Ah yes, the DMV. Taxes. So fun. Unfortunately this is just something you have to go through in the tiny house journey. The process is confusing for tiny houses, and it doesn’t always go the same way for everybody. Since there is nothing to define what a tiny house is as far as the DMV is concerned, you could have a vastly different experience at one office vs another. There are so many variables which make it really tough to follow any sort of guideline or “this is how you do this” formula.

Here is as close as I can get to a step by step guide. It still varies drastically based on where you live, where your house was built, and how far under the radar you want to stay. I would call this the “safe approach,” or the general steps to think about and then go into further detail based on your specific situation.

SALES TAX

First things first, you will need to pay sales tax on the purchase price of your house for the state that you live in. This can get a bit confusing when you’ve had your tiny built in in a different state and especially a different country. Here are some examples:

• Tiny house built in Oregon and you live in California.

  Oregon does not have sales tax, however, California does, so you are required to pay applicable California sales tax on the entire purchase price of your house.

• Tiny house built out of state and you do not want to register.

  You may be wondering…”If I never plan to move my tiny house, why register it with the DMV or pay sales tax?” It’s a great question and I know people who have gone either way on this. Basically, if you are ever in a situation where you need to move it, or park it at an RV park, it will need to be registered with the DMV. If you wait to register it until you need to move it, you will be fined a hefty fee for the delay. For me personally, I did not want to get myself into that situation and just wanted to play by the book. Others very intentionally do not want to register it as an RV, for the simple fact that it isn’t an RV, so why register it as something that it isn’t! Tiny house laws are ever evolving, and very likely someday soon we will be able to classify them as “tiny houses.” Additionally, perhaps new laws will be put into effect for “tiny houses” but since you registered it as an RV, they won’t apply to you. This is speculation at this point, and it’s hard to say. Use your best judgement for your situation.

• Tiny house built in Canada (or a country other than your own) and you live in a state with sales tax.

  I can’t speak for all Canadian builders, but in my experience with Minimaliste, I was not charged Canadian taxes. I was responsible, however, for paying California sales tax once it entered the state. In the case of out of the country builds, the IRS knows that you had goods imported under your name because it is reported when it crosses the border. So there really is no way around not paying sales tax when your house has to cross a border.

• Your builder charged you sales tax.

  If this is the case, you will not need to pay additional sales tax at the time of your DMV visit. They will ask you at the DMV for proof that you did in fact pay taxes on it, and likely your builder will give you that paperwork to make it easy.

Some people will try to get away with paying sales tax on just a portion of the purchase price, for example, the trailer only. I can’t give any advice on this because I didn’t try it. I’ve heard of this working for some, but again, this would vary depending on whoever you are blessed with at the DMV. Some will also try to register online in a different state. Again, I don’t know. I just wanted to deal with the DMV to the best of my ethical and legal judgement and be done. In the end, we’re trying to get laws passed as tiny housers and be seen as valid home dwellers who pay their taxes, blah blah blah, not as people who are trying to get away with something.

Registration

If you’ve decided to register your tiny house, you will need to do so through the DMV. Depending on your state, you will have anywhere between 10-30 days to get your tiny house registered, or you will incur a fine. You may have seen that you are required to show your tiny house at the DMV in order for it to be inspected. This is not true and there is a much easier way to get it pre-inspected. Do a google search for “vin verifier” in your county. For around $65, someone will come out to your location and fill out the DMV registration form for you. They will be the ones to classify it as a travel coach, RV, or travel trailer. Sometimes they aren’t sure what to classify it as, and they’ll just use their best judgement. My verifier wasn’t 100% sure, and I told her I knew of others who had classified as a travel coach, so that is what she put down. It’s a very easy and simply process, way easier than towing your tiny house to the DMV! They will give you the forms you need to take to the DMV. Here are all of the documents you will need to bring (varies by state, check your local DMV website for specific requirements):

• Registration Application Form given to you by your vin verifier.

• Title, Certificate of Origin, Commercial Invoice, and/or an applicable border papers. Anything else that you would need to bring to the DMV like the title or purchase information will likely all be given to you and explained in detail by your builder.

DMV VISIT

I was pretty nervous for my DMV appointment. I had fears of hidden fees, or being found out, or not being able to successfully register. It all went well and while looking over the forms, my DMV clerk mumbled “tiny house…..so cute.” which gave me a sigh of relief. In order to have a successful appointment, here are a few guidelines:

• First, make sure you actually make an appointment instead of just walk in. If you can, make your appointment for a weekday and even better, at a lesser populated DMV. It can be any DMV in your state, it doesn’t have to be in the same city as your tiny house. You can check online for typical wait times for any DMV to make a better timing assessment.

• Come prepared with everything you need. You want to do this once and not have to come back. You’ll also be in better standing with everyone who works there if you know what you are doing and aren’t wasting their time.

• You may choose to try to hide the fact that it is a tiny house to make it less confusing. I didn’t want to say “tiny house” because I was afraid of being found out. In hindsight, I’m not sure the DMV really cares of the legalities beyond registration - they just want you to register and pay them.

• If you did not pay sales tax to your builder or anytime beforehand, you will need to do so now. Both your registration fees and sales tax are due at your visit. Like you have to write them a check right then and there, so be prepared with money and a check (they don’t take credit cards at the time of writing this).

This part of the process can be super intimidating and it’s not always clear what’s “right.” If you know others who have gone through the process, ask them about their experience and what kinds of obstacles they faced. I reached out to as many people as I could when trying to figure all of this out - I wouldn’t have known how to do any of this otherwise.

Feel free to reach out if you have any questions.