What Does "In Lieu of Tax" Mean for a Mobile Home?

Mobile Office

In some states, a business owner can pay a registration fee instead of paying property tax. According to the State of Oklahoma Mobile Home Guide, a business owner can pay a commercial registration fee in lieu of property tax on a trailer used as a mobile office. The registration has an expiration date determined by the state at the time of issuance. You cannot use the mobile office as a permanent living space or as sleeping quarters.

Date of Purchase

The date of purchase can influence a state's "in lieu of tax" policy. In California, a mobile or manufactured homeowner can pay a registration fee in lieu of property tax if the owner purchased the home before July 1, 1980. The home must be transportable and cannot have a permanent foundation. Mobile homeowners who purchased a trailer after July 1, 1980 must pay property tax similar to that on conventional homes.

Exceptions

Some states have taxation exceptions on mobile homes. In South Dakota, all mobile homes are appraised and taxed based on the value of the trailer and the amount of time the trailer is located within the state. This taxation is in lieu of all other property taxes and does not apply to dealers' mobile home inventory.

Uniform Fee

The Division of Motor Vehicles can issue a uniform fee in lieu of property tax. The Utah DMV charges a uniform fee in lieu of property tax for vehicles that are not issued age-based fees. Mobile homeowners must pay a 1 percent fee on the fair market value of the trailer in lieu of property tax.