Current through Register Vol. 56, No. 18, September 16, 2024
(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.
