N.J. Admin. Code § 18:24-7.19

Current through Register Vol. 56, No. 7, April 1, 2024

Section 18:24-7.19 - Taxation of manufactured and mobile homes

(a) This section is intended to clarify the taxation of manufactured or mobile homes under 54:4-1.2 et seq. This section does not apply to the sale of modular buildings because they are not on a permanent chassis.

1. For the purposes of this section, the following term shall have the following meaning:

i. "Trailer or housetrailer" means a recreational vehicle, travel trailer, camper, or other transportable, temporary dwelling unit, with or without its own motor power, designed and constructed for travel and recreational purposes to be installed on a nonpermanent foundation if installation is required.

(b) The first sale of a new manufactured or mobile home is subject to sales tax based upon the manufacturer's invoice price pursuant to 54:4-1.7.

1. The sale of a new manufactured or mobile home by the manufacturer or other seller to a contractor, subcontractor, homeowner, or other ultimate consumer is a retail sale and the tax must be collected from the purchaser at the time of sale and remitted to the Division of Taxation.

2. Where the manufacturer or other seller sells a new manufactured home to a homeowner or other ultimate consumer and agrees to install the home for the purchaser, the manufacturer or other seller is acting as a contractor and the tax is due directly from such person. Sales tax is not collected from the purchaser.

i. Where a new manufactured or mobile home is purchased from a manufacturer or other seller who is not a registered seller in New Jersey for sales tax purposes, the purchaser must pay the tax directly to the Division; provided, however, that where the manufacturer's invoice price cannot be ascertained, the tax is based on the purchase price.

3. The sale of a new manufactured or mobile home by the manufacturer to a dealer is a sale for resale, and in the subsequent resale the tax applies to the manufacturer's invoice price as follows:

i. Where the dealer sells a new manufactured or mobile home to a contractor, subcontractor, homeowner, or other ultimate consumer, the sales tax must be collected from the purchaser by the dealer and remitted to the Division of Taxation.

Example: Dealer X sells a manufactured home to Y for $ 30,000. The manufacturer's invoice price, including a charge for certain home furnishings, was $ 19,500. The cost of freight to Dealer X's place of business was $ 500.00. The sales price is $ 20,000, and the sales tax is stated to and collected from the purchaser at the applicable rate.

ii. Where the dealer sells a new manufactured or mobile home to a homeowner or other ultimate consumer and agrees to install the home for the purchaser, the dealer is acting as a contractor and the tax is due directly from the dealer. Sales tax is not collected from the purchaser.

Example: Dealer X sells a new manufactured home to Y and agrees to install the unit in a mobile home park. The manufacturer's invoice price, including a charge for certain home furnishings, is $ 19,500. The cost of freight to Dealer X's place of business is $ 500.00. Dealer X is liable for the tax on $ 20,000. No tax on the manufactured home is stated to or collected from the purchaser.

iii. The sale of a new manufactured home by a dealer or other seller to a dealer is a sale for resale and the acquiring dealer may issue a fully completed Resale Certificate (Form ST-3) or other approved form; however, sales tax is due at the time of retail sale on the price paid by the acquiring dealer whenever the manufacturer's invoice price cannot be ascertained.

(c) The sale of dealer-installed accessories, options, components, or other taxable tangible personal property for either a new or used manufactured or mobile home is subject to sales tax based upon the retail sales price, whether or not the dealer also agrees to install the home for his or her customer; provided, however, that where the dealer does agree to install a home for his or her customer, the purchase of the construction materials, supplies, and equipment is subject to tax as provided by (e) below.

1. Examples of dealer-installed accessories, options, components, or other taxable tangible personal property include, but are not limited to:

i. Furniture;

ii. Fixtures;

iii. Furnishings;

iv. Appliances;

v. Attachments;

vi. Air conditioning units;

vii. Sinks;

viii. Cabinets;

ix. Counter tops;

x. Exhaust hoods; and

xi. Water heaters.

2. A Certificate of Exempt Capital Improvement (Form ST-8) or other approved form cannot be issued by the purchaser in connection with the purchase of dealer-installed options, accessories, or components.

(d) The sale of a used manufactured or mobile home by any person, including a dealer, is not subject to sales and use tax, whether or not the home is located in a mobile home park.

(e) The permanent installation of a new or used manufactured or mobile home results in an exempt capital improvement to real property, whether or not the home is installed in a mobile home park. (See 18:24-5.7 )

1. Services performed by a contractor, subcontractor, manufacturer, or other seller or dealer acting as a contractor or subcontractor and rendered in connection with the permanent installation of a new or used manufactured or mobile home for the purchaser, are exempt from sales tax; provided, however, that a fully completed Certificate of Exempt Capital Improvement (Form ST-8) or other approved form has been obtained from the purchaser and retained by the contractor or dealer for his or her records.

2. Sales of construction materials, supplies, construction equipment, or taxable services to a contractor or subcontractor, manufacturer, or other seller or a dealer acting as a contractor or subcontractor, for use in the installation of a new or used manufactured or mobile home, are subject to sales or use tax as provided by N.J.A.C. 18:24-5.

(f) The sale of a new or used trailer or housetrailer is subject to sales tax in the same manner as other motor vehicles in this subchapter.

(g) A certificate of ownership for a new or used manufactured or mobile home will not be issued by the Motor Vehicle Commission except upon proof, in a form approved by the Division of Taxation and the Motor Vehicle Commission, that any tax due on the sale or use of a new manufactured or mobile home has been paid or that no such tax is due.

(h) The rental or lease of a manufactured or mobile home that has already been permanently installed in a mobile park is not subject to sales tax.

N.J. Admin. Code § 18:24-7.19

Amended by 48 N.J.R. 824(a), effective 5/16/2016

Amended by 50 N.J.R. 907(a), effective 2/20/2018