Law change regarding manufactured homes and STAR

RPSV4 Manufactured Home Utility Guide

Beginning in 2022, most manufactured homes will no longer be eligible for the STAR exemption. The following types of property will be eligible for the STAR credit only—not the STAR exemption—as long as the manufactured home is included in the landowner’s assessment

• manufactured homes in parks, and
• manufactured homes on land that is owned by someone else. 

Exception: Manufactured homes that are receiving an exemption other than STAR, such as a veterans or senior citizens exemption, should be separately assessed from the landowner. Therefore, they can continue to receive a STAR exemption.

Notices to impacted owners

Where possible, the Tax Department will automatically switch impacted manufactured home owners directly to the STAR credit without any action on the owners’ part. The Tax Department will send a letter to these owners letting them know of the change. (See Form RP-425-RMS-MH.)

In cases where the department is unable to automatically switch the owner to the STAR credit, we will send them a letter with specific instructions to register for the STAR credit. (See Form RP-425-RMM-MH.)

In addition, we are sending notification of the change to mobile home park owners. (See Form RP-425-MHF.)

We will share the letters and notice on this page before we begin mailing them.

Benefits to manufactured home owners

There are two benefits that many manufactured home owners will receive as a result of this change:

• The STAR credit for manufactured homes is based on a minimum full value of $20,000. Manufactured homes that received a STAR exemption in 2021 and had an assessed value below $20,000 will receive an increased benefit beginning in 2022.
• Manufactured home park owners will no longer be entitled to deduct a 2% administrative fee from the STAR exemption savings for passing the benefit along to unit owners.

Questions and answers

Q. May a new homeowner in a manufactured home park who will receive a veterans or senior exemption also receive a STAR exemption?

A. No. New homeowners, including new owners of manufactured homes, are not eligible for the STAR exemption. New homeowners should register for the STAR credit. We recommend sharing this STAR fact sheet with new homeowners.

Q. In 2021, a manufactured home was separately assessed because the owner qualified for the senior citizens exemption. The owner was also receiving an Enhanced STAR exemption.  In 2022, their income for the applicable income tax year will be above the limit for the senior citizens exemption but below the limit for Enhanced STAR. May they continue to receive the STAR exemption in 2022?

A. They may receive STAR, but not as an exemption. Since they won’t be eligible for the senior citizens exemption in 2022, their unit will be included in the 2022 assessment of the park. STAR exemptions may no longer be granted to manufactured homes that are included in the assessment of parks. 

To continue receiving a STAR benefit without interruption, they should register for the STAR credit.

Q. In 2021, a manufactured home owner received the STAR exemption while their unit was included in the assessment of the park. In 2022, they’ll begin receiving the senior citizens exemption, so they’ll be separately assessed. May they keep the STAR exemption in 2022?

A. Yes. The STAR exemption they would receive in 2022 would be considered the continuation of an existing exemption, not a new exemption. Therefore, it may be granted.