The North Carolina Department of Revenue recently reminded taxpayers that effective September 1, 2014, sales of manufactured homes are 50% exempt.
Before January 1, 2014, sales of manufactured homes were subject to tax at a 2% rate. Beginning January 1, 2014, these sales were subject to tax at the general sales tax rate. From September 1, 2014 onward, these sales will be 50% exempt. This means that half of the sales price of a manufactured home will be subject to tax at the general rate, and half of the sales price will be exempt.
The date of sale will determine how the sale will be taxed. A sale's date is the date of transfer of title or possession. This is typically the delivery date. The date on the invoice, bill of sale, or similar document does not determine the sale date. If the date of sale is on or after September 1, 2014, the sale will be 50% exempt.