Arkansas

Effective December 1, 2006, modular homes sold in Arkansas are now subject to new rules regarding the collection and remittance of state sales tax.

In response to a number of pieces of legislation adopted by the Arkansas General Assembly in 2005, the Arkansas Department of Finance and Administration finalized changes to the Sales and Use Tax Rules for Arkansas businesses.

After working with the industry that sought to specifically exempt labor and other non-tangible services connected with the installation of factory-built homes, the Department maintained that 62% of the selling price of the home to the builder/retailed is subject to state sales tax. Materials used in the installation and assembly of the home will be taxed at their wholesale price when purchased by the builder/retailer separately. These materials and services will then be purchased by the consumer without additional tax.

For more information, contact the Arkansas MHA at (501) 663-8444.

Georgia

The Georgia MHA is working with the homebuilders on an amendment to the current residential and general contractors licensing law that would require that a modular home installer be licensed as a basic residential contractor. According to the industry newsletter in the state, “If a modular home is to be treated on an equal basis with homes that are built on site, the installers of the homes should be licensed.

For more information contact the Georgia MHA at (404) 955-4522.

North Carolina

On January 18, 2007 the North Carolina MHI members, their engineers, and representatives from the Department of Insurance met to discuss issues pertaining to the building, set-up, and regulation of modular homes.

The following issues were discussed: 1) The NC Residential Code, 2006 Edition, will go into effect on June 1, 2007 with changes in these areas: New Plumbing changes, new energy conservation changes, and new mechanical changes; 2) NC Modular Plans Review Approval process and; 3) Problems with local inspectors.

For a more detailed report of this meeting contact the North Carolina MHI at (919) 872-2740.

Minnesota

The Minnesota Department of Transportation has agreed to change its policy affecting the maximum overall length of vehicle combination from 103 feet to 110 feet. This change was sought by the Minnesota MHA at the behest of the industry.

In a letter to the Minnesota MHA, the Minnesota DOT stated that the length restriction on the towing vehicle will be lifted; the overall length of the vehicle combination will be set at 100 feet; the maximum width of the housing unit will remain at 16 feet, and the maximum length of the house will be set at 80 feet.

For more information contact the Minnesota MHA at (651) 450-4700.

Oklahoma

This session a bill has been introduce in the legislature that would license residential contractors. There is currently no statewide regulation of builders. By default the modular industry will fall under the Construction Industries Board. This would require anyone who builds with modular homes to obtain a Residential Contractors license. Retailers that handle both manufactured and modular homes will need a dual license, which will require education and a license fee. There’s also another bill that addresses enforcement of the contractor. Contractors will not be able to get a building permit without proof of a contractors license.

For more information contact the MHA of Oklahoma at (405) 634-5050.

South Carolina

The South Carolina Modular Housing Institute has asked for quicker approval for variances from South Carolina’s modular appearance law.

The variances are approved by the SC Building Codes Council. The catch for manufacturers and developers is that the agency only meets four times a year. That delay can stall production and placement of the homes.

The statute, HB 4735, sets minimum appearance criteria for modular homes. It is designed to prohibit modular homes that are not architecturally compatible with site-built homes.

Under the law, manufacturers can get a variance from the standards from the SC Building Codes Council. The two requests so far that have been granted were high-end homes with special designs that called for lower roof pitches. The law passes in 2004 requires a 5/12 minimum roof pitch.

The SC Modular Housing Institute supports creating a system where a state building code agency official can approve reasonable variance requests between meetings of the Council. SCMHI has expressed that standards should be set in this new systems that would insure the variances are not used as a loophole to avoid meeting existing criteria.

On the issue of sales tax, the SC Dept. of Revenue has provided the industry with a draft of a proposed amendment to the agency’s sales tax regulations. The amendment deals with decks, HVAC, driveways, and other additions to modular homes.

The amendment essentially makes any of the above listed items not part of the delivered home, and taxed separately from the home. The regulation is consistent with how the agency interpreted the law in the past.

For more information contact the South Carolina Modular Housing Institute at (803) 771-9046.