WILMINGTON, NC (WECT) – Sales tax on mobile homes will spike in the New Year. The taxes on a $40,000 single-wide will jump from $300 to $1,900.
Under current law, sales tax is capped at $300 for a single-wide mobile home and $600 for a double wide.
Starting Jan. 1, mobile home buyers will pay a 5 percent sales tax.
Lawmakers expanded sales taxes on a variety of goods and services this year as they cut personal and corporate rates.
Several customers at Clayton Homes of Wilmington rushed to close on homes before the taxes increased, according to General Manager David Moore.
He understands the state has to get revenue from somewhere but feels like his industry is being singled out.
"It's impacting the people that have the least ability to pay for it because we do deal with lower-income housing, or more affordable housing, and so, they're the ones who are going to feel the pinch the worst, and I'm not really sure that's right," said Moore.
Moore explained the increased tax comes at an especially bad time for the mobile home industry.
"You can imagine what we just went through with the housing crisis and the mortgage crisis, and we're trying to get our way back out of that, and we've done okay, we are digging our way out of it," he said.