Ad Valorem Taxation of Mobile Homes, Manufactured Homes, and Modular Homes
Under Mississippi law, modular homes are considered real property and are not titled through the Mississippi Department of Revenue’s Motor Vehicle Services Bureau. Transfer of the ownership of a modular home is accomplished through conveyance of a deed, just like a house.
A “modular home” means a structure that is:
- Transportable in one (1) or more sections;
- Designed to be used as a dwelling when connected to the required utilities, and includes plumbing, heating, air conditioning, and electrical systems with the home;
- Certified by its manufacturers as being constructed in accordance with a nationally recognized building code; and
- Designed to be permanently installed at its final destination on an approved foundation constructed in compliance with a nationally recognized building code. The term “modular home” does not include manufactured housing as defined by the National Manufactured Housing Construction and Safety Standards Act of 1974.
Under Mississippi law, mobile homes and manufactured homes are considered personal property and are required to be titled through the Mississippi Department of Revenue’s Motor Vehicle Services Bureau. Transfer of the ownership of a mobile home or manufactured home classified as personal property is accomplished by signing over the title to a new owner and the new owner applying for a title in their name, just like other motor vehicle ownership transfers.
There are two (2) optional avenues to have mobile homes and manufactured homes treated as real property for ad valorem tax purposes:
Treatment of a mobile home or manufactured home (personal property) as real property for ad valorem tax purposes only. (See Miss. Code Ann. Section 27-53-15(2))
The owner of a mobile home or manufactured home who also owns the land on which the mobile home or manufactured home is located can, at the time of registration, opt to have the mobile home or manufactured home classified as real property. This option only changes how the property is taxed for ad valorem tax purposes. The mobile home or manufactured home will keep its identity as personal property.
With this option, the owner:
- Maintains separate ownership of the mobile home or manufactured home (through title) and the land (through deed);
- Can file for homestead exemption if the property is their primary residence; and
- Can easily sell the mobile home or manufactured home separate from the land.
The process to elect this option is:
- The owner must own the land and the mobile home or manufactured home.
- The mobile home or manufactured home must have wheels and axles removed and must be anchored and blocked in accordance with the rules and procedures promulgated by the Mississippi Department of Insurance. Once completed, the mobile home or manufactured home is considered “affixed to a permanent foundation.”
- At this point, the county Tax Assessor adds the mobile home or manufactured home to the county’s real property roll.
- The county Tax Assessor issues a certificate certifying that the mobile home or manufactured home is classified as real property for ad valorem tax purposes only.
The Tax Assessor collects the following fees (fees are subject to change) from the owner
Issuance of Certificate $10.00 Filing Fee $25.00 + $1.00 for each page over the first five (5) pages - The county Tax Assessor files this certificate with the Chancery Clerk for recordation in the county’s land records.
- Once recorded, the Chancery Clerk forwards the certificate to the owner.
Disposition:
- The mobile home or manufactured home retains its identity as personal property, with its title remaining valid.
- Depending on specific circumstances, a mobile home or manufactured home classified as real property under Miss. Code Ann. Section 27-53-15(2) may be treated as Class I or Class II property under Article 4, Section 112 of the Mississippi Constitution.
- If the mobile home or manufactured home is sold separately from the land, the title must be endorsed by the seller and the buyer, and a new title must be applied for in the new owner’s name.
- If the mobile home or manufactured home is sold together with the land, the title must be endorsed by the seller and the buyer, and a new title must be applied for in the new owner’s name.
- If the new owner who acquires both the mobile home or manufactured home and the land on which it sits wishes to have the mobile home or manufactured home treated as real property for purposes of ad valorem taxation, the new owner must complete the certification process anew.
Retirement of mobile home or manufactured home title with conversion to real property. (See Miss. Code Ann. Section 63-21-30)
The owner of a mobile home or manufactured home who also owns the land on which the mobile home or manufactured home is located can convert the mobile home or manufactured home to real property and retire the title. This option changes both how the property is treated for ad valorem tax purposes and for all other legal purposes.
PLEASE NOTE: Miss. Code Ann. Section 63-21-30 creates a single exception to the titling requirements for mobile homes and manufactured homes. In the event there is ever a need to separate a mobile home or manufactured home from the land to which it has been affixed, a new title will need to be issued. The retitling process requires a chain of ownership history. It is imperative that any transfers in ownership of a mobile home or manufactured home affixed to land under Option 2 should include the serial number of the mobile home or manufactured home in the documentation submitted, so that an ownership history can be determined. Failure to maintain the necessary chain of ownership history can impact the marketability of the mobile home or manufactured home and can result in additional time and costs with the retitling process.
With this option, the owner:
- Can convert the mobile home or manufactured home and the land into a single property;
- Can file for homestead exemption if the property is their primary residence;
- Can easily transfer ownership of the mobile home or manufactured home and the land through conveyance of a deed;
- Must complete additional processes (Form 78-909: Affidavit of Severance and Form 78-002: Application for Title) and will incur additional costs if the owner wishes to sell the mobile home or manufactured home separately from the land; and
- Must complete additional processes (Form 78-907: Affidavit of Destruction and Form 78-002: Application for Title) and will incur additional costs if the owner wishes to remove the mobile home or manufactured home from the land in the event of destruction.
The process to elect this option is:
- The owner must own the land and the mobile home or manufactured home.
- The mobile home or manufactured home must have wheels and axles removed and must be anchored and blocked in accordance with the rules and procedures promulgated by the Mississippi Department of Insurance. Once completed, the mobile home or manufactured home is considered “affixed to a permanent foundation.”
- The owner (or agent) must file Form 78-908: Affidavit of Affixation with their Chancery Clerk and pay applicable filing fees.
- The Chancery Clerk shall:
• Record completed Form 78-908: Affidavit of Affixation in the county’s land records;
• Provide a certified copy of the recorded affidavit to the submitting party; and
• Forward a copy of the recorded affidavit to the Tax Assessor.
The owner (or agent) files Form 78-906: Application for Retirement of a Manufactured or Mobile Home Certificate of Title with the Tax Collector and must include:
• A certified copy of Form 78-908: Affidavit of Affixation that was filed with the Chancery Clerk;
• A copy of the instrument documenting ownership of the land to which the mobile home or manufactured home has been affixed;
• One (1) of the following:
o Valid certificate of title for the mobile home or manufactured home;
o Manufacturer’s Certificate or Origin, if never titled; or
o Form 78-910: Affidavit of Ownership for Mobile/Manufactured Homes, if no valid title or Manufacturer’s Certificate of Origin can be produced; and
• Applicable title fees required by the Department of Revenue.- The Tax Collector forwards the filed Form 78-906: Application for Retirement of a Manufactured or Mobile Home Certificate of Title, all required supporting documents, and all required titling fees to the Department of Revenue.
- The Department of Revenue retires the title and notifies the applicant. If no prior title can be located, the Department of Revenue may issue a title to retire.
- Once the title is permanently retired, the Tax Assessor enters the mobile home or manufactured home on the county’s land rolls as real property. (See Miss. Code Ann. Section 27-53-15(3))
Disposition:
- The mobile home or manufactured home loses its identity as personal property, and its title is no longer valid.
- Depending on specific circumstances, a mobile home or manufactured home classified as real property under Miss. Code Ann. Section 27-53-15(3) may be treated as Class I or Class II property under Article 4, Section 112 of the Mississippi Constitution.
- Ownership of the mobile home or manufactured home, along with the land to which it is affixed, can be transferred together via deed and remains real property.
- If the owner wishes to sell the mobile home or manufactured home separate from the land to which it has been permanently affixed, the owner must complete a separate process to sever the mobile home or manufactured home from the land and must apply for a new title before the mobile home or manufactured home sale can take place.
- If the mobile home or manufactured home is destroyed, the owner may need to complete a separate process to sever the mobile home from the land and apply for a new title for insurance settlement purposes.