New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 544 - Mobile Homes And Factory Manufactured Homes
Section 544.3 - Sales of mobile homes and factory manufactured homes
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 544.3
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, §§ 1101 (b)(4)(i), 1105(a), 1111(f), 1115(a)(23)
(a) Sales of mobile homes.
(1) Sales of new mobile homes by
manufacturers to dealers, and sales to contractors, subcontractors or repairmen
who in such capacity install a mobile home on real property are not subject to
tax provided the purchaser presents a properly completed resale certificate,
where the purchaser is a dealer, or a properly completed contractor exempt
purchase certificate, where the purchaser is a contractor, subcontractor or
repairman.
(2) The retail sales tax
imposed under section
1105(a) of the Tax Law and
the compensating use tax imposed under section
1110 of the Tax Law, with respect to new
mobile homes, is computed on 70 percent of the receipts or consideration given
by the purchaser or user. The dealer, or contractor, subcontractor or repairman
selling a new mobile home must collect the retail sales tax from the purchaser.
(i) The "70 percent rule" applies only to the
selling price allocable to a new mobile home including any tangible personal
property, permanently incorporated as component parts by the manufacturer, and
is not applicable to furniture, fixtures, furnishings, appliances, attachments
or similar tangible personal property not permanently incorporated as component
parts of the mobile home at the time of manufacture.
(ii) Items of tangible personal property
included in a mobile home by a manufacturer or dealer which are not permanently
incorporated as component parts, such as furniture, draperies and freestanding
appliances, are taxable to the purchaser at 100 percent of their selling price.
Any invoice given to the purchaser must separately list each item of tangible personal property (not permanently incorporated as a component part at the time of manufacture) sold with the mobile home along with its applicable selling price. A copy should be retained by the dealer for his records.
Example 1:
A customer purchased a new mobile home from a dealer in a 7 percent taxing jurisdiction. The mobile home contained tangible personal property permanently incorporated as component parts by the manufacturer such as a water heater, a furnace, sinks, cabinets, and counter tops. The unit also contained a range, an oven, a refrigerator, a dishwasher and other furnishings which were not incorporated as component parts at the time of manufacture and are thus taxed as tangible personal property.
The invoice given to the customer showed:
| A total retail price of $25,000 for mobile home including separately listed items of tangible personal property totaling $5,000 | ||
| Portion of total selling price to which the 70 percent rule is applied: | ||
| Total retail price of mobile home | $25,000 | |
| Less: Price of items of tangible personal property | -$ 5,000 | |
| Portion of selling price to which the 70 percent rule applies | $20,000 | |
| Computation of taxable portion of retail selling price of mobile home (excluding items of tangible personal property): | ||
| Portion of retail selling price to which the "70 percent rule" applies | $20,000 | |
| Multiply by 70 percent | × .70 | |
| Taxable portion of retail selling price (excluding items of tangible personal property) | $14,000 | |
| Computation of tax on taxable portion of mobile home (excluding items of tangible personal property): | ||
| Taxable portion of retail selling price per above | $14,000 | |
| Multiply by tax rate of 7 percent | × .07 | |
| Tax on taxable portion of mobile home (excluding items of tangible personal property) | $980 | |
| Computation of tax on items of tangible personal property: | ||
| Price of the tangible personal property | $5,000 | |
| Multiply by tax rate of 7 percent | × .07 | |
| Tax on the tangible personal property | $ 350 | |
| Computation of total tax on mobile home: | ||
| Tax on taxable portion of mobile home (excluding items of tangible personal property, plus | $ 980 | |
| Tax on the tangible personal property | + 350 | |
| Total tax on mobile home | $1,330 | |
(3) When a mobile home is accepted in trade
as a part payment on a new mobile home, the reduction in the amount of the
receipt subject to tax attributable to the trade-in must first be applied to
the total selling price of the new mobile home including all items of tangible
personal property. The amount remaining is then apportioned between (i) the
price of the new mobile home excluding the tangible personal property not
permanently incorporated as a component part, and (ii) the selling price of
such tangible personal property not incorporated as a component part of the
mobile home, in the same proportion each such price bears to the total selling
price.
Cross-reference:
See section 526.5(f) with respect to property accepted in trade.
Example 2:
Assume, as in example 1 a new mobile home is sold for $25,000 (including separately listed items of tangible personal property totaling $5,000), except that the purchaser was given a trade-in allowance of $5,200.
| The portion that each element of the selling price is to the total selling price is computed as follows: | ||
| Amount | Percent of Total | |
| Selling price excluding tangible | $20,000 | |
| personal property | ÷ | |
| Divide by total selling price | $25,000 × 100% = | 80% |
| Selling price of items of | $5,000 | |
| tangible personal property | ÷ | |
| $25,000 × 100% = | 20% | |
| Total | 100% | |
| The amount of trade-in attributable to each element of the total selling price is then computed as follows: | |||
| Element of Total Selling Price | Percent of Each Element to Total | Trade-in Amount | Proportion of Trade-in Attributable to Each Element |
| Selling price excluding tangible personal property | 80% × | $5,200 = | $4,160 |
| Items of tangible personal property | 20% × | $5,200 = | $1,040 |
| Total | 100% | $5,200 | |
| The taxable portion of the selling price of the mobile home excluding tangible personal property not permanently incorporated as a component part at the time of manufacture is then computed: | ||
| Amount | ||
| Total retail price of mobile home | $25,000 | |
| Less: Price of tangible personal property | -$ 5,000 | |
| Price excluding tangible personal property | $20,000 | |
| Less: Proportionate amount of trade-in | -$ 4,160 | |
| Portion of total selling price to which the "70 percent rule" applies | $15,840 | |
| Portion taxable and tax due thereon is then determined: | ||
| Portion taxable | ||
| $15,840 × 70 = | $11,088 | |
| Multiply by tax rate | ×.07 | |
| Applicable tax | $776.16 | |
| Items of tangible personal property | $5,000 | |
| Less: Proportionate trade-in amount | $1,040 | |
| Net | $3,960 | |
| Multiply by applicable tax rate | .07 | $277.20 |
| Total tax due | $1,053.36 | |
(4)
The sale of a used mobile home is exempt from the sales and compensating use
tax. Items of tangible personal property included in the sale and which were
not permanently incorporated as a component part of the mobile home at the time
of manufacture are subject to the sales and compensating use tax.
(b) Sales of factory manufactured homes.
(1) The sale of a
factory manufactured home which has not been installed on real property as a
capital improvement is subject to the sales and compensating use taxes as the
sale of tangible personal property. Upon a retail sale, tax is computed on the
total sales price. The "70 percent rule" described in subparagraph (a)(2)(i) of
this section does not apply to the sale or use of a factory manufactured
home.
(2) The sale of a factory
manufactured home to a contractor, subcontractor or repairman to be installed
as a capital improvement by such contractor, subcontractor or repairman is
subject to sales and compensating use tax as a retail sale of tangible personal
property.
Cross-reference:
See contractors' regulation, Part 541 of this Title.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
