Background
Paper
81-4
MOBILE
HOME
TAXATION
MOBILE
HOME
TAXATION
Table
of
Contents
I.
Introduction
• • •
1
II.
Overview
of
Mobile
Home
Taxation
in
Nevada.
1
III.
1973-74
Legislative
Interim
Study
of
Mobile
Home
Taxation
•.
••••
1979-80
Interim
Study
of
the
Problems
of
Owners
and
Renters
of
Mobile
Homes • • •
Recent
Trends
in
Mobile
Home
Values
• •
IV.
Recent
Tax
Commission
Actions
Regarding
Mobile
Home
Valuation
in
Nevada
V.
Summary
and
Conclusion
VI.
Suggested
Reading
VII.
Appendix
••••••
2
4
5
7
• •
10
. •
12
14
MOBILE
HOME
TAXATION
I
INTRODUCTION
When
house
or
automobile
trailers
first
made
their
appearance
on
the
American
scene
in
the
late
1920's,
their
taxation
presented
no
new
problems.
They
were
universally
considered
personal
property
and
taxable
as
such
under
most
state
laws
or
local
ordinances
imposing
a
personal
property
tax.
Many
changes
have
taken
place
in
the
last
50
years.
The
vehicle
that
is
towed
from
place
to
place
is
now
called
a
travel
trailer,
while
the
structure
that
is
usually
intended
to
make
only
one
trip,
to
a
residential
site,
is
called
a
mobile
home.
The
mobile
home
has
had
a
dramatic
impact
on
the
housing
market
and
has
raised
new
issues
concerning
taxation.
With
the
soaring
costs
of
conventional
homes,
many
Nevadans
are
seeking
alternate
forms
of
housing
which
can
meet
their
needs
at
more
modest
price
levels.
A
viable
option
for
many
has
been
the
mobile
home.
In
1970,
the
U.S.
Bureau
of
the
Census
counted
20,662
mobile
homes
in
Nevada.
The
department
of
taxation
advises
that
the
current
figure
is
approximately
51,000.
The
1980's
should
see
continued
growth
in
mobile
homes
in
Nevada
-
especially
if
the
MX
system
is
deployed
primarily
in
the
proposed
12-county
Nevada
and
Utah
deployment
region.
If
this
occurs,
the
Air
Force
estimates
that
the
net
increase
in
MX
related
mobile
home
housing
in
Nevada
could
be
over
10,000
mobile
homes
by
1986.
This
growth
in
mobile
homes
and any
changes
in
their
method
of
taxation
or
assessment
could
affect
greatly
state
and
local
revenues.
This
paper
provides
a
brief
review
of
recent
events
relating
to
mobile
home
taxation
in
Nevada.
The
primary
focus
is
mobile
home
valuation
for
tax
purposes.
II
OVERVIEW
OF
MOBILE
HOME
TAXATION
IN
NEVADA
A
mobile
home
in
Nevada
is
subject
to
sales
and
use
taxes
and
to
either
the
ad
valorem
personal
property
or
real
property
tax
depending
on
whether
its
running
gear
is
removed,
it
is
permanently
affixed
to
land
which
is
owned
by
the
owner
of
the
mobile
home
and
other
conditions
are
met.
Mobile
homes
are
also
subject
to
registration
and
licensing
fees
if
they
are
moved
over
public
highways.
1.
Mobile
Home
Depreciation
Schedules
Historically,
mobile
homes
have
been
valued
for
assessment
purposes
in
Nevada
based
on
various
depreciation
schedules.
These
schedules
have
been
modified
to
meet
the
changing
nature,
use,
quality
and
life
expectancy
of
the
homes.
The
schedules
have
also
been
the
subject
of
much
contro-
versy
and
legislative
concern,
especially
in
the
mid
to
late
1970's.
In
the
1971-72
tax
year,
county
assessors
used
a
straight
line
8
percent
depreciation
schedule
based
on
a
10-year
life
with
a 20
percent
residual
value.
Under
this
schedule,
mobile
homes
were
depreciated
8
percent
each
year
for
10
years,
at
which
time
they
reached
"20
percent
good."
Mobile
homes
then
remained
at
"20
percent
good"
for
tax
purposes
for
the
balance
of
their
lives.
A
revision
of
this
schedule
took
place
during
the
1972-73
tax
year
when
market
data
indicated
that
mobile
homes
were
experiencing
a
marked
depreciation
in
their
early
years
and
that
their
service
lives
were
actually
longer
than
10
years.
Sales
data
at
that
time
indicated
that
the
actual
service
life
of
a
typical
mobile
home
was
closer
to
20
years,
and
that
most
mobile
homes
were
selling
at
a
price
well
above
20
percent
of
their
original
retail
price
at
that
age.
The
mobile
home
depreciation
schedule
was
revised
again
during
the
1973-74
tax
year.
Sales
data
from
Nevada's
counties
used
for
the
first
time
and
from
the
"Official
Mobile
Home
Market
Report"
showed
that
mobile
homes
were
depreciating
less
rapidly
in
their
early
years
and
so
the
1972-73
schedule
was
adjusted
to
"curve"
less
sharply
in
those
years.
Since
the
1973-74
tax
year,
the
same
basic
depreciation
schedule
has
been
used
in
Nevada
to
value
mobile
homes
for
personal
property
tax
purposes.*
Mobile
homes
which
are
classified
as
real
property
pursuant
to
the
provisions
of
NRS
361.244
are
valued
by
assessors
according
to
NRS
361.227
as
is
all
other
real
property.
1973-74
Legislative
Interim
Study
of
Mobile
Home
Taxation
Concern
about
issues
pertaining
to
mobile
home
taxation
surfaced
during
the
1973
legislative
session
and
that
legislature
passed
Assembly
Concurrent
Resolution
No.
35
which
directed
the
legislative
commission
to
study
the
methods,
procedures
and
bases
of
taxation
of
mobile
homes.
The
resolution
expressed
the
legislature's
belief
that
such
a
study
was
necessary
to
ensure
that
mobile
homes
be
taxed
*The
appendix
contains
the
Nevada
tax
commission's
current
instructions
for
the
assessment
of
mobile
homes.
2.
fairly
and
to
bring
about
the
maximum
permissible
revenue
for
the
state.
The
legislative
commission's
subcommittee
which
studied
the
matter*
made
the
following
seven
recommendations:
1.
That
ad
valorem
property
taxation
of
mobile
homes
be
retained.
2.
That
all
mobile
homes
be
assessed
and
taxed
as
real
property
at
the
option
of
the
owner,
but
the
taxes
so
assessed
should
not
become
a
lien
on
land
owned
by
any-
one
other
than
the
mobile
home
owner.
3.
That
mobile
home
owners
be
granted
similar
benefits
in
the
quarterly
payment
of
property
taxes
and
a
redemption
period
for
delinquent
taxes
as
are
enjoyed
by
other
homeowners.
The
increasing
permanence
of
mobile
homes
has
become
such
that
differentiation
of
the
basis
of
mobility
has
lost
much
of
its
vitality.
4.
That
stratified
depreciation
for
mobile
homes
be
studied
now
with
the
object
of
implementation
in
the
near
future.
5.
That
the
city-county
relief
tax
generated
by
mobile
homes
be
returned
to
the
county
of
placement
if
different
from
the
county
of
sale
to
help
finance
community
services.
6.
That
a
5-day
trip
permit
issued
by
the
county
assessor
replace
the
current
license
plate
to
close
off
present
opportunities
for
"skipping."
7.
That
the
Nevada
tax
commission
"computerize"
its
valuation
program
for
mobile
homes.
Computerization
is
now
warranted
by
the
rapid
growth
in
Nevada's
mobile
home
population.
*The
final
report
of
the
subcommittee
is
LCB
Bulletin
No.
119.
This
bulletin
provides
a
comprehensive
discussion
of
mobile
home
taxation
in
Nevada
and
elsewhere
and
covers
such
topics
as
valuation,
methods
of
mobile
home
taxation,
bases
of
mobile
home
taxation
and
basic
policy
considera-
tions
in
mobile
home
taxation.
3.
Most
of
these
recommendations
have
been
carried
out:
(1)
The
ad
valorem
property
taxation
of
mobile
homes
has
been
retained;
(2)
A.B.
211
passed
by
the
1979
legisla-
ture
permits
certain
permanently
affixed
mobile
homes
to
be
assessed
and
taxed
as
real
property;
(3)
In
counties
having
populations
over
100,000
mobile
home
owners
may
pay
their
taxes
quarterly
(see
NRS
361.483)
and
mobile
homes
constituting
real
property
are
provided
a
2-year
redemption
period
prior
to
the
sale
for
delinquent
taxes
(see
NRS
361.565),
and;
(4)
A
trip
permit
system
has
been
put
into
effect
to
close
off
opportunities
for
"skipping"
(see
NRS
489.601).
Conversely,
however,
the
Nevada
tax
commission
has
never
computerized
a
valuation
system
for
mobile
homes.
According
to
the
department
of
taxation,
$40,000
was
appropriated
to
the
1975-77
fiscal
year
department
budget.
This
money
was
not
used
and
it
reverted
to
the
general
fund
in
1978.
Moreover,
the
1975
legislature,
through
A.B.
224
(chapter
587,
Statutes
of
Nevada
1975)
required
the
Nevada
tax
commission
to
classify
all
mobile
homes
in
the
state
on
the
basis
of
those
factors
which
most
closely
determine
their
service
lives
and
fix
and
establish
their
value
for
assessment
purposes.
As
discussed
later,
the
tax
commission
took
no
action
to
modify
the
mobile
home
depreciation
schedule
until
December,
1980.
1979-80
Interim
Study
of
the
Problems
of
Owners
and
Renters
of
Mobile
Homes
Mobile
home
taxation
issues
resurfaced
during
a
legislative
commission
subcommittee
study
of
the
problems
of
owners
and
renters
of
mobile
homes
during
the
recent
legislative
interim.
The
interim
report
recommends
that
mobile
homes
treated
as
real
property
be
exempt
from
sales
tax
and
that
the
depre-
ciation
schedule
for
mobile
homes
be
revised.
In
referring
to
the
existing
depreciation
schedule,
the
subcommittee's
report
says,
in
part:
According
to
several
witnesses,
the tax
commission's
existing
mobile
home
depreciation
schedule
is
outdated
and
based
on
faulty
assumptions
concerning
the
time
frame
within
which
mobile
homes
depreciate
in
value
and
the
rate
at
which
they
depreciate.
Presentations
to
the
subcommittee
indicate
that
certain
mobile
homes
actually
appreciate
in
value.
Some
persons
appearing
before
the
subcommittee
pointed
out
that
new
mobile
home
tax
appraisal
guides,
such
as
the
National
Automobile
Dealers
Association's
"Mobile
Home
Appraisal
Guide,"
could
be
of
use
to
the tax
commission
in
revising
its
mobile
home
depreciation
schedule
* * *
4.
* * *No
matter
what
guide
is
used,
the
subcommittee
believes
that
the
department
of
taxation's
mobile
horne
depreciation
schedule
needs
to
be
updated
* *
*.
* *
*A
revised
mobile
horne
depreciation
schedule
will
help
dispel
the
view
that
mobile
horne
owners
are
not
"paying
their
fair
share"
and
also
provide
for
more
equitable
taxation
of
all
property
owners
during
this
time
of
concern
about
equitable
and
appropriate
tax
levels.*
III
RECENT
TRENDS
IN
MOBILE
HOME
VALUES
Recent
studies
show
that
contrary
to
most
depreciation
schedules
in
use
for
tax
purposes,
mobile
homes
appreciate
in
value
in
most
states.**
The
degree
of
appreciation
appears
to
be
related
to
several
factors
including
age,
size,
location,
upkeep
and
main-
tenance,
original
quality
of
the
horne,
supply
and
demand
for
housing
within
a
particular
area
and
turn-over
rate.
A
1979
study
by
Foremost
Insurance
Company
found
that,
nationwide,
double-wide
mobile
homes
appreciate
between
4
and
10
percent
per
year.
A
similar
study
by
the
Arizona
Manufactured
Housing
Association
indicates
that
the
average
mobile
horne
appreciates
about
6
percent
per
year,
while
newer
homes
increase
more
than
12
percent.***
The
Foremost
study
said
that
the
level
of
appreciation
is
also
affected
to
some
degree
by
geographic
area
within
the
United
States
which
Foremost
breaks
down
into:
Type
1 -
Rapid
Appreciation,
Type
2 -
Steady
Increase,
and
Type
3 -
Depreciation.
States
with
"rapid
appreciation"
include
*See
pages
16
and
17
of
LCB
Bulletin
No.
81-9,
The
Problems
of
Owners
and
Renters
of
Mobile
Homes,
which
was
prepared
pursuant
to
A.C.R.
3
of
the
1979
legislative
session.
**See
"Old
Myth
Laid
to
Rest:
Mobile
Homes
Appreciate
in
Value."
Manufactured
Housing
Dealer,
(January
1980)
and
"States
Reconsider
Mobile
Horne
Taxation."
The
Wall
Street
Journal,
(November
26,
1980).
***See
the
Wall
Street
Journal
article
referenced
in
the
previous
note.
5.
Alaska,
Arizona,
California,
Florida,
New
Jersey,
Oregon
and
Washington.
California's
rate
is
extremely
high,
10-15
percent
per
year,
no
matter
the
size
of
the
home.
Colorado,
Idaho,
Montana,
Nevada,
New
Mexico,
and
Utah
are
classified
by
the
Foremost
study
as
nsteady
increase"
states.
In
certain
states
in
the
east
and
south,
such
as
Alabama,
Delaware,
Georgia,
Maine,
North
Carolina,
Vermont
and
others,
mobile
homes
still
depreciate,
according
to
the
Foremost
study.
Significant
factors
determining
the
rate
of
appreciation
of
a
mobile
home
are
availability
of
park
spaces
and
the
degree
to
which
restrictive
zoning
laws
exist.
There
is
a
definite
positive
correlation,
the
Fore-
most
study
says,
between
park
space
availability
and
increasing
mobile
home
values.*
California
recently
modified
its
laws
and
regulations
affect-
ing
the
taxation
and
assessment
of
mobile
homes
to
reflect
the
changing
value
of
mobile
homes.
For
many
years,
mobile
homes
in
California
were
subject
to
the
state's
vehicle
licensing
fee
law,
which
is
in
lieu
of
local
property
taxes.
During
the
1979
portion
of
its
1979-80
regular
session,
the
California
legislature
enacted
two
bills,
A.B.
887
and
S.B.
1004
(chapters
1160
and
1180
of
the
statutes
of
1979)
which
subjected
certain
mobile
homes
to
property
taxation.
Under
the
laws,
all
new
mobile
homes
sold
after
July
1,
1980,
are
subject
to
property
tax.
Older
homes
are
still
licensed
and
are
only
required
to
pay
in
lieu
fees.
If
pay-
payment
of
those
fees
becomes
delinquent
for
more
than
120
days,
however,
the
homes
then
go
on
the
property
tax
roll.
Moreover,
all
mobile
homes
that
are
permanently
affixed
to
real
property
become
subject
to
property
taxation
as
real
property
regardless
of
the
date
of
sale.
California's
new
mobile
home
tax
laws
also
provide
sales
tax
reductions
and
exemptions
for
the
sale
of
mobile
homes.
Concomitant
with
California's
legislative
change
to
its
mobile
home
taxation
laws
was
the
development
by
the
California
State
Board
of
Equalization
of
new
mobile
home
assessment
standards.
These
standards
address
bases
of
cost
and
a
classification
system
which
is
designed
to
coincide
with
California's
single-family
residential
quality
class
system.
Under
the
new
mobile
home
valuation
system,
the
value
of
each
mobile
home
must
be
determined
by
an
actual
physical
inspection
of
the
home.
Factors
*The
shortage
of
mobile
home
spaces
in
certain
mobile
home
parks
in
Nevada
and
restrictive
zoning
ordinances
are
addressed
in
LCB
Bulletin
No.
81-9,
The
Problems
of
Owners
and
Renters
of
Mobile
Homes.
6.
considered
include
square
foot
replacement
cost,
individual
components,
accessories
and
"upgrades"
and
the
condition
of
the
horne.
California's
new
appraisal
guide
contains
a
depreciation
schedule,
which
declines
to
44
percent
good
after
25
years
but
cautions:
The
depreciation
table
in
this
manual
is
suggested
as
a
guide
to
appraisers.
The
percentage
rates
are
appli-
cable
to
the
replacement
cost
estimates
and
no
minimum
percent
good
is
intended.
They
are
averages
based
upon
an
analysis
of
actual
market
purchase
price
infor-
mation,
and
revisions
to
the
table
may
be
necessary
as
more
market
data
becomes
available.
The
percentages
only
apply
to
mobile
homes
in
average
condition.
A
separate
adjustment
should
be
considered
for
deferred
maintenance
(cost
to
cure).
It
is
strongly
suggested
that
the
appraiser
carefully
evaluate
the
effective
age
of
the
mobile
horne.
This
is
a
critical
adjustment
that
will
dramatically
affect
the
cost
approach.
Investigation
has
shown
that
the
condition
of
the
mobile
horne
may
have
a
greater
influence
on
value
than
age.*
IV
RECENT
TAX
COMMISSION ACTIONS
REGARDING
MOBILE
HOME
VALUATION
IN
NEVADA
According
to
an
October
6,
1980
report
by
the
division
of
assessment
standards,
the
department
of
taxation
took
several
actions
from
1975
to
1978
in
response
to
the
passage
of
A.B.
224
of
the
1975
legislative
session
(see
NRS
361.325(1)
(b))
which
requires
it
to
"classify
all
mobile
homes
on
the
basis
of
those
factors
which
most
closely
determine
their
service
lives
for
assessment
purposes."
The
report,
"DOAS
Report
on
Mobile
Homes
for
the
Nevada
Tax
Commission,
October
6,
1980,"
says
certain
of
those
actions
included
the
fOllowing:
*See
page
20
of
the
California
State
Board
of
Equalization's
publication
entitled
Mobile
Homes.
7.
Obtained
* * *
(information)
from
different
firms
or
agencies
involved
in
appraisal
work
outlining
their
methods
of
mobile
homes
appraisal
and
classification
methods
used.
Obtained
* * *
(information)
from
mobile
home
builders
con-
cerning
"quality
grade"
of
their
homes
by
model
names.
Obtained
* * *
(information)
from
mobile
home
dealers
throughout
the
state
concerning
suggested
appraisal
methods
for
mobile
homes
and
possible
methods
of
classi-
fication.
Obtained
* *
*(information)
from
many
states
outlining
their
methods
presently
under
use
to
appraise
mobile
homes,
and
specific
classification
systems
utilized.
Investigated
alternative
methods
of
obtaining
suggested
retail
price
of
mobile
homes.
Investigated
a
stratified
or
classification
system
of
depreciation
schedules
based
upon
the
Marshall
Swift
classification
system.
Investigated
the
National
Automobile
Dealers
Association
(NADA)
system
of
valuing
mobile
homes.
Polled
county
assessors
on
their
reactions
to
NADA
and
obtained
appraisal
comparisons
between
the
NADA
system
and
the
depreciation
schedule
originally
adopted
in
1973-74,
and
between
actual
market
sales.
Analyzed
350
sales
from
several
counties
in
a
study
requested
by
the
Nevada
tax
commission
to
compare
differences
between
the
present
depreciation
schedule,
the
NADA
system,
and
actual
market
sales.
The
NADA
system
was
recommended
tentatively
for
approval
by
the
department
of
taxation.*
In
late
1978,
the
department
presented
its
findings
on
the
National
Automobile
Dealers
Association's
stratified
system
for
valuing
mobile
homes
to
the
Nevada
tax
commission.
According
to
correspondence
from
the
department
of
taxation,
The
Nevada
tax
commission
did
not
adopt
the
system
because
of
the
perceived
cost
to
the
counties.**
*See
pages
4
and
5
of
the
DOAS
Report
on
Mobile
Homes
for
the
Nevada
tax
commission,
October
6,
1980.
**See
memorandum
dated
December
22,
1980,
from
Jeanne
Hannafin,
deputy
executive
director
of
the
department
of
taxation,
to
Donald
A.
Rhodes,
chief
deputy
research
director.
The
subject
of
the
memorandum
is
"Valuation
of
Mobile
Homes
for
Taxation
Purposes".
8 •
The
mobile
home
valuation
matter
was
once
again
considered
by
the
Nevada
tax
commission
at
an
October
6,
1980
meeting.
At
that
time
the
department
of
taxation's
division
of
assessment
standards
submitted
a
series
of
valuation
methods
which
it
believed
could
be
used
to
achieve
the
legislative
mandate
contained
in
A.B.
224
of
the
1975
legislative
session
(see
NRS
361.325(1)
(b))
and
to
provide
a
realistic
valuation
of
all
mobile
homes
in
Nevada.*
According
to
correspondence
from
the
department
of
taxation,
the
commission
was
impressed
with
a
proposal
based
on
the
California
system
but
felt
that
it
would
place
expanded
responsibility
on
the
county
assessors
by
requiring
physical
inspection
of
all
mobile
homes.
Accordingly,
it
directed
staff
to
meet
with
the
assessors
prior
to
taking
any
action
and
also
directed
that
additional
comments
and
advice
be
solicited
from
the
general
public.
A
meeting
was
held
with
the
assessors
in
November
and
a
public
hearing
was
conducted
on
December
2,
1980.
The
assessors
expressed
several
concerns
about
the
proposed
system,
including
the
cost
and
the
need
for
additional
man-
power
to
carry
it
out.
The
department
advises,
however,
that
there
was
a
consensus
among
the
assessors
that
the
new
system
would
provide
an
equitable
and
accurate
method
for
the
valuation
of
mobile
homes.
Certain
members
of
the
public,
the
department
of
taxation
says,
expressed
the
opinion
that
the
proposed
mobile
home
valuation
system
would
cause
unfair
taxation
of
mobile
homes
and
exacerbate
existing
inequities
in
the tax
laws
and
regulations.
According
to
the
department,
the
following
are
the
major
concerns
expressed
by
the
public
about
mobile
home
taxation
in
Nevada:
Mobile
homes,
as
personal
property,
are
subject
to
sales
tax,
both
upon
original
purchase
and,
if
through
a
broker
or
dealer,
on
resales.
Accessories
or
appurtenances
such
as
skirting
or
steps,
while
required
to
be
valued
for
property
tax
purposes,
are
often
reduced
to
scrap
value
upon
any
relocation
of
the
mobile
home.
*The
DOAS
Report,
referenced
earlier,
discusses
these
approaches
which
include
"non-physical
approach
methods,"
such
as
the
system
currently
in
use
and
various
"physical
appraisal
methods"
including
the
NADA
Complete
Appraisal
System,
and
the
Marco,
Marshall
Swift
and
California
systems.
9.
Services
received
from
local
governments
by
mobile
home
residents
are
not
equal
to
those
received
by
the
owner
of
a
conventional
home,
(i.e.:
individual
street
maintenance,
street
lighting,
etc.)*
After
weighing
these
comments
and
presentations,
the
Nevada
tax
commission
decided,
at
the
December
2,
1980,
meeting,
to
adopt
the
department's
proposal
which
is
similar
to
California's
mobile
home
classification
system.
The
tax
commission
determined
that
the
new
system
should
be
put
into
effect
on
July
1,
1982,
for
those
mobile
homes
on
the
unsecured
roll
and
on
July
1,
1983,
for
those
on
the
secured
roll.
These
dates
were
chosen,
the
department
of
taxation
advises,
to
provide
the
county
assessors
18
months
to
prepare
the
necessary
computer
programs
and
budgets
and
to
hire
the
necessary
personnel
to
make
the
physical
inspec-
tions
of
mobile
homes.
According
to
a
December
22
memorandum
from
the
department
of
taxation
to
the
research
division:
The
new
system
provides
for
valuation
of
mobile
homes
based
on
the
following
factors:
(a)
Cost
per
square
foot
(b)
Quality
(c)
Condition
(d)
Accessories*
* *
* *
*The
new
method
of
appraisal
will
substantially
increase
the
assessments
of
mobile
homes,
particularly
older
models.
It
will
create
a
more
equitable
and
uniform
method
of
assessment
which
will
shift
some
of
the tax
burden
presently
borne
by
"stick-housing"
to
mobile
home
owners.
(See
December
22,
1980,
memorandum
referenced
earlier.)
v
SUMMARY
AND
CONCLUSION
The
ideal
tax
system
strives
towards
the
goal
of
horizontal
equity:
the
property
tax
should
affect
equally
all
those
who
own
similar
kinds
of
property
of
the
same
value.
There
are
disagreements
over
the
similarities
and
dissimilarities
between
mobile
and
conventional
homes.
Those
disagreements
*See
December
5,
1980,
letter
from
Roy
E.
Nixon,
executive
director
of
the
department
of
taxation
to
Andrew
P.
Grose,
research
director.
10.
are
becoming
less
pronounced,
however,
with
the
changing
appearance,
construction
and
expected
life
of
mobile
homes.
Mobile
homes
must
be
built
in
accordance
with
a
federal
standard
which
is
substantially
equivalent
to
the
codes
adhered
to
by
local
jurisdictions
for
site
built
housing.*
In
Nevada,
although
certain
mobile
homes
may
be
classified
as
real
property,
most
mobile
homes
are
classified
as
personal
property
and
conventional
homes
are
classified
as
real
property.
Both
are
assessed
and
taxed
at
a
uniform
and
equal
rate.
One
primary
difference,
however,
is
the
depreciation
schedule
used
to
value
mobile
homes
and
this
difference
has
led
to
criticisms
about
tax
equity
and
mobile
homes
not
contributing
their
fair
share
of
taxes
to
the
governments
of
the
localities
in
which
they
are
sited.
The
effects
of
these
criticisms,
it
is
said,
include
the
imposition
of
restrictive
zoning
against
mobile
homes
and,
to
some
extent,
the
dampening
of
the
moti-
vation
of
certain
lenders
to
provide
long-term
financing
for
mobile
home
purchases.
The
Nevada
legislature
addressed
the
mobile
home
valuation
system
in
1975
in
NRS
361.325(1)
(b)
which
requires
the
Nevada
tax
commission
to
classify
mobile
homes
on
the
basis
of
those
factors
which
most
closely
determine
their
service
lives
and
fix
and
establish
their
valuation
for
assessment
purposes.
The
Nevada
tax
commission
has
used
the
same
basic
mobile
home
depreciation
schedule
and
classification
system
since
the
early
1970's.
At
its
December
2,
1980,
meeting
it
determined
that
the
system
and
schedule
should
be
modified
beginning
July
1,
1982.
*See
the
National
Mobile
Home
Construction
and
Safety
Standards
Act
of
1974,
42
USCA
5041
et
~.
and
the
regulations
known
as
the
Mobile
Home
Construction
and
Safety
Standards,
24
CFR
3280
et
seq.
of
the
Department
of
Housing
and
Urban
Development.
11.
VI
SUGGESTED READING*
Bulletin
No.
145,
Instructions
For
Assessment
of
Land,
Live-
stock,
Merchandise
Stock,
Mobile
Homes,
Campers,
Oil
and
Gas
Leases,
Possessory
Interest.
Nevada
Tax
Commission,
(July
1,
1980).
"California's
Ad
Valorem
Tax
on
Mobilehomes."
Speech
prepared
by
Richard
Nevins,
Fourth
District
Member
California
State
Board
of
Equalization
for
delivery
at
September
22,
1980,
Western
States
Association
of
Tax
Administrators'
Conference,
Salt
Lake
City,
Utah.
December
22,
1980,
memorandum
from
Jeanne
Hannafin,
deputy
executive
director,
Nevada
department
of
taxation
to
Donald
A.
Rhodes,
chief
deputy
research
director,
subject:
"Valua-
tion
of
Mobile
Homes
for
Taxation
Purposes".
DOAS
Report
on
Mobile
Homes
For
The
Nevada
Tax
Commission,
October
6,
1980.
January
23,
1980,
memorandum
from
Jeanne
B.
Hannafin,
deputy
executive
director,
Nevada
department
of
taxation
to
Donald
A.
Rhodes,
chief
deputy
research
director,
subject:
"Response
to
Recommendations
Proposed
in
Bulletin
No.
119
Pertaining
to
Mobile
Horne
Taxation".
LCB
Bulletin
No.
119,
Mobile
Horne
Taxation,
(September
1974).
LCB
Bulletin
No.
81-9,
The
Problems
of
Owners
and
Renters
of
Mobile
Homes,
(August
1980).
Letter
dated
December
5,
1980,
from
Roy
E.
Nickson,
executive
director,
department
of
taxation
to
Andrew
P.
Grose,
research
director.
Letter
dated
September
11,
1980,
from
Roy
E.
Nickson,
executive
director,
department
of
taxation
to
Andrew
P.
Grose,
research
director.
*These
and
other
publications
pertaining
to
rent
control
are
available
for
review
in
the
research
division's
library.
Also
available
are
copies
of
relevant
state
statutes.
12.
Malnight,
John.
"Old
Myth
Laid
to
Rest:
Mobile
homes
appreciate
in
value."
Manufactured
Housing
Dealer,
(January
1980).
March
18,
1980,
memorandum
to
the
chairman
and
members
of
the
legislative
commission's
subcommittee
to
study
the
problems
of
owners
and
renters
of
mobile
homes
from
Donald
A.
Rhodes,
chief
deputy
research
director,
subject:
"Responses
to
staff
survey
letter
inquiring
if
mobile
homes
are
taxed
as
real
property
and
excluded
from
sales
tax."
Memorandum
from
Chuck
Chinnock,
supervisor,
division
of
assessment
standards
to
Nevada
tax
commission,
Subject:
"Department
of
Taxation's
Position
on
Mobile
Home
Taxation--
Classification
and
Consideration
of
Locational
Value."
Mobile
Home
Assessment
Workshop,
Assessment
Standards
Division,
California
State
Board
of
Equalization,
(November
3,
1980).
Mobile
Homes,
California
State
Board
of
Equalization.
A.H.
531.35,
3-1-81.
Mobile
Home
Property
Taxation
Laws
Enacted
Prior
to
1
July
1980
at
the
1979-80
regular
session
of
the
Legislature
of
the
State
of
California.
Mrozek,
Donald
Lee.
"The
Search
For
an
Equitable
Approach
to
Mobile
Home
Taxation",
De
Paul
Law
Review,
(Vol.
XXI
1972),
1008-1035.
States
Reconsider
Mobile
Home
Taxation,
The
Wall
Street
Journal,
(November
26,
1980).
"Taxation
of
Mobile
Homes"
The
Air
Force
Law
Review,
(Spring
1977)
240-249.
"Taxation
of
Mobilehomes
on
and
after
July
1,
1980,"
Mobile
Home
Information
Handout,
California
State
Board
of
Equalization
(8-80).
Thacher,
David
0.,
Ronald
L.
Shane
and
Michael
E.
Wetzstein.
"Nevada
Mobile
Home
Taxation:
Proposed
Changes."
Nevada
Review
of
Business
and
Economics,
(Fall
1978),
8-10.
13.
VII
APPENDIX
ASSESSMENT
OF
MOBILE
HOMES
1980-1981
In
accordance
with
NRS
361.325
on
or
before
the
1st
Monday
of
June,
1980
the
Nevada
Tax
Commission
fixed
the
following
method
of
determining
the
assessed
value
of
mobile
homes
and
campers
for
the
fiscal
year
1980-1981.
(Values
from
this
bulletin
apply
only
to
mobile
homes
that
are
considered
per-
sonal
property.)
NRS
361.561
1.
"Camper-shell"
means
a
covered
canopy
mounted
on
a
motor
vehicle,
and
which
is
not
equipped
with
permanent
facilities
for
the
preparation
or
storage
of
food
or
for
sleeping
purposes.
2.
"Mobile
Home"
means
a
vehicular
structure,
built
on
a
chassis
or
frame,
which
is
designed
to
be
used
with
or
without
a
permanent
foundation
and
is
capable
of
being
drawn
by
a
motor
vehicle.
It
may
be
used
as
a
dwelling
when
connected
to
utilities
or
may
be
used
permanently
or
temporarily
for
the
advertising,
sales,
display
or
promotion
of
merchandise
or
services.
3.
"Slide-in
Camper"
means
a
portable
unit
designed
to
be
loaded
and
unloaded
from
the
bed
of
a
pickup
truck,
and
so
constructed
as
to
provide
temporary
living
quarters
for
travel,
camping
or
recreational
use.
"Slide-in
camper"
does
not
include
a
covered
canopy
mounted
on
a
motor
vehicle
and
which
is
not
equipped
with
permanent
facilities
for
the
preparation
or
storage
of
food
or
for
sleeping
purposes.
4.
Those
units
identified
as
"chassis
camper,"
"mini
motor
home,"
"motor
home,"
"utility
trailer"
and
"van
conversion"
in
Chapter
482
of
NRS
and
any
other
vehicle
required
to
be
registered
with
the
department
of
motor
vehicles
are
subject
to
the
personal
property
tax
unless
registered
and
taxed
pursuant
to
Chapter
371
of
NRS.
Such
unregistered
units
shall
be
taxed
as
any
other
personal
property.
New
mobile
homes
and
campers
shall
be
valued
for
assessment
purposes
at
35
percent
of
fair
retail
delivered
price.
14.
NRS
361.244
-
Mobile
homes
that
constitute
real
property:
1.
A
mobile
home,
as
defined
in
NRS
361.561,
constitutes
real
property
if
the
running
gear
is
removed
and:
(a)
It
becomes,
on
or
after
July
1,
1979,
permanently
affixed
to
land
which
is
owned
by
the
owner
of
the
mobile
home;
or
(b)
It
became
so
affixed
before
July
1,
1979,
and
the
owner
files
with
the
county
assessor
by
May
1,
1980,
a
statement
declaring
his
desire
to
have
the
mobile
home
classified
as
real
property.
If
a
mobile
home
is
classified
as
real
property,
it
shall
be
valued
by
the
assessor
according
to
NRS
361.227
as
all
other
real
property.
There
will
be
no
requirement
for
the
assessor
to
issue
a
decal
as
provided
in
NRS
361.5643.
In
the
event
the
personal
property
taxes
are
paid
for
a
fiscal
year
and
later
in
that
same
fiscal
year,
the
unit's
running
gear
is
removed,
and
the
unit
is
affixed
to
land
owned
by
the
owner
of
the
unit,
thus
qualifying
the
unit
as
real
property,
the
unit
should
not
be
placed
on
the
secured
roll
until
the
following
fiscal
year.
15.
USED
MOBILE
HOMES
Determination
of
the
assessed
value
of
used
mobile
homes
shall
be
computed
in
the
following
manner.
Multiply
the
suggested
retail
price
(S.R.P.)
as
listed
in
the
"Official
Mobile
Horne
Market
Report"
(Blue
Book)
by
the
"applicable
multiple"
as
shown
in
the
following
depreciation
schedule:
(The
assessed
valuation
in
any
case
shall
not
be
less
than
$100.00.):
Model
Percent
Assessment
Applicable
Year
Age
Good
Ratio
Multiple
1980
New
35%
of
Nevada
retail
delivered
price
1979
1
93
@
35%
=
1978
2
87
=
1977
3
79
=
1976
4
72
=
1975
5
66
=
1974
6
60
=
1973
7
56
=
1972
8
52
=
1971
9
49
=
1970
10
46
=
1969
11
43
=
1968
12
40
=
1967
13
37
=
1966
14
34
=
1965
15
31
=
1964
16
28
=
1963
17
26
=
1962
18
24
=
1961
19
22
=
1960
20 20
=
Example:
Model
year
-
1979
suggested
retail
price
-
$10,000.00
~~~~x~9~3%
good
(7%
depreciated)
$
9,300.00
x
35%
assessment
ratio
~~~~-=-=-
$
3,260.00
OR
(per
above
table)
32.55%
30.45
27.65
25.20
23.10
21.00
19.60
18.20
17.15
16.10
15.05
14.00
12.95
11.90
10.85
9.80
9.10
8.40
7.70
7.00
$10,000
x
32.55%
=
$3,260.00
(Rounded
to
nearest
10
dollars).
Application
of
the
local
tax
rate
will
determine
the
tax
liability.
The
window
decal
is
not
required
for
licensed
mobile
units
nor
on
units
considered
real
property.
16.
