What is chattel and why do we care?
When inspection & preservation services are performed on manufactured homes, providers should determine if they are chattel (personal tangible property) or real property. Why? Ordinances, decals, sales/use tax, etc., may vary by location & collateral designation.
How do you know the designation? It varies by state. For example, in Florida all mobile homes should be labeled with either a MH (Mobile Home) or RP (Real Property) decal. If no decal is present, they should be treated as chattel & reported to the tax assessor’s office for the purchase of an appropriate decal. See FL Dept of Revenue.
Inspection, Preservation & REO providers should always inspect, photograph & report the expiration date and type of any mobile home decals found.
Any repairs on roof, plumbing, & A/C on chattel regardless of nexus, should be treated with the appropriate sales or use tax in accordance with FL State Law, Rule 12A-1.051, https://www.flrules.org/gateway/ruleNo.asp?id=12A-1.051 & http://floridarevenue.com/dor/businesses/seata.html
Need help? For best practices, call AIM Your Way. 800-776-1815
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