MANUFACTURED HOUSING GENERAL ISSUES, CLASSIFICATION & VALUATION VAAO 58 TH EDUCATION SEMINAR JOINT SESSION JULY 19, 2013 9:00 AM 12:00 NOON
Panel Members Hon. Ellen Murphy Commissioner of the Revenue Frederick County VA Hon. Margaret Torrence Commissioner of the Revenue Franklin County VA Don Thomas Vice President, Field Services Wingate Appraisal Service Nicholas G. Morris Property Tax Manager VA Department of Taxation
Attorney General Opinion Opinion Number: 00-020 Tax Type: Property Tax Brief Description: Special Provision for Mobile Homes Topics: Property Subject to Tax Date Issued: 12/28/2001 The 1994 Session of the General Assembly amended the statutory procedure for taxing manufactured homes. 1 The legislation changed all references to "mobile home(s)" in 58.1-3520 and 58.1-3521 of the Code of Virginiato "manufactured home(s)," 2 and added 58.1-3522 as follows: Manufactured homes installed according to the Uniform Statewide Building Code shall be assessed at the same time as the assessment of the real property on which the manufactured home is installed. Such homes shall be assessed in the same manner and using the same methods applied to improvements and buildings which are assessed in accordance with Article 7 ( 58.1-3280 et seq.) of Chapter 32 of [Title 58.1]. [3]
Attorney General Opinion Classified and taxed as real or personal property? The three tests applied by the Supreme Court of Virginia: (1) annexation of the property to the realty, (2) adaptation to the use or purpose to which that part of the realty with which the property is connected is appropriated, (3) the intention of the parties. A manufactured home that has become affixed to real estate is classified and taxed as real estate and must be treated as such for all purposes, including administrative and judicial review.
Attorney General Opinion Manufactured homes not affixed to real estate taxed as a separate class of tangible personal property, assessed in the same manner, using the same methods, and taxed at the same rate as real estate, still treated as tangible personal property for all other purposes
Definition 36-85.3. Definitions "Manufactured home" means a structure subject to federal regulation, which is transportable in one or more sections; is eight body feet or more in width and forty body feet or more in length in the traveling mode, or is 320 or more square feet when erected on site; is built on a permanent chassis; is designed to be used as a singlefamily dwelling, with or without a permanent foundation, when connected to the required utilities; and includes the plumbing, heating, air-conditioning, and electrical systems contained in the structure.
Statute 58.1-3522. Assessment method for manufactured homes Manufactured homes installed according to the Uniform Statewide Building Code shall be assessed at the same time as the assessment of the real property on which the manufactured home is installed. Such homes shall be assessed in the same manner and using the same methods applied to improvements and buildings which are assessed in accordance with Article 7 ( 58.1-3280et seq.) of Chapter 32 of this title.
General Issues RURAL SETTING FINDING THEM REMOTE UNREGISTERED ON DMV ABANDONED SOMETIMES NO PHYSICAL ADDRESS PICTOMETRY HELPFUL OWNER OF LAND VS OWNER OF MOBILE HOME
General Issues MOBILE HOME PARK ISSUES: PLATES WITH YEAR, MAKE AND MODEL MISSING ABANDONED INACCURATE OWNERSHIP RECORDS RELATIVE SQUATTER MISSPELLED NAMES TENANT NOT OWNER TENANT LIENS MAY BE HELPFUL IF SHARED
General Issues MEASUREMENTS: DISCREPANCY IN LENGTH AND WIDTH DMV VS MEASUREMENTS INACCURATE REPORTING/MEASURING
Classification Issues PERMANENT (REALTY) VS PERSONAL PROPERTY APPLICATION OF THREE PART FIXTURES TEST CAMPERS OR VACATION HOMES LOCALITY ZONING ORDINANCES WHAT CONSTITUTES INSTALLED TONGUE AND WHEELS REMOVED PERMANENT INSTALLATION WATER AND SEWER MAY NOT BE A DECISION MAKER ANY WILL HAVE W&S SO THAT ALONE NOT DETERMINING FACTOR TYPE OF HOOKUP MAY BE ONE FACTOR TYPE OF FOUNDATION
Classification Issues TYPE OF ADDITION, PORCH, OR ROOM HOW ATTACHED SIGNIFICANCE TYPE OF GROUND ATTACHMENT BURIED FOOTERS STILTS CINDER BLOCKS STACKED VS CEMENTED/GROUTED ENCLOSED (SKIRTING, SEE 36-99.8) OWNERSHIP OF LAND VS MOBILE HOME DON T OWN LAND NOT REALTY INSURANCE REQUIREMENTS R.E. IS BETTER INSURANCE RATE THEREFORE TXPY WANTS R.E. NOT DECIDING FACTOR FOR ASSESSOR NEED MORE
Classification Issues DMV RECORD ISSUES WHEN OWNERSHIP IS SHOWN WHEN PURGED DMV LESS THAN INTERESTED IN HANDLING THEM MONTHLY REPORTS ARE HELPFUL IN LOCATING MOVEABLE MOBILE HOMES JURISDICTIONAL ISSUES OWNER ADDRESS MAY NOT BE PHYSICAL LOCATION
Valuation Issues NADA MANUFACTURED HOMES VIRGINIA MANUFACTURED HOUSING APPRAISAL GUIDE WINGATE APPRAISAL SERVICE ADDITIONS WHEN TO ADD A PORCH OR BUILDING ENCLOSURES WHEN AN ADDED ROOM IS REMOVABLE MEASURING FOR POP- OUTS ALLOWING FOR DEPRECIABLE EVENTS POOR CARE AGING WEATHERING STORM DAMAGE EXCELLENT CARE
Production Trend 90 South Atlantic Region Manufactured Housing Production (Delaware, District of Columbia, Florida, Georgia,Maryland North Carolina, South Carolina, Virginia, West Virginia) 80 70 Production Percentage 60 50 40 30 Single Section Multi Section 20 10 0
$80,000 Manufactured Home National Average Retail Sale Price thru 2011 $70,000 $60,000 $50,000 Retail Price $40,000 (Single Section) (Multi-Section) $30,000 $20,000 $10,000 $0
Resale Market Characteristics If the Real Estate Market is Considered Inefficient (Compared to Stocks and other Competing Investments) Then the Manufactured Home Market is inefficient and then some. Buyers often have credit irregularities which can bring about cash sales, creative (predatory) financing, owner financing and barter. High rate of loan default. Seller motivation can vary greatly. Sometimes the need to move the unit is secondary to acquiring market price. Descriptions of manufactured homes vary greatly in sales adds. Inconsistent product information and description is common. Variability in physical wear.
Quality Size Condition Necessity of Site Inspection
Virginia Wind Zone II Gloucester, Isle of Wight, James City, Lancaster, Mathews, Middlesex, Northumberland, Southampton, Surry, York. Cities of Chesapeake, Hampton, Newport News, Norfolk, Suffolk, Virginia Beach