Are sales of tiny homes built on chassis subject to sales and use tax?

Yes. But if the tiny home meets the definition of a “manufactured home,” the sale of the tiny home is subject to sales and use tax at one-half the normal state tax rate. One-half the normal state tax rate is currently 3.5%.   

Additionally, if the tiny home meets the definition of a “manufactured home,” the local tax single article limitation and the additional state single article tax (at half the state single article rate) apply to the total sales price. See this article  for an example of how the tax is calculated.

A “manufactured home” is a structure built on a permanent chassis and designed to be used as a dwelling, that in traveling mode, is eight or more body-feet in width or 40 or more body-feet in length, or when erected on site, is 320 or more square feet.

The same principles of sales and use tax that apply to regular home construction apply to a non-moveable tiny home built on a slab that becomes an improvement to realty upon installation.  The reduced state tax rate does not apply.

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