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Posts Tagged ‘sales tax’

Officials – Tax Break sought by Clayton Homes

October 27th, 2016 Comments off
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A Clayton home in Chino Valley. Credit: Clayton Homes.

Management of Clayton Homes in Chino Valley, Arizona has asked the town council for a break on sales taxes, stating that what is now the highest rate in the region is hurting business.

My own (company’s) sister stores are my biggest competitors,” said Dave Rowe, general manager of Chino Valley’s Clayton Homes. “Everyone’s shopping the Internet these days. My own stores are using the tax rate against me.

Clayton Homes also has locations in Mesa and Glendale, and is a vertically integrated company.

As many Daily Business News readers know, the parent company is the nation’s largest producer and retailer of manufactured housing in the United States.

 

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Dave Rowe. Credit: Clayton Homes.

According to CVR News, Chino Valley receives almost all of its funding from a 4 percent sales tax, which is the highest in Yavapai County. Rowe asked the Council to consider lowering it to 3 or 2 percent, just for manufactured homes.

Clayton Homes is reportedly the main manufactured home retail business in Chino Valley, since it bought out Busbee Homes a couple of years ago.

The Mesa and Glendale locations are actually selling more homes up here because it’s cheaper than we can up here,” said Rowe.

Rowe also told the council that if they continued to lose business to other Clayton stores, then it would be hard for him to justify staying open.

We’re not bringing this up, using this as a threatening tactic,” said Rowe.

But my corporation is sitting there going, ‘Our Glendale location, and our Mesa location are selling into Chino Valley and surrounding areas, then why do we need a location there?

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Chino Valley (in red). Credit: Google.

Rowe was challenged by the council on this point.

If you’re overhead costs are cheaper than either Mesa or Glendale, couldn’t you offer homes for less than they could?” asked councilmember Lon Tuner. “That could put you on more equal footing.

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Lon Turner. Credit: ChinoAZ.net.

CVR News reports that Mesa has a 1.75 percent sales tax rate, Glendale has a 2.90 percent sales tax rate. Both are considerably lower than Chino Valley’s 4 percent.

Clayton has one other competitor in the region, Best Buy Homes located in Prescott Valley. Rowe told the council that with the backing of Berkshire Hathaway, Best Buy Homes is not a big competitor.

Best Buy is not really my competition, my own stores down in the Phoenix area are, and they’re using the sales tax against us,” said Rowe.

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Joe Duffy. Credit: ChinoAZ.net.

Town finance director Joe Duffy told the council that the town currently offers a lower sales tax rate to one other industry. Rental properties.

Duffy told the council that it is likely that by lowering the sales tax rate for manufactured homes, the town could recoup some of the lower revenue if Clayton Homes increases the number of homes it sells.

We collected $93,000 in sales tax revenue from manufactured homes in 2014, and $111,000 in 2015,” said Duffy. “If the Council lowered the rate to 3 percent, it would mean about $27,750 less in revenue this year based on current estimates,” said Duffy.

Clayton Homes is part of Berkshire-Hathaway, one of the industry-connected stocks monitored each business day, here on the, the Daily Business News.  For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Sales Tax Rescinded on used Manufactured Homes

June 24th, 2015 Comments off

mh refurbished burlington nc  credit  thetimesnewsA Missouri Supreme Court decision from two years ago that made the sale of used manufactured homes (MH) taxable has been reversed and signed into law by Governor Jay Nixon. Introduced by Rep. Sandy Crawford as HB 111, the sale of used MH had not been taxable for the 20 years prior to the court ruling, according to buffaloreflex.

Noting that the change will allow more Missourians to become homeowners, Crawford said, Manufactured homes represent an affordable option for many low-income Missourians and seniors, but the sales tax could be enough to keep some from becoming homeowners. By putting HB 111 into law we can prevent this tax on Missourians who can least afford it, and put more folks in position to obtain affordable, quality housing.

MHProNews understands with Gov. Nixon’s signature, the bill becomes law Aug. 28. ##

(Photo credit:thetimesnews–refurbished manufactured home)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Legislature may Block Sales Tax on Manufactured Homes

April 18th, 2014 Comments off

The Missouri state department of revenue is set to start collecting sales tax on the sale of manufactured homes due to a recent state supreme court ruling. According to missourinet.com, manufactured homes (MH) are considered personal property, which is subject to sales tax, much as an automobile. There are 217,600 MH in the state, about eight percent of the housing stock, MHProNews.com has learned. State Senator Mike Cunningham intends to block that ruling, saying MH are important as starter homes and for retirees looking to downsize. The senate is preparing to send a bill to the state house that could block the ruling. As MHProNews.com reported Dec. 27, 2013, North Carolina increased the sales tax on manufactured and modular homes Jan. 1, 2014. ##

(Photo credit: Next Step homes)

New Sales Tax will Raise the Price of Manufactured, Modular Homes

December 10th, 2013 Comments off

MHProNews has learned from blueridgenow.com as of Jan. 1, 2014 that the North Carolina sales tax on manufactured homes will increase from two percent to the general rate of 4.75 percent, and on modular homes from 2.5 percent to 4.75 percent. Neil Carter, owner of Carter’s Homes in Fletcher says a $50,000 manufactured home will now cost $2,700 more, which could be a deterrent to lower-income shoppers. “It does hurt the affordable housing side, but we have other regulations that make it cost more, too,” he said, referring to rules requiring a paved driveway and grassy lawn before homes can be sited. The increase will also apply to entertainment and educational venues, even non-profits.

(Photo credit: Pine Grove Manufactured Homes)

Sales Tax on Manufactured Homes Unchanged

October 22nd, 2013 Comments off

The Virginia Manufactured and Modular Housing Association (VAMMHA) reports to MHProNews that the Virginia Titling Tax increased on automobiles but remained at three percent on sales of manufactured homes. In Virginia, as in many states, manufactured homes continue to be classified under motor vehicle laws in a throw back to the days of factory-built homes on wheels that were licensed as vehicles. The sales tax on motor vehicles increased to four percent as of July 1, 2013.

(Tax table credit: VAMMHA)

Taxes Rise on Manufactured and Modular Homes

June 14th, 2013 Comments off

MHProNews has learned from charlotteobserver the North Carolina state senate has approved a tax reform plan on second reading with the third and final reading—and likely approval– set for Tue., June 18. The Republican-dominated senate bill includes a tax hike for factory-built homes. Under the new measure the sales tax on manufactured homes would rise from 2 percent with a $300 cap to 4.75 percent with no cap. For modular homes the increase would go from 2.5 percent to 4.75%. Democrats contend this will hurt small businesses. The measure will move to the House for reconciliation with its bill after the final vote.

(Photo credit: thetimesnews–refurbished manufactured home in Burlington, NC)

MH Should Assess Less than Site-Built

June 28th, 2012 Comments off

From Canandaigua, New York writing in MPNnow, Don Semifero offers percentages of differences between a site-built and a manufactured home to make his case to the Victor, NY assessor that they should be assessed at different rates. He ticks off the percentages MH owners lose: 2-3 percent for not owning the land and thereby losing upgrade value; another 2-3 percent for not having the storage of an attic or basement; five percent sales tax on MH; the difference between a mortgage and a chattel loan in payments and interest rates, ten percent; MH owner cannot get a home equity loan to upgrade residence (minus five percent), nor claim taxes on income tax return, 7-10%; and MH depreciates like automobiles. MHProNews has learned he suggests an assessment rate of 60-65% of market value.

(Photo credit: TriStar Estates)

Gov. Extends Executive Order

June 15th, 2012 Comments off

StateJournal reports from West Virginia Governor Earl Ray Tomblin has extended the executive order that suspends the consumer sales service tax and use tax on manufactured and modular housing purchases, as well as on certain building materials, in the wake of the flooding and wind damage that hit the state in March. Taxpayers in 11 counties can take advantage of the extension through July 14. “Families and businesses continue to restore what Mother Nature quickly and swiftly destroyed,” Tomblin said. “With many West Virginians just now receiving insurance claim assistance, reconstruction efforts can be substantially furthered by continuing to waive the sales tax on certain building materials and supplies needed to restore life to normalcy.”

(Photo credit: WSAZ-TV)

Assessment on MH Unbalanced, says Resident

May 4th, 2012 Comments off

In a letter to MPNnow, a resident of Gypsum Mills Estates in Victor, New York just south of Rochester states the 520 senior homeowners in the MHC are being unduly taxed by the town assessor. Stephen G. Poyzer says property assessments have increased an average of 24 percent. Noting that manufactured housing depreciates at a rate similar to an automobile, he says individual assessments rose $5,000 to almost $40,000 the past two years. MHProNews has learned a letter from the assessor says the 2011 tax rate was 100%, and this year’s will be 100% after the increase. Writes Poyzer: “It does not take a mathematics genius to see that an average 24 percent increase added to a 100 percent assessment does not equal 100 percent but 124 percent on properties that lose value every year.” Noting manufactured housing owners pay sales tax at time of purchase and personal property tax, he says the government is trying to extract real property tax from MH owners’ personal property, and that amounts to double taxation.

(Photo credit: Wikipedia Commons–Old Two Pan Balance Scale)