N.Y. Comp. Codes R. & Regs. tit. 20, § 544.3
(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.
(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: Example 2:
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.
(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.
Tax Law, §§ 1101 (b)(4)(i), 1105(a), 1111(f), 1115(a)(23)
(a) Sales of mobile homes.