1. (1) The charge for installing a mobile home on real property is excluded from the sales and use taxes. However, tangible personal property purchased and used for the installation of a mobile home is subject to the sales and use tax. Such tangible personal property includes but is not limited to: concrete blocks, water and sewer pipes, steps, wind anchors, electric cables, oil tanks and stands.

   1. (i) Where a contractor, subcontractor or repairman in installing a mobile home uses items of tangible personal property belonging to the mobile homeowner, the installation charge (labor) is not subject to the sales and use tax.
   2. (ii) Where a contractor, subcontractor or repairman installing a mobile home, uses items of tangible personal property purchased by him for such installation, the charge to the owner of the mobile home for the service of installing the mobile home (including materials used in such installation and transferred to the owner in conjunction with the performance of the service) is not subject to sales and use tax. The contractor, subcontractor or repairman must pay tax on the materials at the time of purchase.

   3. (iii) Where a dealer also acts as a contractor, subcontractor or repairman in the installation of a mobile home, its charge to the purchaser of the mobile home for such installation (including materials used in such installation and transferred to the owner in conjunction with the performance of the service) is not subject to sales and use tax. However, the dealer is liable for payment of use tax on all materials it uses in such installation.

      (2)

   4. (i) The charge to a purchaser for installing tangible personal property on a mobile home or maintaining, servicing or repairing a mobile home (including labor and materials), is subject to the sales and use tax.

      1. (a) Where a contractor, subcontractor or repairman installs items of tangible personal property belonging to the mobile home owner, the installation charge (labor) is subject to the sales and use tax.
      2. (b) Where a contractor, subcontractor or repairman installs items of tangible personal property purchased by him for such installation, the charge to the owner of the mobile home for both the labor and materials is subject to the sales and use tax. The contractor, subcontractor or repairman must pay tax on the materials at the time of purchase. Upon the installation of such materials, the contractor, subcontractor or repairman may apply for a refund or claim a credit on the contractor's, subcontractor's or repairman's next sales tax return for such tax paid in respect of any property so transferred to the owner of the mobile home. Alternatively, a contractor, subcontractor or repairman registered as a vendor who is under contract to maintain, service or otherwise repair a mobile home may purchase materials specifically for use in performing such contract without payment of tax by issuing a properly completed contractor exempt purchase certificate. Contractors, subcontractors or repairmen performing taxable services are vendors required to register pursuant to section 1134 of the Tax Law.
      3. (c) Where a dealer also acts as a contractor, subcontractor or repairman in the installation of tangible personal property for a mobile homeowner, its total charge for such services (labor and materials) is subject to sales and use tax. However, the dealer may purchase tangible personal property used in such installations without payment of tax by issuing a properly completed resale certificate. Alternatively, a dealer who so acts may pay tax on such tangible personal property at the time of purchase and, upon the installation of such property, the dealer may apply for a refund or claim a credit on the dealer's next sales tax return for such tax paid in respect of any property so transferred to the owner of the mobile home.

2. (3) Regardless of the nature of its installation on real property, a mobile home does not constitute an addition or capital improvement to real property, property or land for purposes of the sales and use tax imposed by article 28 and pursuant to the authority of article 29 of the Tax Law. Thus, excluding the service of installing a mobile home onto real property, the receipts including all charges for both labor and materials from the service of installing tangible personal property in or onto a mobile home and the services of maintaining, servicing or repairing a mobile home are subject to the sales and use tax. Example: Cross-reference:

   Example:

   Installing a new roof on a mobile home; repairing or replacing a furnace in a mobile home; repairing broken windows and faulty faucets in a mobile home; and painting interior or exterior walls of a mobile home are examples of taxable services. The total charge (labor and materials) for such services is subject to tax.

   Cross-reference:

   For maintaining, installing, repairing and servicing tangible personal property, see sections 527.5 and 541.5 of this Title. For refunds and credits, see section 534.5 of this Title. For contractors' regulations, see Part 541 of this Title.

   (b) Factory manufactured homes.

3. (1) If the installation of a factory manufactured home results in a capital improvement, charges for the installation of such factory manufactured home are not subject to the sales tax, and the installer is liable for the sales and use tax on any materials used or consumed in such installation.

4. (2) If a factory manufactured home is installed upon real property under such circumstances that the installation does not constitute a capital improvement, the charges for such installation including labor and materials (including the charge for the factory manufactured home if applicable) is subject to tax. In such event, a contractor may claim a refund or credit of the sales and compensating use tax it paid upon its purchase of those materials which were subsequently resold. Cross-references:

   Cross-references:

   For definition of capital improvement, see section 527.7(a)(3) and section 541.2(g)(1) of this Title.

   For special rules concerning the compensation use tax due on factory-manufactured homes installed by the manufacturer, see section 541.11(c)(2) and (3) of this Title.

Tax Law, § 1105(c)(3)

(a) Mobile homes.