Housing and Community Development (HCD) Practice Exam

In the sale of a 1979 Mh-Unit, which separately stated item is subject to general tax?

1. Concrete driveway and patio

2. Landscaping

3. Storage shed

4. Carport directly affixed to realty

The correct answer is: Storage shed

In the context of the sale of a 1979 manufactured home unit, the question addresses which separately stated item is subject to general tax. The correct choice indicates that a storage shed, as a separate item, is taxable. The key reason for this is that, typically, a storage shed is not considered a permanent structure and can often be removed separately without impacting the primary property (i.e., the manufactured home). As a freestanding structure, it can be treated as personal property rather than real property. This distinction is crucial because personal property is generally subject to sales tax, while real property may have different tax regulations. In contrast, items such as a concrete driveway and patio, landscaping, and a carport directly affixed to the real estate are generally classified as improvements to the property or fixtures. These items enhance the value of the property and are typically regarded as real property, which is often not subject to the same general taxes as separate personal property. Thus, a storage shed’s status as a removable, independent structure makes it the correct item that is subject to general tax in this scenario.