Florida Legislature Sends Manufactured Home Sales Tax Reduction to Governor For Approval

UPDATE: On Friday, May 6th, Governor DeSantis signed the large tax relief bill, CS/HB 7071, into law. The final law kept the original tax reduction on new manufactured home sales. This reduction, which brings the sales tax from 6% to 3%, will take effect on July 1, 2022. Unlike most tax reductions in this bill, which are temporary, the tax reduction on new manufactured home sales is a permanent one.

Original story as follows:

Florida’s State Legislature recently passed a bill that will cut the sales tax on new manufactured homes sales in half. 

If Governor Ron DeSantis signs the bill into law, the state tax on manufactured home sales will fall from 6% to 3%. This means that Florida homebuyers will see reduced taxes when buying a manufactured home if the bill passes. 

Not only that, but the tax cut would serve as a meaningful measure against rising inflation across many industries in the U.S, providing consumers with one area where they can save money. 

“The tax cut will reduce the cost of a new manufactured home in Florida by an average of $4,200,” Jim Ayotte, President of the Florida Manufactured Housing Association (FMHA), said in a statement to the MHVillager.

The reduction was included as part of a larger tax relief bill for Florida consumers, CS/HB 7071. The bill would temporarily reduce or end the sales tax for various goods. This includes energy-efficient appliances, gasoline, and power tools, among many others.

However, the sales tax reduction on manufactured homes would be a permanent one if the bill passes.

Ayotte added that for some buyers, the cost savings may be a tipping point in their purchase decision. For others, it will enable them to become homeowners when they could not do so before the tax cut.

If the bill becomes law, the manufactured housing tax cut will take effect on July 1, 2022. No clear date has been set for when the bill will head to the Governor’s desk from the Legislature.

The Impact on Florida Homebuyers

FMHA commissioned a study on the benefits of the tax break for Florida manufactured homebuyers.

FMHA’s study found that the tax relief bill would:

  • Enable nearly 40,000 additional Florida families to buy a new manufactured home
  • Result in over 1,800 new manufactured home sales totaling $148 million
  • Create over 2,000 industry jobs and $70 million in new wages for all jobs created
  • Increase Florida’s economy by $185 million
  • Create more than $13 million in state and local tax revenue

“Nearly 1,000 people a day are moving to Florida,” Ayotte said. “This trend is expected to continue at least through 2025, which will further fuel demand for housing, especially value-laden manufactured homes.

FMHA conducted this study partnership with the research team at The Center for Economic Forecasting and Analyses at Florida State University.

The tax relief package totals $658 million. The tax cut on manufactured housing is one of many benefits for Florida consumers in the bill.

You can read more about the tax relief package from the Florida Senate. And, you can even track the bill’s movement through the Florida government, including vote history.

Florida is not the first state to cut sales taxes on manufactured homes. Georgia, for example, reduced their manufactured home sales tax in 2019. 

However, Ayotte is confident that Florida won’t be the last state to provide relief for manufactured homebuyers. 

“Hopefully other states will benefit from the work Florida has done on this policy issue,” he said.

If you’re ready to buy a manufactured home in Florida in anticipation of the potential tax cut, you’re in luck. MHVillage is the best place to find manufactured homes for sale in the Sunshine State. Start your home search today and check out this guide for buying a home in Florida

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