UNDERSTANDING TAXATION OF MANUFACTURED HOMES IN NEW MEXICO TIPS ON TAXES, TITLES, MOVING AND CLASSIFYING AS REAL PROPERTY LOS ALAMOS COUNTY ASSESSOR S OFFICE 1000 CENTRAL, STE 210 LOS ALAMOS, NM 87544 (505)-662-8030 E-MAIL: cas@lac.losalamos.nm.us This brochure was created BY THE Los Alamos County Assessor s Office to provide general information on Manufactured Homes. For more specific information please contact the County Assessor s Office. 4/27/2007 1
DEFINITION OF A MANUFACTURED HOME A Manufactured Home means a structure that is transportable in one or more sections that exceeds a width of eight feet and a length of forty feet when equipped for the road. In the measurements of a Manufactured Home the length includes the tow bar; if the tow bar is missing three feet must be added to the length. ANNUAL REPORTING REQUIREMENTS The owner of a Manufactured Home shall report annually to the County Assessor of the county in which the Manufactured Home is located no later than the last day of February. The report shall contain the following information (NMSA 1978 7-36-26, 3.6.5.33): Owner s name and mailing address, physical address; Name of manufacturer, model year and serial number; Size; when measuring the manufactured home the tow bar is to be included but if the tow bar has been removed, add three feet to the exterior length of the unit; Number, if any assigned for tax purposes (account number, etc.); Date of purchase, price paid Whether the unit was new or used when purchased; Whether the unit is owner occupied or rented; If rented, the amount of the monthly rent Failure to make a report under this section can result in a fine up to $1,000. TO BUY OR SELL A MANUFACTURED HOME Be sure that all taxes due or to became due are paid. New Mexico law requires that January 1 determines the for Manufactured Homes that are going to be sold, moved taxable status of all or converted to real property that all taxes are paid in property in New Mexico. advance. First you will require a notification of no tax liability form issued by the County Assessor and the Cashier Department at the Kan Du Center. When a title, signed by the seller is submitted to the Motor Vehicle Division of the Taxation and Revenue Department for the recording of a new owners name, a Notification of No Tax Liability form must accompany it from the County Cashier Department (County Treasurer). TO MOVE YOUR MANUFACTUERED HOME First you must notify the County Assessor and the Cashier Department where the home is presently located, The County Assessor / Cashier Department will issue a Manufactured Home Move Certificate and a Notification of No Tax Liability forms. 4/27/2007 2
The owner of the unit must then obtain an excessive size and weight permit from the Department of Motor Transportation. When you arrive at your new location, you must inform the County Assessor in the format listed above in the annual reporting requirements. Reports to the County Assessor must be made by the last day in February. CONVERTING YOUR MANUFACTURED HOME TO REAL PROPERTY The process of converting a manufactured home to real property involves three different departments, the Manufactured Housing Division of the New Mexico Regulation and Licensing Department, the County Assessor and the Motor Vehicle Division of the New Mexico Taxation and Revenue Department. The most important and first step in this process is to have the home certified as having a permanent foundation by either a certified New Mexico Engineer or an inspector from the Manufactured Housing Division of the Regulation and Licensing Department. A request form for a permanent foundation permit must be obtained from the New Mexico Manufactured Housing Division. A foundation design plan that meets the required standards of the division, see web site for requirements, need to be submitted along with the county s land use documents prior to receiving a permit. A permit that will have the inspector s name for this region and phone number will be issued. A pre-final (before concrete is poured) and a final physical inspection will be required. If obtaining a loan, do not wait until the end of the mortgage process. The permanent foundation inspection will require some time to complete due the shortage in inspectors. 14.12.2.56 (A) gives this agency the statutory and regulatory responsibility to regulate the installation, construction standards to include foundation (permanent) systems of manufactured homes. They will issue a permit certifying that the manufactured home is considered to have a permanent foundation. The Manufactured Housing Division is located at the Toney Anaya Building at 2550 Cerrillos Road, Santa Fe. Their phone number is (505)-476-4770 and zip code number is 87505. Permits, forms, procedures and any other items concerning Manufactured Home are online at www.rld.state.nm.us/mhd. To insure compliance, contact the Manufactured Housing Division before beginning to construct a permanent foundation system. If foundation is not considered permanent, retrofit systems are available at manufactured homes supplies stores and the inspector or engineer can provide descriptions of the types of kits that are available. 4/27/2007 3
The County Assessor will classify the manufactured home as real property when: A request to change valuation status has been requested by the owner, Tongue and axles have been removed, The owner of the manufactured home owns the land, on which the unit is located, Title to the manufactured home has been deactivated in accordance with 18NMAC 19.3.1, by the department of Motor Vehicle, Provide a copy of the permit issued by the Manufactured Housing Division with the signature of the state inspector or certified engineer, Provide a copy of the on-site appraisal performed by an independent fee appraiser to affirm the first two conditions, All prior and current taxes have been paid. The Motor Vehicle Division will deactivate a title when: The title is free and clear of all encumbrances, The County Assessor certifies to the Division that, once the title is deactivated, the manufactured home will be taxed as real property, The owner has signed the title application. If obtaining a loan, take copies of the manufactured home permit certifying a permanent foundation, the County Assessors affirmation of real property classification and the deactivated title to your lending institution or title company. If obtaining a loan, take copies of the Manufactured Home permit certifying a permanent foundation, the County Assessor s affirmation of real property classification and the deactivated title to your lending institution or Title Company. Tip: Record any statement of certification as real property with the County Clerks Office. REACTIVATION OF A TITLE FOR A MANUFACTURED HOME A deactivated title can be reactivated upon request from the owner. The Motor Vehicle Division shall reactivate a title after receipt of documentation, that all liens, taxes or mortgages against the housing structure and the land upon which it is affixed have been released and the unit has been reclassified as a manufactured home. VALUATION OF MANUFACTURED HOMES The valuation method used for determining the value of manufactured homes for property tax purposes shall be the cost method and shall generally provide for: 4/27/2007 4
The determination of initial cost of a manufactured home based upon classification of manufactured homes and sales prices for the various classifications, Deduction from the initial cost for allowable depreciation, which allowances for depreciation shall be developed by the division; and Deduction from the initial cost other justifiable factors, including but not limited to functional and economic obsolescence. Valuation of manufactured homes classified, as real property shall be valued as real property in accordance within the provision of NMSA 7-36-15 of the property tax code. The valuation method under this provision will be its market value as determined by application of sales comparable property, income or cost methods or any combination of all of these three methods. 4/27/2007 5
EXAMPLES OF FORMS AND OTHER INFORMATION 4/27/2007 6