Experienced Residential Modular
Housing Tax Lawyer
The expanding market of residential modular housing offers exciting opportunities, but it also comes with some challenges. Residential modular housing sales and use taxes are quite different from traditional site-built homes; they are detailed and vary depending on classification, installation, and location. Most manufacturers ship modular homes in numerous states and the sales and use tax laws are different in every state. The approach to taxing residential modular housing isn’t a one-size-fits-all situation. It requires understanding how these factory-built structures are classified under state and local tax laws.
While general or property tax lawyers can handle broad real estate transactions, factory-built homes require specialized knowledge. Steve Snyder is an experienced modular housing attorneys who completely understands how residential modular housing sales and use tax law impacts your business. Steve provides targeted legal advice for every state your company does business, so your operations are tax-efficient and fully compliant.
Risks of Mismanaging Residential Modular Housing Tax
The unique tax treatment of residential modular construction presents financial risks and operational challenges. Getting expert advice from a sales and use tax attorney who knows the modular industry will protect your business from costly tax liability after the transaction is done and the project is built. That is, tax liability that you can not go back and collect after the transaction is completed.. One of the biggest challenges lies in structuring the transaction between the manufacturer, builder/developer and installer to take advantage of the best tax treatment.
Whether a modular construction project is viewed by state tax regulators as the sale of tangible personal property or an improvement to real property will have a major impact on the amount of tax due. Structuring the transaction between the parties involved will have an impact on whether you are required to pay sales tax on the entire invoice price of the module home or on materials only. That determination can have up to a 50% difference in the total amount of tax due. And a mistake will cost your company when you are audited. And by that time, you will not be able to go back to the buyer and collect the additional tax due. Your company will be liable for the unpaid assessment plus interest and penalties.
get in touch
Steve Snyder has experience with the modular tax laws in every state in the country. He can advise you as to how each state you do business in taxes your project and how you can keep your tax liability to a minimum. If you have never had Steve review your internal sales and use tax policy for each state, you should contact his today.