DEPARTMENT OF LOCAL AFFAIRS
Division of Property Taxation
RULES AND REGULATIONS GOVERNING PERSONAL PROPERTY DEDUCTION, VALUATION AND DEPRECIATION OF MOBILE HOMES
8 CCR 1304-1
[Editor’s Notes follow the text of the rules at the end of this CCR Document.]
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BASIS AND PURPOSE
S. B. 214 (Session Laws, 1977, pp. 1740-1749) enacted in 1977, provided that, beginning in 1978, mobile homes would be subject to an ad valorem method of taxation similar to the method of taxation of conventional housing.
The purpose of these rules is to set forth the portions of the retail price of mobile homes which represent household furnishings and schedules of depreciation for mobile homes as required by 39-5-203(2)(b) and 39-5-203(2)(c), C.R.S. 1973.
These rules are adopted and promulgated by the Administrator to implement the statutory requirements set forth by the legislature in C.R.S., 1973, 39-5-203(2)(b) and (c), and are designed to be in conformity with these sections and the other provisions of C.R.S. 1973, 39-5-203.
Definition:
C.R.S. 1973, 42-1-102(82)(b) states: “‘Mobile Home’ means any wheeled vehicle, exceeding either eight feet in width or thirty-two feet in length, excluding towing gear and bumpers, without motive power, which is designed and commonly used for occupancy by persons for residential purposes, in either temporary or permanent locations, and which may be drawn over the public highways by a motor vehicle.”
Rules:
39-5-203.1 Except as provided in subsection (2) of C.R.S. 1973, 39-5-203, and the rules herein set forth by the Administrator in compliance with the legislative mandate, the actual value of a mobile home shall be determined by the assessor in accordance with C.R.S. 1973, 39-1-103(5) utilizing the seven (7) factors, as applicable. The seven factors are:
Location and desirability
Functional use
Current replacement cost new, less depreciation
Market value in the ordinary course of trade
Earning or productive capacity
Appraisal value for loan purposes on comparable properties if practicable.
39-5-203.2a The actual value of a mobile home shall not exceed seventy-five percent (75%) of the retail delivered price of such mobile home when new, reduced by the exemption for household furnishings and depreciation.
39-5-203.2b The deduction for household furnishings shall not in the aggregate exceed twenty percent (20%) of the retail delivered price, when purchased, of the mobile home unless the owner provides evidence to substantiate an amount in excess of 20%. In such case, the assessor shall allow a personal property deduction equal to the portion of the delivered price established by satisfactory evidence submitted by the mobile home owner.
Built-in appliances and built-in furniture are not exempt. Household furnishings not included in the original retail delivered price, but which were purchased by the owner separately, or at a later date, are excluded from the deduction since such furnishings bear no relationship to the retail delivered new price of the mobile home.
Today's purchaser of a mobile home may order the home with no household furnishings, or with household furnishings that can range from a few inexpensive items to a completely furnished unit. However, research indicates that all new units today are sold with carpet and drapes and most new units include a stove and refrigerator. This is considered a basic package in the mobile home.
Because the amount of household furnishings included in each mobile home sale varies, the use of a constant percentage factor applied to the retail delivered price of a home when new will result in an allowance that is too small in some cases and too great in other cases.
Therefore personal property items should be deducted on an individual basis.
The original purchaser's itemized list of personal property, including the dollar amount paid, should be provided to the assessor and this dollar amount is to be deducted from the retail delivered price when new. This amount will be in addition to the allowance provided for the basic package of free-standing stove, refrigerator, carpet and drapes. When the original purchaser's list is not available then the following price guidelines for various furnishings and appliances is recommended. These tables reflect 1980 replacement costs and must be indexed to the original year of acquisition. The allowance for household furnishings is not to exceed 20% of the retail delivered price when new, except when the owner of the mobile home can provide satisfactory evidence that it exceeds this amount. In this situation the amount provided by the owner is to be allowed by the assessor.
CARPET
Minimum / Average / Good$.85/sq. ft. / $1.00 sq. ft / $1.40 sq. ft.
The carpet found in most mobile homes today will be of the average quality when related to the price guidelines. Also, carpeting will be found on approximately 80% of the total floor area of all mobile homes.
DRAPES
12-Wide / 14-16 Wide / Double-Wide$300 / $400 / $600
Drapes, like carpet, are furnished with all units necessitating a deduction for this item.
APPLIANCES
Range - Free Standing
Standard (Gas) / Deluxe (Gas) / Electric$215 / $275 / $325
REFRIGERATOR - Free Standing
Standard / Deluxe (Frost Free) / Frostfree (w/icemaker)$315 / $400 / $500
WASHER / DRYER / EVAP. COOLER
$275 / $225 / $310
FURNITURE
Furniture packages can be found in all price ranges, therefore it is best for the owner to provide the actual amount paid. However, should a situation exist where this amount is not known, the following prices are provided as guidelines:
Living Dining Room Group
This group includes a dinette with four chairs, sofa, chair, coffee table, two end tables and two lamps.
Minimum / Average / Good$400 / $550 / $700
Bedroom Group
This group includes one 54' bed, two 39' beds, night stands, lamp and vanity stool.
Minimum / Average / Good$225 / $300 / $375
The ratings of minimum, average and good as used in the above prices are in relationship to the quality of furniture and appliances usually found in mobile homes. Furniture and appliances acquired from a furniture store or from an appliance dealer may be of a different quality. However, these items would not have been included in the retail delivered price when new of the mobile home and should not be considered by the assessor when determining the value of the mobile home.
39-5-203.2c The actual value as determined by the preceding rules, 39-5-203.2a and 39-5-203.2b, is the Retail Delivered Price When New Less Furnishings and is the value which is now subject to annual depreciation as follows:
MOBILE HOME PERCENT GOOD TABLEAge In Years / Normal Percent Good
1 / 95
2 / 90
3 / 85
4 / 80
5 / 75
6 / 70
In developing a depreciation schedule, the Division of Property Taxation researched several sources pertaining to mobile home depreciation. These included mobile home valuation guides published by Unicomp, Kelly Blue Book, N.A.D.A., and the Blue Book and consultations with many mobile home dealers.
The depreciation table above was developed as a result of this research. It is based on comparisons of resale prices of used mobile homes to their retail delivered prices when new. The Administrator, in performing her required statutory duties as set forth in C.R.S. 1973, 39-5-203(2)(c), has determined that the above schedules of depreciation accurately reflect the reduction in actual value of mobile homes due to normal physical depreciation.
The last percent good figure in the table is 70 percent. This is based on the fact that most mobile homes six years old or older, and which are habitable, are selling for at least 70% of their original purchase price. If a mobile home is no longer habitable, but still has value, it shall be valued in the same manner as all other property.
Mobile homes are to be depreciated each year according to age. The AR-102 Mobile Home Property Appraisal Record card has been designed to allow depreciation on an annual basis.
The depreciation table reflects only normal age and condition. Additional allowance due to abnormal physical depreciation or functional or economic obsolescence should be measured on an individual basis.
Improvements and additional items, such as garages, carports, sheds, etc., which are not a part of the mobile home are to be depreciated in relationship to the current base year. No futher depreciation is then to be allowed until the implementation of the next base year reappraisal.
Effective Date
These rules adopted this 27th day of April, 1982, shall become effective June 1, 1982.
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Editor’s Notes
History
Code of Colorado Regulations 1