as explained below.
The primary features of the “depreciation schedule”-based manufactured home tax are as follows:
- The assessed value is equal to 40 percent of the depreciated value of the greater of either: (1) the manufactured home’s cost to the owner; or (2) the market value at the time of purchase. Whether the home was purchased with or without furnishings determines whether one of two depreciation schedules is used.
- The tax rate is equal to the gross real property tax rate for the prior year for the subdivision where the manufactured home is located and no rollbacks are applied to the tax calculation. The revenue from this tax is distributed among the taxing subdivisions of the county in which the taxes are collected and paid in the same ratio as real estate and public utility taxes are distributed for the benefit of the taxing subdivision.
- Manufactured homes that acquired situs in Ohio or were transferred on or after January 1, 2000 are subject to a manufactured home tax that is like the real property tax. Alternatively, the owner may convert such a home to real property status and therefore subject the home to the real property tax. To convert the home and have it taxed as real property requires the home to be affixed to real property owned by the homeowner, to be on a permanent foundation, and the certification of title to be inactivated.
The primary features of the manufactured home tax that is like real property tax are as follows:
- The assessed value is 35 percent of the true value of the home as determined by the county auditor.
- The tax rate is equal to the effective rate for the prior year for the subdivision where the manufactured home is located, the tax is assessed using the effective tax rate, the 10 percent tax credit applies, and the 2.5 percent owner-occupied credit may apply if the home is the primary residence of the owner.
For more information on property taxation of manufactured homes, refer to the Division of Tax Equalization Bulletin 11 available at the following link: http://www.tax.ohio.gov/portals/0/government/dte_bulletin11rev.pdf.
To clarify, table MH-1 reflects manufactured homes that are subject to the depreciated cost-based manufactured home tax as well as manufactured homes that are subject to the manufactured home tax that is like the real property tax. Manufactured homes that are taxed as real property (as well as manufactured homes not used for residential purposes) are not included in this table.
The table shows the amount of tax levied on manufactured homes in each county, by type of manufactured home tax, along with the number of manufactured homes, the taxable value and prior years' delinquencies and penalties. The data presented in the table were compiled from a survey of county auditors conducted by the Ohio Department of Taxation. Note: five counties did not submit calendar year 2017 data for this report (Clinton, Erie, Harrison, Jefferson and Morgan); previous year’s information was used in place.
Based on survey results, 193,947 manufactured homes were valued at approximately $673.4 million dollars in calendar year 2017. It is estimated that a total of approximately $29.8 million of taxes were levied with an additional $55.1 million in prior years' delinquencies reported, for a total amount due of $84.9 million.
The number of manufactured homes by county ranged from 461 in Fayette County to 5,583 in Clermont County with an average of 2,204 per county. Taxable value by county ranged from $954,350 in Miami County to approximately $30.0 million in Portage County. Total 2017 taxes levied (including prior years' delinquencies) ranged from $53,693 in Auglaize County to $3.4 million in Athens County.