Automatic Trailer Depreciation Ended for New Homes

Ron Wilshire

Ron Wilshire

Published November 15, 2017 5:30 am
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CLARION, Pa. (EYT) — Commissioners approved Resolution 12 at Tuesday’s Commissioners meeting to formally announce their intention and resolve to eliminate the yearly depreciation on residential trailers and mobile homes.

All existing homes will be grandfathered, and the measure would only apply to newly placed trailers or mobile homes. Any new trailers or mobile homes would not receive automatic depreciation cuts in taxes. The owners of the homes pay property taxes on the housing, but mobile home sites also pay a real estate tax on the land. In the past, depreciation allowed the property taxes to be reduced as the “value” of the mobile home declined.

Director of Assessment Cherin Abdelsamie said the process of allowing depreciation deductions on mobile homes is spot zoning, targeting specific properties for alternative taxes, and is against the law in Pennsylvania. Clarion County is one of the few counties in Pennsylvania still using spot assessing. The annual reduction of five percent in depreciation would be considered spot-assessing.

“Anything we assess is based on 1975 values.”

Matt Steinman, owner of Woodland Estates on Fourth Avenue in Clarion, questioned if the change in the depreciation rule would change anything on the books.

“Nothing is going to change from the previous rates,” said Abdelsamie. “Anything done before today will be grandfathered.”

Joe Izzi questioned the depreciation rules, noting that even regular houses depreciate because of wear and tear, especially if used as rentals.

Abdelsamie replied that anyone has the option of appealing a reassessment made by the county.

An appeal is different from spot zoning in that it is a separate hearing and can be used by all property owners.

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