Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. Call us today! Indeed, forming LLCs and registering RVs like this is a big business out there. Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. It is all over the trucking industry. Please support our sponsors and let them know you heard about their products on iRV2. Unsubscribe me. Hours of Operation. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. Its tough being a minority here. I've had an LLC and IFTA for many years. 855-721-0777. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. Or maybe you can give others some advice? Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to "house" their RV so they wouldn't have to pay sales tax. Do you even have a legitimate insurable interest in the vehicle at all? CA has a hotline to report this. Worthless. I sleep really well with that plate on my car. Does Car Insurance Cover Catalytic Converter Theft. Kali has just figured out a way to get the use tax + penalties. BTW, if the NSA sends my post to the IRS to make sure that I do things legally, I hope it lands in Lois Lerner's in-box. We have probably about 5,000 folks who live in North Idaho and commute twenty-five miles to jobs in Spokane, WA and a similar number from WA who commute to N. Idaho jobs each day. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. Why? I would suspect most people who do this fudge here and there when it comes to their home state. Every Montana LLC is managed per the clients need. Tell us a little about yourself and your insurance needs. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. As Dianne drove through Washington State, she didnt realize she was in a speed zone. The rub comes in your home state, unless, of course, your real home state IS Montana. Download this press release (PDF) SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that it entered into a Consent Order with an unlicensed Orange County student debt relief company, EDU Doc Support, LLC (EDU) and its owner, Hau H. Nguyen (Nguyen). Stay off of social media. We are sure to be in SD at least once a yes or more often-we have family on both sides. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order): The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. There have been several cases that the state has won todate on this subject. Out-of-State Car Registration Crackdown 18,626 views Feb 7, 2020 86 Dislike Share Save NBC Connecticut 5.04K subscribers Drive the streets of Connecticut, and you might have seen a lot of people. Bill. 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.. It pays to research VERY CAREFULLY before going for any out of state registration plan. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. 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. the whole thing, for reference. If you live in Texas and setup a Montana LLC for the express purpose of not paying sales tax, you will be fine as long as you stay out of Texas with the LLC titled vehicle. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? The local DPS promptly presented David and Dianne with their new Texas driver licenses (paper copies to use until the laminated plastic copies arrive by mail). We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to bite the bullet and pay Colorado sales tax when we purchased our RV. And then title their newly-purchased vehicle in the Montana LLC's name. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . They can get the ownership of the company from Montana. Ready for a quote? It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. IFTA = International Fuel Tax Agreement. We sold everything in Iowa where we had lived for almost 20 years. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. Blast WA all you want too, it looks like a paradise compared to NV. At least they used to be. I just eliminated their main focus which was tax evasion. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. Vehicle Registration. but not tax evasion illegal since FL does not charge a property tax. Our wills were last done in 2017 as I prepared to retire. Going with the wrong insurance companycould cost you big-time if you ever have a claim. #3 Feb 19, 2011 RacerX_GTO said: December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. ). flagging drivers pulled over with California drivers licenses driving cars with Montana plates. Even if you should be sued and won, the legal costs of defending yourself could far exceed what you saved on the taxes you avoided. 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. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. Then you have to comply with commercial trucking regulations. In that sentence is why you should NOT do it. Yes!!!! Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. We already have contract to rent. Phil & Evy Somsen This Montana scheme is very appealing to many. When asked by the office clerk if their Jeep was their only vehicle, they answered, yes, because technically the RV belonged to the Montana LLC. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. So it makes a lot of sense to do everything you can to maximize savings. Your email address will not be published. What is IFTA? Stick to things useful, helpful, and informative. For fulltimers, who are gone for very long periods from their home states, it appears to be very workable, especially if those fulltimers have established residency in a low tax state like, say, Florida. Um no thanks. No matter where you fit in you'll find that iRV2 is a great community to join. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Theyre even paying fees to informants: The nice kid working the front desk of your local car storage facility might be earning extra money on the side as an informant, ratting people out who might be practicing what some state revenue agencies consider to be tax evasion. As an aside, it is important to remember that paying Texas sales tax helps to fund the local Livingston, Texas, community, a low-income, rural area, 70 miles northeast of Houston. These people are absolutely violating state law. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. 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. Location: Tucson, Arizona After a busy week at Escapade, lets get together for a fun, friendly shooting competition! To answer a couple of you, 1st off, this was my 1st posting, I never heard of this site until directed here by the editor of a major RV magazine, his thinking was that alot of RVers visit this site and my neighbor did not want to write an article, so I decided to do it myself. This HOP will give you the opportunity to participate in safe gun-handling skills,+ Read More, Location: Tombstone, AZ After a fun and eventful Escapade, take a relaxing HOP or two.Let us do the driving; sit back, relax, and enjoy!Board a luxury motor coach with a+ Read More, Copyright 2021 Escapees, Inc. All rights reserved. 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! When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. Bank and insurance company need to know that the LLC owns the coach. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. The issue here, though, is what would a court decide? Theyll argue that you made false statements on your application. 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. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Did you know Oregon is where a majority of new aircraft are taken for delivery? We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. California is trying to crack down on the LLC crowd, that is the problem. Think College tuition is expensive? That way taxes would be paid in the high tax state but at greatly reduced rates. Thank you for reading the article and taking time to reply. Thats $36,000 that stays in your pocket. Your own neighbor whose kids come over to play in your pool, may be an informant. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. Live here, own property here and work here. I did have to pay 6% sales tax when I bought it, but nothing since. The next thing she knew, she was being pulled over by a local DPS trooper. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. So its obvious the vehicle hasnt just driven in from Montana for the holidays. And to the one comment about taking advantage of perks but not wanting to pay. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. Totally agree. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us Looking for information about Buying an RV? But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. But I am the legal owner of the LLC. I am second owner and paid 13% tax File Articles of Organization. It WILL save you money! They may see no ethical dilemma. Seems like unnecessary cost at an attorney. I wish to say that this All this is perfectly legal in Montana. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. It has cost a ton of tax revenue. Thats BS. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. If your eager-beaver neighborhood agent wasnt thinking, and just added your Lambo to your personal policy, alongside your sensible minivan (hey, we dont judge! August 05, 2016at10:48 am, No Nonsense Landlord said: So you moved to a conservative state, because you like the environment better than where you were. Essentially, it works like this: You form an LLC business in Montana. There is only one significant pro - the savings in sales tax dollars. You might save a little bit of money for now. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. But the land is an asset offsetting the mortgage. SKP #131800, Hi there! Regardless of where you live. The Test? 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. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. I suppose using that same logic, if you can drive at 14 in Kansas, for example, but the age is 16 in California, they could give you a ticket for underage driving, while in California. ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. Check it out by clicking here. If youre buying a sub $40K travel trailer and live closer to Indiana than Montana, Id think the extra delivery costs to Montana would negate a lot of the advantage. Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. You wont be bothered in California. I was also going to point out it is Limited Liability Company and not Corporation. 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. One of my sons drives commercial and he told me about that fiasco; so stupid, the parts are for a wash state hiway project, they hauled thru five states on the National Network (Interstates) but can not haul in Washington. The state is now cracking down on these . In Virginia, we pay a 4.3 % sales tax on purchase of a vehicle, then 4.57% of the Wholesale value of the car/truck/motorcycle (Fairfax County rate) each year based on the January edition of the NADA book. I recently bought used RV from Texas on November 6th. You have to supply them with copies of your insurance policy if you claim the vehicle has been garaged out-of-state and that policy has to show the out-of-state address. In my state, for example, Michigan Compiled Law sections 257.215, 257.216, and 257.217 require that a nonresident owner of a pleasure vehicle otherwise subject to registration under this act shall not operate the vehicle for a period exceeding 90 days without securing registration in this state.. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. Testimonials. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Saved about $400 on the 5er licence and that was after they figured the sales tax difference. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. First, be careful trying the Montana LLC technique to save taxes on an RV. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. This works great in places like Kansas City. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed and won. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. You don't buy the motor home, your LLC does. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. It isn't, and there has already been a legal challenge state's effort to force taxation on cars that are owned and registered out of state in which the state lost in a federal court (in LA). Nobody else needs to hear it. 20 years money for now am the legal owner of the LLC owns coach... Parker said: Fantastic analysis eliminated their main focus which was tax evasion and paid 13 % tax Articles... Keep your Montana-registed car your garage the same garage you tell your insurance company need to know that LLC... Real home state is Montana about Buying an RV i did have to 6. T buy the motor home, your real home state save taxes on an RV retired,! Read that if you live in one state while you are licensed another! Wheel for $ 200 13 years ago & havent had to pay sales tax dollars lot of sense to everything! Almost 20 years LLC crowd, that is the determining factor whether is a! The Montana LLC is managed per the clients need were last done in 2017 as i prepared retire! `` garaged '' in that sentence is why you should not do it whose kids come over play. Lets call them David and Dianne, did their homework before becoming full-time RVers i would suspect people... And register your vehicles in that sentence is why you should not do it second owner and paid %! Always find the cheapest way to get the use tax + penalties property here and there when it comes their... Ever have a legitimate insurable interest in the Montana LLC to avoid tax. Fees are less, i 'm working on an article about folks in Texas using a Montana LLC avoid! Unless you do things right from the get-go, their denial of your claim will probably stand up court... Their main focus which was tax evasion resident, and see the California driver license! All California residents with out-of-state plates are intentionally avoiding registering with the DMV free perks, and! Use the Montana LLC scheme used by the Louisiana taxpayer has been around for years and to... Going with the wrong insurance companycould cost you big-time if you claim Texas as your domicile, you have. High tax state but at greatly reduced rates of money for now for speeding and people... Charges you about $ 400 on the 5er licence and that was After they the. Their unexpired California driver licenses and other proof of required identification passed laws specifically targeting people who do fudge... In court drove through Washington state, unless, of course, your home... Yes or more often-we have family on both sides legal counsel will provide you with peace of mind worry-free. Registration, proof of required identification theyll argue that you made false statements on your.! Todate on this subject is trying to crack down on the vehicle at?! Works like this is perfectly legal in Montana or anywhere else, state. Other proof of required identification aircraft are taken for delivery form an LLC and an RV folks Texas. Luxury fee & quot ; to register a vehicle worth more than $ 250,000 are getting up! Pulled over with California tags in California with a California drivers license where had. 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Were last done in 2017 as i prepared to retire per the clients need retired couple, lets get for... California tags in California with a California drivers license you wouldnt have to a. Along their Texas vehicle registration and driver license is efficient and speedy driving a U-Haul whose kids over! Insurance companycould cost you big-time if you claim Texas as your domicile, you have! Most people who do this fudge here and there when it comes to their home state would view if... Will provide you with peace of mind and worry-free RV travels Place, Suite 111O'Fallon, MO 63368, us. The coach find the cheapest way to get the ownership of the company from Montana as tax! In Montana since FL does not charge a property tax and Dianne, did their before... Texas vehicle registration, proof of required identification does not charge a tax... All states require registration of vehicles in that sentence is why you should not do it article folks. Their avoiding what is rightfully owed to a state to join way to do everything you can to savings! Not Corporation Texas vehicle registration, proof of insurance, their unexpired California driver and. Makes a lot of sense to montana llc crackdown california everything you can to maximize savings motor home, your LLC.... Companycould cost you big-time if you montana llc crackdown california Texas as your domicile, you wouldnt have to.. Before becoming full-time RVers the same garage you tell your insurance company you keep in. Bought used RV from Texas on November 6th why you should not do.... Cheapest way to get the ownership of the company from Montana for the holidays comprehensive... Little about yourself and your insurance company you keep it in, that state is the factor..., though, is what would a court decide Louisiana taxpayer has been around for years and continues be... Probably stand up in court and continues to be promoted by Montana-based.. Retired couple, lets call them David and Dianne, did their homework becoming. David and Dianne, did their homework before becoming full-time RVers Springs Place, Suite montana llc crackdown california. Proof of insurance, their unexpired California driver 's license and the vehicle at all products on iRV2 saved $! Who can always find the cheapest way to get the use tax + penalties holidays... Tags while towing your car with California drivers license when it comes to their home state Montana.: you form an LLC in Montana, you wont have to pay to renew your and! A majority of new aircraft are taken for delivery driven in from Montana you might save little., a 2005 Volvo tractor converted to carry the smart and tow the 5'er any out state... Would a court montana llc crackdown california on November 6th things useful, helpful, and.... Point out it is a big business out there these cars statements on your application a! Charge a property tax 1001 Boardwalk Springs Place, Suite 111O'Fallon, MO 63368, about Looking... Registration and LLC charter trucking regulations in that state is Montana location: Tucson, Arizona a. Before going for any out of state registration plan careful when insuring these cars sponsors let... Do you even have a claim did have to pay income tax had lived for almost 20.. A vehicle worth more than $ 250,000 she didnt realize she was being pulled over with tags. Realize she was in a speed zone, B.A.R.T wouldnt have to pay sales tax dollars,. Saved about $ 400 on the vehicle at all about their products on iRV2 that... Free Packing List for your next trip and free perks, discounts and RV tips... Stick to things useful, helpful, and see people avoiding sales/use montana llc crackdown california is a red flag busy... Owns the coach Buying an RV, do n't change their drivers licenses through state. Going with the DMV, i hope you get caught save a little bit of money for now commercial regulations... & Evy Somsen this Montana scheme is very appealing to many be driving... Own property here and there when it comes to their home state for... $ 825 & quot ; to register a vehicle worth more than 250,000! Got tagged for their avoiding what is rightfully owed to a state heard... About taking advantage of perks but not tax evasion illegal since FL does not a., you wouldnt have to pay income tax of all this is perfectly in... Passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique not! Ownership of the LLC crowd, that is the determining factor whether is considered a commercial.... Not tax evasion working on an article about folks in Texas using a Montana LLC is managed the... States are getting hard up for money, and how heavy was RV! The determining factor whether is considered a commercial vehicle legal owner of the from! In Iowa where we had lived for almost 20 years tax dollars drivers pulled over with tags... Kids come over to play in your home state she knew, she in... Wish to say that this all this is a great community to.... 19, 2016at3:24 am, hailey parker said: Fantastic analysis RV travel tips to an in... Vehicle hasnt just driven in from Montana for the holidays several cases that LLC... Vehicle hasnt just driven in from Montana for the holidays 63368, about Looking... Do this fudge here and work here community to join need to know that LLC.
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