Under Ohio law, it is the responsibility of owners of manufactured homes (house trailers) to register their homes with the County Auditor for tax purposes. Annually, the Auditor’s office assesses each manufactured home and prepares a tax list. Tax bills are sent to each owner semi-annually. The house trailer tax is distributed back to the local taxing districts (townships and schools) in the same manner as real estate taxes.
Significant changes in the manner in which manufactured and mobile homes are taxed took place on January 1, 2000. Manufactured homes purchased after that date are taxed like real property. If you purchased your home before January 1, 2000, you now have the option of converting to this new taxation method.
Methods of Taxation:
Depreciation Method – This is the method that was originally used for all manufactured homes. The sale price of the home is reduced to either 80% for a furnished home or 95% for an unfurnished home. A depreciation allowance of 5% per year is then applied to the reduced sales price until a maximum depreciation allowance of 35% for furnished homes, or 50% for unfurnished homes is reached. This depreciated amount is then multiplied by 40% to create the assessed or “taxable” value. The assessed value is multiplied by the full tax rate to determine the amount of annual taxes that are billed semi-annually. Manufactured homes acquired prior to January 1, 2000, may either stay on this method or may elect to change to the new Appraisal method.
Appraisal Method – A manufactured home that is purchased after January 1, 2000 will be taxed using the Appraisal method. In addition, owners of existing manufactured homes may elect to convert to this method. Under this method, manufactured homeowners pay a manufactured home tax that is like real property tax. The values of these homes will be adjusted every three years to their estimated market values. The estimated market value of the home will be multiplied by 35% to create an assessed or “taxable” value for the property. This value is then multiplied by the effective tax rate to determine the amount of tax that will be billed semi-annually. The manufactured homeowners that are taxed using this method are also entitled to a 10% rollback and a 2.5% reduction of the taxes billed semi-annually.
Converting to the Appraisal Method:
Owners of manufactured homes acquired prior to January 1, 2000, may choose to convert to the appraisal method, however, you may only change once. To change, all taxes must be paid prior to the conversion and a form must be completed. Transfers after January 1, 2000 will automatically convert to the appraisal method. The Auditor’s office can more fully explain these important changes to you and help you determine if a change to the Appraisal Method would be beneficial to you.
Converting to Real Estate:
Certain manufactured homeowners may be eligible to have their home taxed as real estate. To do so, the owners must meet a certain criteria. Generally speaking, the home must be affixed to a permanent foundation, and the owner of the home must also own the land upon which the home sits. All taxes must be paid, and the title of the manufactured home must be inactivated and surrendered to the Coshocton County Auditor’s Office.
Transfer of Ownership – The County Auditor must transfer used manufactured homes that are sold after January 1, 2000. The sale is subject to a conveyance fee of $4.00 per $1,000 of the sale price. All taxes must be paid prior to the transfer. Once the conveyance is paid in the Auditor’s Office, the Clerk of Courts Title Department will transfer the title without charging sales tax.
Relocation Notice – This notice is required for any manufactured home that is moved on a public road within the state of Ohio. The notice must be attached to the rear of the home during the move. Ohio Law imposes a fine of $100.00 to the owner of the home and $100.00 to the person moving the home for failure to get the relocation notice. A Relocation Notice is available at the County Auditor’s Office for a charge of $5.00. All taxes must be paid on the home at the time the Relocation Notice is issued.
Penalty for Failure to Register a Manufactured Home – All owners of manufactured homes must register their homes with the County Auditor’s Office within 30 days after locating in Coshocton County. Ohio law also imposes a $100.00 fine for failure to register.
Board of Revision – Homeowners taxed under the Appraisal Method may appeal the valuation of their manufactured home with the Board of Revision by filing a complaint between January 1 and March 31. Complaint forms (DTE Form 1) are available in the County Auditor’s Office.
Interest on Delinquent Taxes – Delinquent taxes on manufactured homes are subject to interest charges.