Housing and Community Development (HCD) Practice Exam

In the context of manufactured home sales, which of the following is typically subject to tax when sold separately?

1. Landscaping

2. Storage sheds

3. Cement patios

4. Carports attached to the property

The correct answer is: Storage sheds

In the context of manufactured home sales, storage sheds are typically subject to tax when sold separately because they are considered personal property rather than part of the real estate. Unlike the manufactured home, which is often classified as real property and might not be taxed upon sale, storage sheds can be unbolted and relocated, allowing them to maintain their classification as personal property. The other components—such as landscaping, cement patios, and carports—are often treated as integral parts of the real estate, which means they are generally not subject to separate taxation at the time of sale. These elements are usually affixed to the property in a way that makes them part of the overall structure, and as such, they are included in the tax assessment of the property itself rather than being taxed as standalone items. Understanding the tax implications associated with different components of a manufactured home sale is crucial for accurate financial planning and compliance.