Ask Terry Questions Property Tax

Property Tax

By Terry Savage on June 18, 2018 | Wild Card

My husband and I live in a 55+ Mobile Home Community in Illinois. We moved in in September. We paid cash for our home but we do NOT own the lot. The lot rent is $675/month and we are required to pay $152/month property taxes too. Since we do not own the property, is this legit? There are 441 total homes in the park and 440 other families who would like to know the answer to this question too. Thanks

Terry Says

This was SUCH an interesting question and because I had absolutely no idea how to answer(!) I turned to the expert: Andrea Raila, who actually ran for County Assessor last year.
I am printing her long, complicated answer in full below, as well as her contact information:

Mobile homes within a mobile home park typically will pay a renting fee for the lot and the actual home has a Mobile Home Local Services Tax based on the age and square footage of the home—that’s where the $ 152 monthly taxes fits in and it’s legit.

Because she lives in a park and subject to the privilege tax or “chattel” an item of tangible movable personal property as follows in Illinois law: “Mobile homes and manufactured homes in mobile home parks are assessed and taxed as chattel under the “Mobile Home Local Services Tax” (35 ILCS 515/). If a mobile home or manufactured home described in this subsection (b) is sold, transferred, or relocated to a different parcel of land outside of a mobile home park, then the home must be assessed and taxed as real property whether or not the mobile home or manufactured home is affixed to a permanent foundation” Mobile homes and manufactured homes outside of mobile home parks are assessed and taxed as real property whether or not such mobile homes and manufactured homes are affixed to a permanent foundation. Mobile homes and manufactured homes located on a dealer’s lot for resale purposes or as a temporary office are not subject to this tax.

She can check out if she and her neighbors are paying their fair share by the following guidelines of the tax. She might want to consider joining the Illinois Manufactured Housing Asscociation (IMHA) a trade association representing factory built housing industry through education and member support. Also seniors and disabled persons owners that reside in the mobile home can apply for a 20% reduction of the Local Services Tax. Disabled veterans or unmarried surviving spouse are exempt from this tax.

All mobile or manufactured homes must be registered within the county where harbored. Habitation of the mobile home must be intended for 2 or more months for the privilege tax to apply.
Mobile homes are taxed at a statutory declining rate based on square footage and the age of the mobile home.
TAX RATE (from 35 ILCS 515/3) The owner of each habitable mobile home shall pay to the County Treasurer of the County in which such mobile home is located an ANNUAL tax computed at the rate shown in the following table:
• Model year and 1st and 2nd year following 15 ¢ per square foot
• 3rd, 4th and 5th years following model year 13.5¢ per square foot
• 6th, 7th and 8th years following model year 12¢ per square foot
• 9th, 10th and 11th years following model year 10.5¢ per square foot
• 12th, 13th, and 14th years following model years 9¢ per square foot
• 15th year following model year and subsequent years 7.5¢ per square foot

Andrea Raila ӏ Senior Tax Analyst
Raila &Associates,PC ӏ
747 North LaSalle Street, Suite 700 ӏ Chicago, Illinois 60654
P: (312) 587-9494 ӏ F: (312) 376-3118 ӏ Toll Free: (866) 931-1428



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