Kanabec County is home to a large number of trailers and manufactured residences, some of which are subject to property taxes and property tax laws.
Property tax law defines a manufactured home as “a structure that is transportable in one or more sections, which is built on a permanent chassis, and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities.” A travel trailer on the other hand is “mounted on wheels, designed to provide temporary living quarters during recreation, camping or travel, and does not require a special highway movement permit based on its size or weight when towed by a motor vehicle.” Furthermore, a park trailer is a trailer that “exceeds 8 -1/2 feet in width but is no larger than 400 square feet and is used as temporary living quarters.”
Manufactured homes are no longer registered or taxed as motor vehicles. A certificate of title is required for ownership in the same manner as for a motor vehicle but they are taxed as personal or real property. Once a manufactured home is titled, the certificate of title serves as a bill of sale in a transfer of ownership. The certificate of title is also required when applying for the homestead classification. If a manufactured home is owned and occupied as the primary residence of the owner, a completed homestead application and a copy of the title must be filed in the County Assessors office to be eligible for the reduced tax.
Manufactured homes are taxed in one of two ways:
• If the owner of a manufactured home holds title to the land upon which it is situated, the home must be valued and assessed as an improvement to real property. The property will be appraised and classified according to its use on January 2 of the year prior to the year taxes are payable. Valuation and classification may be appealed through the Local Board of Review in the spring following the assessment date and taxes are payable by May 15 and October 15 of the following year. Homestead applications are due by December 15 of the year prior to the year taxes are payable for real property that is owned and occupied by December 1.
• If the owner of a manufactured home is a lessee of the land upon which it is situated, the home must be assessed as real property, but will be classified as personal property. It will be valued each year with reference to its value on January 2 of the year the tax is payable. The valuation may be appealed through the Local Board of Review in the spring following the assessment date and taxes are payable by August 31 and November 15 of the current year. Homestead applications are due by May 29 of the year taxes are payable.
A notice of the assessed value will be mailed to the homeowner at least ten days before the Local Board of review meets for both real and personal property taxes on manufactured homes. It will state the assessed value, classification, and date and time of the review meetings. Questions regarding the valuation or classification should be directed to Jody Anderson in the County Assessor’s Office at 320-679-6420.
Travel trailers are to be taxed as motor vehicles and issued number plates. However, travel trailers that are not conspicuously displaying current registration plates on the property tax assessment date are to be taxed as manufactured homes if occupied as human dwelling places. Travel trailers displaying current registration plates are not eligible for assessment.
Park trailers not used on the highway during any calendar year must be taxed as a manufactured home if occupied as a human dwelling place. If the trailer has been moved, or will be moved, a moving permit must be conspicuously displayed on the assessment date.
A permit to move a manufactured home is required from the Minnesota Department of Transportation if it will travel on any state road. Contact MN DOT at 800-657-3959 for an application. Likewise, if a county road will be utilized, the Kanabec County Highway Department requires a permit. They can be reached at 320-679-6300. City and township officials may require permits for the use of local roads also. Permits cannot be issued to persons other than manufactured home dealers for the movement of new units and the registrar of motor vehicles cannot issue a new certificate of title, until all personal or real property taxes have been paid and a statement from the County Treasurer is presented. The statement must be dated within 30 days of the contemplated move.
A storage shed, deck, or similar improvement constructed on property that is leased as a site for a manufactured home, park trailer, or a travel trailer is taxable as personal property to the lessee of the site if it is not owned by the owner of the site. In the case of property that is leased as a site for a travel trailer, the improvements are only taxable if the total estimated market value is more than $1000. The improvements are taxable as real estate if they are the property of the owner of the site. As a condition of permitting the owner of the manufactured home or trailer to construct improvements on the leased site, the owner of the site must obtain the permanent home address of the lessee and provide this to the assessor upon request.
If you have any questions regarding the assessment of manufactured homes or any other real property, contact the Kanabec County Assessor’s office at 320-679-6420.