Mortgages & Creative Financing

Mobile Home Property Tax Yearly Reassessments

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
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saving money mobile homes

In most areas of the country annual property taxes are due for nearly all residential property, vacant land, and most private businesses alike, excluding nonprofit organizations, government buildings and other specific organizations. State and local governments have done a respectable job in most areas to make available exemptions to reduce the cost to many in the general public; exemptions includes; homestead, widow, military, seniors, persons with disabilities, and many more that vary state by state.  

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What if you feel you’re still paying too much in yearly property taxes?

Mobile homes that are attached to their own land are taxed in most areas as Real Property.  This means that your mobile home is taxed similar to the guy down the street with the million dollar mansion.  Most states do not give mobile home owners a method of choice for how they would like to be taxed.  Most of the time we are a good citizens, receive our yearly tax bills, and mail in our checks.

Actual mobile homes themselves (whether on land or inside mobile home parks) depreciate in value; their ‘Life Cycle’ is related more to that of an automobile than a traditional site build house.  Yet you won’t hear me complaining that the retail value decreases laterally with county assessed value.  In most cases while assessed values decrease, the need for affordable housing along with my monthly rents increase.  However if there is even a chance for loophole that can reduce our yearly manufactured home property tax bill I’m all for it.

Some states including Ohio allow the owners of mobile homes attached to land purchased prior to 2000, to decide if their homes should be taxed on a ‘Depreciation Method’ or ‘Appraisal Method’ (the method used by most states today).  Other states make other concessions for this natural depreciation factor.  How can those of us that are left with no option fight back to reduce our costs?

It is for this reason that while in Florida and now, living in Texas, I will persistently file claims with my local county’s property tax assessor’s office.  My claim you ask? I lightly demand that my mobile home taxable value be reassessed to a lesser value because of its inferior quality and construction grade compared to traditional site built property.  From county to county forms will vary.  In most cases an appraiser is never even sent out to the property.

I have had personal successes that varied county by county, year to year, and county employee to county employee.  I find that every time I present my argument it rarely falls on deaf ears.  I do not always get reductions on every one of my properties but the saving has been significant over the years.

“A penny saved is a penny earned.” – Benjamin Franklin

– John Fedro

Photo: Reza

Investing since 2002, John started in real estate accidentally with a 4-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and some of the stories of other successful mobile home investors he helps on his blog and YouTube channeland has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest here and on other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

    John
    Replied over 2 years ago
    Hi, what’s your tax rate?
    David
    Replied about 2 years ago
    Florida allows you to pay an annual license fee on your mobile home rather than property tax. Texas on the other hand taxes you mobile home as real property. Having read all I can on Texas laws I am still looking for a loophole that will allow me to pay an annual license fee to the state rather than an exhorbitant assessment fee to thew county tax assessor.which not allow for depreciation Do you know of a way to accomplish this. Can I petition the state to pay a license fee and remove my mobile home from the tax rolls
    Kyle Miller from Alhambra, California
    Replied almost 2 years ago
    David, Did you ever get anywhere with the property tax issue in Texas getting it taken off of the tax rolls?