Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
580.0274 Mobile Homes Installed as a Residence. A request was made to provide an analysis of the essential difference between Revenue and Taxation Code sections 6012.8 and 6012.9 as the sections pertain to subdivision (b)(3)(B)(1) of Sales and Use Tax Regulation 1610.2.
Section 6012.8 provides generally that the retailer of a new mobile home is a retailer/consumer if the mobile home is sold for installation on a foundation system pursuant to Health and Safety Code section 18551 and is thereafter subject to property taxation.
Under the provision of Health and Safety Code section 18551, the foundation system is such that once the mobile home is installed, it is deemed an improvement to real property. For sales tax purposes, a person installing mobile home accessories such as window awnings, skirting and air-conditioning units on such mobile home is a construction contractor. The application of tax is provided by Sales and Use Tax Regulation 1521 and Regulation 1610.2(d).
Section 6012.9 provides generally that the retailer of a new mobile home is a retailer/consumer if it is sold for installation pursuant to Health and Safety Code section 18613 and is thereafter subject to property taxation.
Under the provisions of Health and Safety Code section 18613, the foundation consists of bearing support structures designed to meet certain requirements. A mobile home so installed still retains its identity as a tangible personal property and is the more common installation in mobile home parks.
For sales tax purposes, a person installing mobile home accessories such as window awning, skirting, and air conditioning units on such mobile homes is the retailer of tangible personal property unless the accessories are directly affixed to realty. (Sales and Use Tax Regulation 1610.2(b)(3)(B)(1), 3rd paragraph.) 5/31/91.