I don't blame either for trying to keep/collect their money. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? Thank you for sharing your thoughts. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Ridiculous. We even include inside tips on how to negotiate with your RV dealer. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. Also, have you heard any war stories about California cracking down on Montana plates? This covid 19 situation has really put folks around here in a situation. Obviously, this is grey hat stuff. Michigan has a one time, lifetime registration fee for towable rvs. Its been raging pretty much ever since we started the RV Lifestyle back in 2012 and it continues to be a topic we are asked about all the time. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. So, they headed for Texas, driving the RV and towing their Jeep. But it wasnt technically Thomas who made the purchase. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. I would definitely consider registering an LLC in MT considering my home state VLT is outrageous when youre considering buying an expensive RV and your 1st year VLT can be thousands of dollars. Thank you to everyone who responded. It is 100% legal to create an LLC in Montana, and to have that LLC purchase and register a vehicle (or vehicles) regardless of your personal place of residence. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Indeed, forming LLCs and registering RVs like this is a big business out there. Part of MOTORSPORT NETWORK. Think Health Care is expensive now??? Just to clarify some of the initial posts. Setting Up Your Domicile In Texas California law says that you have to register the car within 20 days of entry into California. Yes, I get irritated when I see this. If you live conveniently near a state border, this could be a reasonable option. Thus, Michigan, Colorado, California and a number of other states are very aggressive in hunting down RVs with Montana license plates and suing the owners for taxes and penalties. Put yourself in the Trooper/Officer's shoes for a moment: You are assigned to a CA checkpoint, you see a high-dollar RV roll up, you see the Montana plates, the driver hands you a CA license and a registration for a Montana business entity. Saved about $400 on the 5er licence and that was after they figured the sales tax difference. They received their Texas license plate for the Jeep. Would you be opening yourself up to some real problems, fines etc. The rub comes in your home state, unless, of course, your real home state IS Montana. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Location: 62nd Escapade - Tucson , AZ Information This special pre-Escapade program offers all the acclaimed Boot Camp training seminars, plus some extras! Covers fuel permits for US & Canada. And I live in high taxing Michigan. They were free to travel whenever they wanted and wherever they wanted, without worry. For non-residents, which the Montana LLC that owns the motorhome would technically be, an exemption to the tax would be allowed provided the motorhome is purchased by a person who is not a resident of this state at the time of purchase and is brought into this state more than 90 days after the date of purchase.. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. Copyright 2022 Select Insurance Group. Great article! A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. I wish to say that this A qualified motor vehicle is a motor vehicle used, designed or maintained for transportation of people or property and: Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms; or Other states are not necessarily buying this! And theyrepissed. How To Start An Llc In Montana. Theyre big and conspicuous. but not tax evasion illegal since FL does not charge a property tax. Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight. And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. See the Louisiana Supreme Court case about this very issue. I would suspect most people who do this fudge here and there when it comes to their home state. Heres how to keep the target sign off your back. The cop only needs to ask for your license and then you're screwed. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. Scholarship Opportunity Its parked in Oregon. Other states with high sales taxes and ad valoremtaxes on car sales and registrations have woken up to the fact that theyre losing millions in tax revenue. Thats painting at target on your back. 3 min read 1. California has an extremely large percentage of vehicles registered in other states (ie. You lease it to yourself. Qualified motor vehicle does not include recreational vehicles. Hi Steve. The state is calling these LLC's exactly what they are, a sham to avoid taxes. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. "But I own a home in Parker or Havasu. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. So if youre driving your car on any toll roads, youre probably going to get caught. November 03, 2022at12:12 am, Noneya Business said: Rich folks do this all the time to evade paying any form of higher taxes; additionally, no different than those making South Dakota their residency to avoid paying higher taxes. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, But say your neighbors see you driving around with Montana plates and report you. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. IFTA = International Fuel Tax Agreement. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. All rights reserved. However the difference in the cost of insurance made my choice for me. They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. It has cost a ton of tax revenue. Should You Leave On Your RV Exterior Lights At Nig 7 Romantic Ideas For Valentine's Day In An RV, Don't Miss Paradise Oaks RV Resort In Florida, Currently Active Users Viewing This Thread: 1. I have to laugh when I read posts like this. Steve Mr. Policymakers . in 5 years or so it was a break even. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. http://www.loringlaw.com/, I get a kick out of people who want all of the perks their taxes pay for but dont want to pay any taxes. Susie and her husband, James Frost, reside in Livingston, Texas. An LLC can be used to operate a business. Then you can be in trouble. December 07, 2021at8:10 pm, B Moore said: Note the last sentence If the LLC is in Montana but the owner of that LLC is in Michigan. Shame on those who are so cheap they scheme to avoid paying a few hundred dollars in taxes to the detriment of all their fellow home state residents, particularly the elderly and poor kids who most depend on tax support! Nebraska, which has a 7 percent sales tax, is the most recent, according. buy it! International Accounting Standards Board : Well, to me this is all a most creative shell game between the individual taxpayer vs. individual regional entities (states) each are running their own affairs and trying to keep their coffers full enough to support their overhead (programs, roads, wages for their institutions and beurocracies, etc etc). Establishing a Chain of Ownership for Your Vehicle 2. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Interestingly enough boats and aircraft are not taxed. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Is there a loophole for those who do Montana LLC RV Titling? . As we mentioned, the CHiPs are out in force, looking for this specific circumstance. I even got my old DL# back. I was also going to point out it is Limited Liability Company and not Corporation. U-Haul is headquartered in Phoenix, so it makes sense. Next, they visited the local Department of Public Safety (DPS) office. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. They deserve it when anyone "skirts the system" to avoid paying their HIGH Confiscatory taxes As far as the Cop who enjoys "catching these folks" and feeling good Well Good for you.. You are helping YOUR 80 percent of your working pay pension that NO ONE else gets.Thank you very muchNo wonder the State is going broke.. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. Make it look like you belong in Montana. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." Testimonials. Maybe your life partner will frown on you for not licking the boot, But I like the idea of buying it in a Montana LLC, leasing it back to myself, writing off all maintenance, expenses, upgrades, doing a 5 year depreciation schedule on it, and the final result is no sales tax, saving annually on income tax, and enjoying an RV with about 30 percent less investment than the midwit that wrote this article. They make tax collectors drool. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. Uhaul is a legitimate business. Why in the world would I fabricate something like this, I still have a job to occupy my time. Why Shouldnt you register your luxury vehicle under a Montana LLC? the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio Should say to California, This is MY 2nd HOME as defined by the IRS!!!! But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. All vehicles inside the LLC are rated commercial - because it's a business. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. Consistency between these items, license plates and driver license, is the best way to proceed. Case in point, it's about $600 if you own a new $40,000 vehicle. Its not illegal to register a mh in another state when it begins to an llc of that other state and avoid taxes of any other state. Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. 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