Tax is imposed on the use of "manufactured housing" in
Iowa.
(1)
Definition.
"Manufactured housing" means the same as
defined in Iowa Code section
321.1.
(2)
Tax treatment of manufactured
housing that is similar to the tax treatment of mobile homes.
a. Manufactured housing is subject to Iowa
use tax to the extent provided in Iowa Code section
423.6(10) and
shall be paid as provided in Iowa Code section
423.26A.
b. The use of manufactured housing previously
subject to tax and upon which the tax has been paid is exempt from further
tax.
c. The taxation of
manufactured housing that is sold in the form of tangible personal property is
similar to the taxation of mobile homes that are sold in the form of tangible
personal property. More information is contained in rule
701-282.7
(423).
(3)
Taxable use of manufactured housing in the form of real
estate. Unlike mobile homes, the use of which can be taxed only when
the homes are in the form of tangible personal property, under certain
conditions, the use of manufactured housing in the form of real estate can be
subject to tax. If a developer has placed a manufactured home on a foundation
in a lot in Iowa and hooked up the necessary utilities and completed the
necessary landscaping to convert the home from tangible personal property to
realty, the sale of the manufactured home to a user is a taxable use of the
home on the user's part.
EXAMPLE: Company A buys land with enough space for 100 lots
for manufactured housing and for the streets necessary to provide access to the
lots. Company A then buys 100 manufactured houses. It lawfully buys these
houses exempt from use tax based on the assertion that they have been purchased
for subsequent resale. Company A then develops the land, installing water,
sewer and electric lines, placing the manufactured homes on foundations, and
otherwise taking steps to convert the homes from tangible personal property to
real estate.
Company A then sells the homes on the lots to various
customers. Each purchase of a home by a customer is a taxable use of the home
on that customer's part, and the customer is obligated to pay the appropriate
county treasurer the amount of Iowa use tax due.
a. Installed purchase price. When tax is due
on the use of manufactured housing in the form of real estate, the basis for
computing the tax is the "installed purchase price" of the manufactured
housing. Installed purchase price means the same as defined in Iowa Code
section
423.1(23). Use
tax is due on 20 percent of the amount of the installed purchase price.
(1) Included in the installed purchase price.
Included within the meaning of "installed purchase price" are amounts charged
to a buyer of a manufactured home to build and install a foundation on which to
place a home; amounts charged to hook up electric, water, gas, sewer system,
and other lines for necessary utilities; amounts charged to sell and install
"skirting" as described in subrule 282.7(1); amounts charged to build and
install any steps for a door; and amounts separately charged for any appliances
or other items that become a part of the housing after installation, e.g.,
dishwashers and whirlpool tubs.
(2)
Exclusions from installed purchase price. Excluded from the meaning of
"installed purchase price" is any amount charged for the purchase of land on
which to place a manufactured house; any amount charged for landscaping in
connection with the installation of a manufactured house; any amount charged to
build and install any deck or similar appurtenance to a manufactured home; and
any amounts charged for the sale of furniture or appliances that remain
tangible personal property after installation, e.g., furniture, room air
conditioners, and refrigerators. This list of inclusions and exclusions is not
exclusive. Furthermore, the purchase of furniture or appliances that remain
tangible personal property is subject to Iowa sales or use
tax.
b. The exemption in
favor of taxable services performed on or in connection with new construction
as described in Iowa Code section
423.3(37) is
not applicable when calculating the amount of any installed purchase price.
This rule is intended to implement Iowa Code section
423.6(10).
