So technically fines and penalties can still come your way. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! 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. Its parked in Oregon. . Thank you to everyone who responded. The tax structures between the two states are very different. Nevertheless, lots of higher-end car and RV owners have assessed the legal and enforcement landscape, and believe the tax savings to be worth the risk: Go to luxury or sports car shows outside of Montana, or any RV park well away from Montana, and chances are good youll see a lot of Montana plates. Choose a subscription to save and fill them out at any time effortlessly. Do you need advice on what products to buy? Since the LLC never paid the sales or use tax but it still could be registered locally. CHP clamping down on drivers who avoid California fees. 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. Case in point, it's about $600 if you own a new $40,000 vehicle. States tax us to death!!! RVers Ask: What's The Best Way To Sell An RV? 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). If a commercial policy is used it does not provide the broader coverage of a personal policy.. We have been full time RV for 2+ years. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. Establishing a Chain of Ownership for Your Vehicle 2. Is there a loophole for those who do Montana LLC RV Titling? Yes, I get irritated when I see this. Regardless of where you live. The more valuable the vehicle, the greater the tax savings. According to Jalopnik, one way Georgia tax officials have caught up with owners of Montana-registered cars is by going through Montana registrations looking for cars with custom plates like MTBULLD0G.. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. Forming an LLC does not create a business nor does it create a corporation. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. 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. 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. 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. There are a lot of others doing it too. Part of MOTORSPORT NETWORK. Shes not doing anything wrong. 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. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. I found this line of thoughts, decided that our daughter should read it and save it. The state is getting theirs. 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. And theyrepissed. So technically fines and penalties can still come your way. ), you could have a big problem: The underwriters and attorneys reviewing your claim will immediately notice theres a disconnect between the name on the policy and the ownership of the vehicle. 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). Theyll argue that you made false statements on your application. Texas Forever Six Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas! I purchased a new coach two weeks ago and looked at doing the same. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. U-Haul is headquartered in Phoenix, so it makes sense. Make it look like you belong in Montana. The big reason I am not going to go the Montana route should I buy a new RV is because, I think, it borders on the unethical. Absolutely. Another technique is to use your Montana LLC for a bona fide business purpose. This Montana scheme is very appealing to many. Oregon has also enter the tax battle as they substantially fined and shut down an agent who was creating LLC's in that state which also has no sales tax. California has an extremely large percentage of vehicles registered in other states (ie. Toured the Foretravel factory this spring. If you purchase within Texas, in order not to have to pay sales tax, you have to sign a Tax Exemption Certificate that basically says you will remove the vehicle from the state and not bring it back. Visited a lot of states, haven't camped in manyyet. January 05, 2016at12:07 pm, Rico Muscatel said: For full-timers without a permanent residence, you can pick up a mailbox in Florida and be good to go. Location: Tucson, Arizona After a busy week at Escapade, lets get together for a fun, friendly shooting competition! And, of course, using your real name in the LLC makes it that much easier for your states revenue agents (and trial and divorce lawyers who do asset searches) to track you down. Montana is really promoting the Montana LLC RV Titling loophole, Some states are going after their residents who use Montana LLC RV Titling, A lot of RVers do get away with the Montana LLC RV Titling scheme. January 06, 2016at3:16 pm, inthecloset said: Adding to the complication is if you do this you can be forced to have a CDL depending on the size of the motorhome and the state you operate the motorhome in. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Wikipedia has good description to begin understanding IFTA. Totally agree. It doesn't pay to cheat the tax man. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. There is only one significant pro - the savings in sales tax dollars. Did you know Oregon is where a majority of new aircraft are taken for delivery? Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? 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. Dont break the law in your home state. Did you know you can write off the entirety of a private jet purchase still? FAR too many ways to get bitten in the butt. 26. Then theyll look at everything. Florida is one of the few states that does not charge property tax on cars so why would they care? 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. 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. Some critics note they have set up tip-lines with rewards for people who spot RVs with Montana plates parked in storage yards or driveways for long periods of time. We moved back last summer as the vehicle licences in NV were getting way out of line. But full-boat sales taxes on private party sales are ridiculous. For example the LLC would purchase a $250,000 motorhome and then turn around and lease it for $200 per month to a Michigan resident. But I am the legal owner of the LLC. The personal auto specifically excludes coverage for commercial activities/ventures. Essentially, it works like this: You form an LLC business in Montana. Hours of Operation. And they will be happy to collect a nice commission on the premium. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. 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. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Montana LLC. It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! See, when it comes to the specialty car market, you may not be in good hands, after all. Heres how to keep the target sign off your back. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! 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