The law allows for two 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 assessed value. The assessed value is multiplied by the 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%. Manufactured or mobile homeowners whose home has been 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 elect to convert to this method will be taxed like real property. Under the appraised method, all homes will be appraised for market value by the County Auditor. Similar to how real property is valued. These values will be adjusted every three (3) years on the same schedule as real property. This method will use the appraised value multiplied times 35% assessment percentage to create the assessed value. The assessed values will be multiplied by the effective tax rate to calculate the gross tax. This method is also entitled to the 10% rollback and 2.5% owner-occupied credit, if applicable.
- Converting Your Manufactured or Mobile Home to the Appraised Method: If you have determined that it would be beneficial to convert to the new appraised method, please contact our office prior to December 1st of any year. To convert to the new appraised method, all taxes must be paid and a form is required to be filed with our office. This form is available at our office. Please note that you can only change once.
- Converting your Home to Real Estate: The new law allows for homeowners who own the land their home is sitting on to convert the home to real estate. To do so the home must be affixed on a permanent foundation, all mobile home taxes must be paid and the title surrendered to the Auditor's Office.