Sales and Use Tax

• Residents of Virginia must pay a sales and use tax on mobile homes registered in the state. According to the Virginia Department of Motor Vehicles, mobile home owners are charged 3 percent tax on mobile homes and 2 percent tax on mobile offices. The tax is a one-time tax that is paid at the time of sale or when the owner titles the mobile home with the DMV. This tax is paid before the mobile home is converted to real estate.
  
  

Converted to Real Estate

• In order to convert a mobile home to real estate in Virgina, the Department of Motor Vehicles title must be cancelled. As soon as the Virginia Commissioner of the Review receives notice of cancellation, the county of residence assesses tax on the mobile home as real estate and not as personal property. Virginia law states that once a mobile home is converted to real estate, it cannot be changed back to vehicle status.
  
  

Real Estate Taxes

• According to VirginiaPlaces.org, property taxes on mobile homes that have been converted to real estate are collected by local jurisdictions and not by the state. As a result, each county has its own guidelines for assessing property tax on real estate. Some counties pro-rate real property taxes on a quarterly basis unless the owner moves the mobile home out of the county. In that case, the new county of residence assesses the property tax. Real estate property tax is in addition to the sales and use tax assessed at the time of purchase.
  
  

Property Tax Rate on Real Estate

• Property tax on real estate in Virginia is calculated on both the land value and on improvements to the property. Since the property tax rate on real-estate-converted mobile homes varies from county to county, some counties have a greater tax disadvantage than others. For example, according to laws in Fairfax County, Virginia, mobile homes are taxed at the real property tax rate of $1.09 for each $100 of assessed value. In Page County, Virginia, real property is taxed at the rate of $.64 for each $100 of assessed value. A mobile home is not taxed at the real property tax rate if it has not been converted to real estate.