When selling a mobile home in Sarasota, who pays the tax?
When we work with mobile home Buyers and Sellers in Sarasota, they oftentimes have many questions and concerns about how the closing is done when selling a mobile home on leased land.
Have you been curious as to who pays the tax on a mobile home that’s sold on leased land?
Wondering who the tax is paid to and for how much?
We have learned that providing a thorough explanation to both the Buyers and Sellers about who pays what tax when, prior to the closing of a mobile home on leased land helps tremendously once the home is ready to be sold.
Mobile homes on leased land are taxed in the state of Florida as personal property. This is the same way a boat or a vehicle is taxed. The reason for this is, is that the Buyer of this mobile home is just buying the home and renting the land underneath.
If the Buyer were to buy the home and the land that sits on, then the home would be viewed as real estate and not as a traditional personal property transaction.
In the following example we’ll go over, I’ll assume that the transaction of the mobile home on leased land is being handled by a licensed, bonded and insured mobile home broker within the state of Florida, such as we, at the Mobile Home Dealer.
One of the huge advantages of working with a licensed mobile home broker is that one of our requirements by the state is to ensure proper transfer of title from the Seller to the Buyer.
With this understanding, the tax on a mobile home on leased land is paid by the Buyer of the mobile home to the broker at the time of closing.
This tax payment is then paid by the broker to the state of Florida on behalf of the buyer.
When the mobile home is purchased in Sarasota County, the tax will be assessed at 7% of the total purchase price; 6% is paid to the state of Florida and 1% is a Sarasota County tax.
When buying a mobile home on leased land in Sarasota County, it is important for all Buyers to take the 7% sales tax into consideration when making an offer on the mobile home.
The last thing anyone wants to do is to agree to a purchase price of a mobile home only for you not to be able to afford the tax when you go to close on a home!
That will cause a major problem when trying to move into the home that you have been dreaming about!
This is Mark Kaiser with a Mobile Home Dealer and we help mobile home buyers and sellers get to a better place in life.