Sales tax on a mobile home in Florida is determined by the county in which the mobile home is located. The rate of sales tax varies from county to county but is generally between 6 and 7 percent. In some cases, the sales tax may be lower if the mobile home is being purchased for use as a primary residence.
For sure, one of the many obvious reasons why you are buying a mobile home in the Sarasota Florida area is due to the fact that mobile homes are not taxed as real estate properties. Not only this, the cost of living is basically lower than in most bigger states. But do you know that buying a mobile home, as a buyer, you also need to pay the sales tax? Keep reading and learn from the experts before you start looking for a mobile home to buy.
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 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 owner(s).
When purchasing a 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 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. Than 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 in the state of Florida and what county surtax is associated with that. This is going to be an amount of tax over and above the actual sales tax amount.
So let’s give another example.
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For Sarasota County, as of this time of this video, the county surtax is 1% of the purchase price which 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 surtax 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.
When looking to buy a mobile home on leased land within the greater Sarasota Florida area it is important to know what are the total taxes to be paid and who is going to pay so that the closing of the sale can go without any issues. The tax should be agreed upon between the buyer and the seller before making any commitments. Although sales tax can’t break your bank, sometimes, small things like this can break a deal if not properly discussed prior to the closing of the sale.
I hope this helps everyone out there better understand why mobile homes on leased land are such an affordable housing option!
In the state of Florida, sales tax on mobile homes is determined based on a variety of factors, including the type of mobile home, the location of the purchase, the type of sale (new or used), and whether the home is being sold by a dealer or individual. Generally, a mobile home sold by a dealer will be subject to a 6% sales tax, while a used home sold by an individual will be subject to a 6.5% sales tax. The tax rate may be higher if the mobile home is located in a county or municipality that has an additional local sales tax. All taxes must be paid to the county property appraiser before the transfer of ownership can be completed.
The Mobile Home Dealer are licensed mobile home brokers in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message.
This is Mark Kaiser with The Mobile Home Dealer, and we help mobile home Buyers and Sellers get to a better place in life.
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