This is a personal property tax exemption. It only applies to modular homes used as models by dealers. All real property will continue to be taxed as usual.
What is a modular home?
For the purposes of this exemption, a “modular home” is a building or structural unit that has been in whole or substantial part manufactured or constructed at an off-site location to be wholly or partially assembled on-site as a single family dwelling. Construction of the modular home must comply with applicable standards adopted in Minnesota Rules authorized under Minnesota Statutes, chapter 16B. A modular home does not include a structure subject to the requirements of the National Manufactured Home Construction and Safety Standards Act of 1974 or prefabricated buildings, as defined in Minnesota Statutes, section 327.31, subdivision 6.
A modular home is exempt from property taxes if:
- it is owned by a model home dealer and is located on land owned or leased by that dealer;
- it is a single-family model home;
- it is not available for sale and is used exclusively as a model;
- it is not permanently connected to any utilities except electricity; and
- it is situated on a temporary foundation.
How to Apply
Complete the application fully and legibly and return it to the Assessor's Office by February 1 for taxes payable that same year. You must complete a separate application for each modular model home that you wish to apply for the exemption.
You must attach a photo of the model home for which you are seeking exemption.
Time Period for Exemption
This exemption is allowable for up to five assessment years after the date it becomes located on the
property, provided that the modular home continues to meet all the criteria each year.
As this law was enacted in 2008, it will be effective for modular homes that are currently being used as models by dealers, provided they meet the above criteria (1-5).
Notify Assessor of Changes
The owner of a modular model home must notify the County Assessor within 60 days if it has been constructed or located on the property and must again notify the Assessor if the modular home ceases to meet any of the criteria. If more than one modular home is located on the property, the owner must notify the Assessor within 60 days for each of the models placed on the property.
Assessor May Request Additional Information
Upon written request by the Assessor, taxpayers must make available to the Assessor all necessary books and records relating to the ownership or use of property which can help verify whether or not the property qualifies for exemption.
How We Use the Information
Your business ID number is private information, but it may be disclosed to the County Assessor, County Attorney, the Commissioner of Revenue or other federal, state or local taxing authorities to verify your eligibility for exemption. All other information is public.
Making false statements on this application is against the law. Minnesota Statutes, section 609.41, states that anyone giving false information in order to avoid or reduce their tax obligations is subject to a fine of up to $3,000 and/or up to one year in prison.