I’ve got a park that was up zoned commercial some years back and the county now taxes it with a commercial rate multiplier. That increased the taxes about 8k.
For those of you that own legal non-conforming parks, can the county get away with taxing at a commercial zoning rate when it is a MHP?
Is there a way to fight it and win? Would I have to show that the best use is a MH Park?
I have never experienced this but I’m fairly certain that this is addressed differently for different states. I do remember seeing something on it before but can’t remember the state or the outcome. Anyways, give the forum the state and this might be worth a call to the state MHA if you haven’t already tried that. I’m currently in diligence on a property where the land values are trending this direction. I’d also be very interested to get some insight on this.
Here in TX you have to change the zoning to change the tax rate. You should also be careful changing the zoning to MHP as it may impose city code requirements you do not have today.
I would also consider fighting the taxes in general. This may not apply to you, but I have seen cases where a county will value the Park based on what someone paid for it - instead of the unimproved land value + the aged infrastructure. The argument to the tax office is that the land was purchased based on the business value, not the land value, which includes having lots of tenants with their own homes paying lot rent. If those tenants decided to leave the next day then the business value would be zero, but the land value would not be zero.