Mobile home titles and taxes in Minnesota

Minnesota titles manufactured homes through the state, ties title transfer to paid property taxes, taxes a home on a rented park lot as personal property, and provides a path to convert a home on owned land into real property. The information below describes how the law generally works; anyone with a specific title or tax question should consider consulting a licensed attorney in Minnesota.

What the statute says

On titling, Minn. Stat. §168A.05, subd. 1 directs the department to "issue a certificate of title for the vehicle or manufactured home," and subd. 1a provides that for a manufactured home the department "shall not issue a certificate of title" unless the county confirms "that all manufactured home personal property taxes levied on the unit ... have been paid."

On taxation, §273.125, subd. 7 provides that "the tax assessed on manufactured homes is a personal property tax." Subd. 8(c) provides that a home whose "owner of the unit is a lessee of the land" or that "is located in a manufactured home park" is "treated as personal property," while subd. 8(b) provides that a home on owned land with a permanent foundation and utilities "must be valued and assessed as an improvement to real property." To make that conversion, §168A.1411 lets an owner "surrender the manufacturer's certificate of origin or certificate of title to the department for cancellation so that the manufactured home becomes an improvement to real property," recorded by "an affidavit of affixation."

How it works in general

A Minnesota manufactured home carries a state certificate of title, which is how ownership and any lien are recorded — and the title cannot be transferred to a buyer until the home's personal property taxes are paid, so a seller clears the tax first. A home sitting on a rented park lot is taxed as personal property (billed to the home owner), even though it is assessed at the real-property classification rate. When the homeowner places the home on land they own, on a permanent foundation, they can surrender the title for cancellation and record an affidavit of affixation, after which the home is assessed and conveyed as real property. The affixation form and process differ for a resident-owned cooperative, and the county must confirm taxes are current.

Common scenarios

General examples Minnesota residents commonly encounter:

• A resident sells a home on a rented lot. Ownership transfers by the state certificate of title — and the title can't transfer until property taxes are paid (§168A.05).
• A resident gets a tax bill on the home. A home in a park is taxed as personal property (§273.125, subd. 7, 8(c)).
• An owner sets the home permanently on owned land. They can surrender the title and record an affidavit of affixation to make it real property (§168A.1411; §273.125, subd. 8(b)).

Other authorities that may apply

The state department that administers vehicle and manufactured-home titles issues and cancels the certificate of title (Minn. Stat. ch. 168A); the county assessor and treasurer handle the manufactured home tax (§273.125) and the tax-paid statement required before a title transfers. The county recorder or registrar records the affidavit of affixation. The bill of sale and any financing documents also control.