A corporation, which has been headleased land, subdivides the land into residential lots that are registered in the land registry, and subleases the lots to persons who install manufactured homes (qualifying as “mobile homes,” as defined in s. 123(1)) on the lots. CRA indicated that the subleasing of the land would be regarded as the supply of “part of a residential complex” – except that if the land was a site in a residential trailer park, the s. 123(1) definition of residential complex as it applied (in para. (d) thereof) to a mobile home, excluded the land from the residential complex (consisting only of the mobile home), so that the sublease instead would be a supply of bare land.
Regarding whether the site was a residential trailer park, CRA stated:
[G]enerally, a residential trailer park is land included in a trailer park, or where there are two or more trailer parks that are immediately contiguous to each other, the land that is included in those contiguous trailer parks, provided that in either case the land encompasses at least two sites. Provided all other conditions within that definition are met (including: (i) that 90% or more of the sites are supplied under a lease, licence or similar arrangement under which continuous possession or use of a site is provided for at least one month in the case of mobile homes or other residential units (or twelve months in the case of travel trailers or motor homes, or similar vehicles that are not residential units), and (ii) that 90% or more of the sites, if occupied by mobile homes, would be suitable for use by individuals as a place of residence throughout the year) a leased land development may be considered to be a “residential trailer park” as defined in subsection 123(1).
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|Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 6 - Paragraph 6(a)||a sublease of land to a mobile home occupant is a supply of part of a residential complex, unless the site is a residential trailer park||271|
17 May 2011 Case No. 37706-r
water to the sites at a park was shut off before the winter freeze-up and propane tanks were not refilled in the winter as there was no winter access (other than by foot). As the sites could not be considered to be accessible and serviced throughout the year, the park was not a residential trailer park.