Tax Type
Retail Sales and Use Tax
Description
Mobile homes; Set up components.
Topic
Taxability of Persons and Transactions
Date Issued
05-22-1998
May 22, 1998
Dear**************:
Based on information recently received, it has come to my attention that you are seeking further clarification of the application of the retail sales and use tax to concrete footers addressed by Public Document (P.D.) 91-125 (7/19/91, copy enclosed).
In the above cited ruling, the department established its current policy in regard to ``set-up' components used in the installation of mobile homes subject to the motor vehicle sales and use tax. Effective July 1, 1991, this ruling establishes that all set-up components, including concrete blocks, concrete footers, etc., which are attached or purchased at the time a mobile home is sold and become an integral part of a mobile home and included as part of the sales price of the mobile home are to be taxed at the motor vehicle sales and use tax rate of 3%.
This ruling made no distinction between mobile homes set up with a temporary type of foundation and those set up with permanent foundations. However, it is clear that footings or foundations on which piers, concrete blocks or other stabilizing devices are mounted are integral support elements which are necessary in setting up a mobile home and rendering the manufactured structure fit for use on the customer's home site.
Accordingly, concrete footers which are prefabricated or poured on site will not be subject to the retail sales and use tax, provided the charge for such footings are included as part of the sales price of the mobile home and taxed at the motor vehicle sales and use tax rate of 3%. Separately stated charges for installation labor are not taxable and should not to be included in the sales price of the mobile home.
However, septic tanks, wells, driveways, patios, walkways, decks, outdoor pole lighting, and entrance/exit stairs or steps are not considered set-up components for a mobile home. Accordingly, the charge for furnishing and/or installing such items are not subject to the motor vehicle sales and use tax and should not be included in the purchase price of the mobile home. Rather, when a mobile home dealer furnishes and installs any of these items, it will be deemed a contractor as defined in Title 23 of the Virginia Administrative Code (VAC) 10-210-410 (copy enclosed) with respect to these items. When engaged as a contractor, a mobile home dealer is liable for the retail sales and use tax on the cost price of items which it affixes to the realty. However, separately stated charges to the customer for furnishing and installing these items are not taxable.
If you have any questions, please call ***** of my tax policy staff at *****.
Dear**************:
Based on information recently received, it has come to my attention that you are seeking further clarification of the application of the retail sales and use tax to concrete footers addressed by Public Document (P.D.) 91-125 (7/19/91, copy enclosed).
In the above cited ruling, the department established its current policy in regard to ``set-up' components used in the installation of mobile homes subject to the motor vehicle sales and use tax. Effective July 1, 1991, this ruling establishes that all set-up components, including concrete blocks, concrete footers, etc., which are attached or purchased at the time a mobile home is sold and become an integral part of a mobile home and included as part of the sales price of the mobile home are to be taxed at the motor vehicle sales and use tax rate of 3%.
This ruling made no distinction between mobile homes set up with a temporary type of foundation and those set up with permanent foundations. However, it is clear that footings or foundations on which piers, concrete blocks or other stabilizing devices are mounted are integral support elements which are necessary in setting up a mobile home and rendering the manufactured structure fit for use on the customer's home site.
Accordingly, concrete footers which are prefabricated or poured on site will not be subject to the retail sales and use tax, provided the charge for such footings are included as part of the sales price of the mobile home and taxed at the motor vehicle sales and use tax rate of 3%. Separately stated charges for installation labor are not taxable and should not to be included in the sales price of the mobile home.
However, septic tanks, wells, driveways, patios, walkways, decks, outdoor pole lighting, and entrance/exit stairs or steps are not considered set-up components for a mobile home. Accordingly, the charge for furnishing and/or installing such items are not subject to the motor vehicle sales and use tax and should not be included in the purchase price of the mobile home. Rather, when a mobile home dealer furnishes and installs any of these items, it will be deemed a contractor as defined in Title 23 of the Virginia Administrative Code (VAC) 10-210-410 (copy enclosed) with respect to these items. When engaged as a contractor, a mobile home dealer is liable for the retail sales and use tax on the cost price of items which it affixes to the realty. However, separately stated charges to the customer for furnishing and installing these items are not taxable.
If you have any questions, please call ***** of my tax policy staff at *****.
Rulings of the Tax Commissioner