Have you been wondering how much tax to charge a Buyer of a mobile home that is located on leased land in the state of Florida?
We seem to run into this issue with Sellers all the time!
Some Sellers want to “help out the Buyer” and not charge them the correct amount of tax.
Some do not collect tax at all.
Some charge them the basic state sales tax amount.
Before we get started here, I will give you the basic disclaimer that I am not an attorney, I am not a tax professional, I don’t work for the Department of Motor Vehicles and I do not work for the Florida Department of Revenue.
Okay, so now that we have that all the way, let’s get started!
I am here to tell you, though, that as a licensed, bonded, and insured Mobile Home Broker in the state of Florida, I do applaud everybody’s attempts in the previous example of how they’re trying to collect tax. But to my understanding, they are doing it all wrong!
You see, when selling or buying a mobile home on leased land, one needs to realize exactly what they are and what they are not buying. In Florida, a mobile home that is sold on leased land is viewed and taxed as personal property, just the same way as an automobile is taxed. Now, I know this may sound silly for those who are not familiar with these types of transactions, but a mobile home on leased land carries a title with it, and not a deed, just like a vehicle.
When looking to buy or sell a mobile home on leased land then property taxes do not apply since the land that the home is sitting on is not being sold in the purchase. This is because in that situation, the land is being leased and paid every month through a payment called lot rent to the mobile home park.
When purchasing the home on leased land in Sarasota, one needs to pay attention to two things.
First, the actual sales tax and the value of the property in the county.
Second, the surtax that is paid to the county on top of the actual sales tax.
At the time of this video, the sales tax on a mobile home leased land in Sarasota County is 6% of the sales price of the home. So let’s give an example. Let’s say you buy a mobile home on leased land for $10,000. Then 6% or $600 will be owed for sales tax on the purchase.
The county surtax is where a lot of people get confused. That is going to be based on where the home is located at in the state of Florida and what county surtax is associated for that. This is going to be an amount of tax over and above the actual sales tax amount.
So let’s give another example.
For Sarasota County, as of this time of this video, the county surtax is 1% of the purchase price that goes up to $5,000. I know it sounds confusing, so let me give you another example to best illustrate this to the best of my knowledge. Again, let’s say you are buying a mobile home located on leased land for $10,000. As we discussed, $600 will be owed for the sales tax. The county sur tax is going to be 1%, but that maxes out at $5,000. So to figure the surtax out, take 1% of $5,000, which is 50 bucks. So in the above example, on that $10,000 mobile home, the total amount of both sales tax and county surtax owed at closing is $650.
Now I am not a math major, okay. trust me but I do hope that this helps you in determining how much you need to collect or pay when purchasing or selling a mobile home on leased land in Sarasota, Florida.
This is Mark Kaiser with The Mobile Home Dealer, and we help mobile home Buyers and Sellers get to a better place in life.