ArcaMax

Dear Monty: Is it legal to double your taxes on a mobile home where you don't own the land? Doesn't the park pay taxes on the land? The assessor values my mobile home at $69,700, but I only paid $9,500 for it!

Monty's Answer: Property tax assessments on mobile homes can increase like a standard frame home with a full basement, even when you don't own the underlying land. This assessment is legal, though the specific regulations vary by state and municipality. The fact that the park owner pays taxes on the land is separate from your obligation to pay taxes on the structure itself.

The $69,700 assessed value versus your $9,500 purchase price highlights a common confusion in property taxation. What likely happened is that your assessment went up 100%, and your actual tax bill will be about the same. The tax bill may go up or down. The taxing authority establishes the annual budget to operate the city, and when the amount of money necessary to fund the budget is known, they calculate the mill rate. Substantial adjustments occur when there is a general reassessment, and almost every property will see an increase in assessed valuation.

It is unclear how long you have owned the mobile home, but they often increase in value. A mobile home can also go down in value. Mobile homes built before June 15, 1976, are not eligible for FHA financing. This ineligibility is because building requirements set forth by the Department of Housing and Urban Development have changed since then. If a buyer is paying cash, this is not a concern, except you will need to disclose this fact to avoid potential litigation in the future.

The assessed value is not necessarily tied to what you paid for the property. Assessors use various methods to determine value. These methods include a) comparable sales of similar mobile homes in your area, b) the cost to replace the mobile home minus depreciation, improvements or modifications, c) overall condition and age and d) local market conditions.

Your purchase price of $9,500 may have been below market value for various reasons -- perhaps it was a distressed sale, you got an exceptional deal or market conditions have changed significantly since your purchase. The assessor must value all properties uniformly, regardless of individual purchase prices.

If you believe the assessment is incorrect, you can appeal it. Here's what you should do:

First, request the documentation showing how the assessor arrived at the $69,700 value. Look for any errors in the basic facts about your mobile home: square footage, number of bedrooms/bathrooms, condition, etc. Second, gather evidence supporting your position, including your purchase documentation, recent sales prices of similar mobile homes in your park or nearby parks, photos showing condition issues and any professional appraisals. Third, file a formal appeal with your local Board of Review. There are typically strict deadlines for filing appeals, so when you receive your tax notice, act promptly. Check with your local tax assessor's office about available exemptions, deferrals or assistance programs for mobile homeowners.

If you need help navigating this process, consider consulting with a property tax professional with experience with mobile home assessments. While their services have a cost, it might be worthwhile if they can help achieve a significant reduction in your assessment.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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