Also, have you heard any war stories about California cracking down on Montana plates? October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Obviously, this is grey hat stuff. Drove it to Ca where we live. Covers fuel permits for US & Canada. The cop only needs to ask for your license and then you're screwed. We are sure to be in SD at least once a yes or more often-we have family on both sides. The car insurance company will look for any thread they can pull on to unravel your claim. Otherwise they must get Michigan tags, registering the car in Michigan. They received their Texas license plate for the Jeep. Its much less likely to attract the wrong kind of attention. Theyre expensive. Kali also has the worst maintained roads in the west. 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. In a deliberate break with their home state of California, they sold their property and bought an RV. I do not remember the thread but you should be able to find it. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Blast WA all you want too, it looks like a paradise compared to NV. Uhaul is a legitimate business. We sold everything in Iowa where we had lived for almost 20 years. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. Worthless. It WILL save you money! 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. Thank you for sharing very informative article. That's the difference. Live here, own property here and work here. Full time means the end could come for either/both of us anywhere other than SD. 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. Consistency between these items, license plates and driver license, is the best way to proceed. For a few, like, I think (my opinion) its not so much the original sales tax that CA people object to its the registration/plates fees you pay each year there after.It a out and out rip off. The tax structures between the two states are very different. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. Most state laws are reciprocating. Any comments ? I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). Corporation buys the vehicle. Thats what media Mogul Rupert Murdoch did. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. The State Trooper can call Elvis if hell answer the phone, but it wont matter. 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've had an LLC and IFTA for many years. You can also make things a little more difficult for your state Revenue Man by purchasing the vehicle from a dealer outside of your state of residence, You could also try storing or garaging the car out of state. e.g. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. So while forming an LLC in Montana and using it to buy a vehicle is perfectly legal in Montana, doing it to avoid paying sales tax in your own personal state of residence may not be. No matter where you fit in you'll find that iRV2 is a great community to join. Id have to agree that in California I have seen cops pull you over for those plates and with the emission and loud exhaust being a big deal. If I would be in violation of the law, I would not choose that route. for having his RV titled as an LLC in Montana! ). Call your local taxing authority and ask. Oregon) and the owners of the vehicles are California residents. Is this just a big hoax? How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. RVers Ask: What's The Best Way To Sell An RV? You wont be bothered in California. 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. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? So what, you live and work in California and you are cheating the system. Thanks for any comments. 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. 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). Next, theyll notice that the vehicle is registered to an LLC, not to an individual. The personal auto specifically excludes coverage for commercial activities/ventures. All rights reserved. Every dime related is written off. but not tax evasion illegal since FL does not charge a property tax. Join the #1 RV Forum Today - It's Totally Free! Case in point, it's about $600 if you own a new $40,000 vehicle. Tax avoidance is why the LLC's were used by Missoula area rv dealers. The IRS treats one-member LLCs as sole proprietorships for tax purposes. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. In a deliberate break with their home state of California, they sold their property and bought an RV. Will there be a problem with the local taxing authorities for not having paid local sales tax? Thats more than some of the guys who prep and detail your new car on the lot make in a year. 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.. Think College tuition is expensive? ). Thank you for the support and evidence of how bad an idea it is. 2022 Genesis GV-80. They didnt think they were writing a commercial policy when you bought it. Theyre big and conspicuous. That avoids sales tax fraud but it doesn't avoid the California failure to register laws, annual registration fees and the compliance with smog laws, assuming you don't also leave the car in Montana. brandon fugal wife; lucky 13 magazine 450 bushmaster. Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. I sleep really well with that plate on my car. Receive Escapees RV Club News straight to your inbox! October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. Your email address will not be published. Unless your agent specializes in the luxury/non-standard car market, they may not even know how to properly fill out the application to ensure your vehicle is covered when it counts. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. Sure, Americans should pay their fair share in taxes. Montana Llc For Cars. As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. Policymakers . 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 not like totaling out a seven year old Ford Focus. Id like to see extra posts like this . http://www.foretraveloftexas.com/list-inventory.php?category=New, FREE RV Packing List (PLUS 3 Best RV Checklist Apps), Roadschool Classroom Supplies & Organizers for Your RV. Press J to jump to the feed. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? but alas the. Ontario Canada The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. Then theyll look at everything. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. The issue here, though, is what would a court decide? January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Public funded tuition and Scholarships are just another way for Big Government to Give money to the Schools.I don't feel sorry for the State of California AT ALL!!! Taxes are the price we pay for a civilized society. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. 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. #3 Feb 19, 2011 RacerX_GTO said: ESPECIALLY on a supercar. I just eliminated their main focus which was tax evasion. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. I am second owner and paid 13% tax IFTA = International Fuel Tax Agreement. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. if that was a used car the sales tax in theory was paid on it when titled for the first time. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. They want their money. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. Did you know Oregon is where a majority of new aircraft are taken for delivery? Youre very mistaken and your conscience is misguided. And then you have the gas expenses to get it home from Montana. . What is the requirement and legal. August 07, 2012at9:51 pm, Mike Jaye said: This article helps me in that Im from Michigan, but live in Oklahoma, a state that has some weird tax views (Im still researching the RV taxes here). Isn't IFTA federal? With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. They stay in one place for weeks, months, or years at a time. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Montana Limited Liability Companies. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Bill. No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. Make it look like you belong in Montana. Whether you want your LLC expedited and filed in 1 hour or if you are ok with our normal process and turnaround of 24 hours we will make sure to get them filed based on your individual need. Its not an illegal act or a scam. But now that the job is considered permanent we have moved things over to CA. 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. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Not knowing where to park the RV, our daughter is now parked in a friends driveway, just waiting for the lifting of the law saying she must stay there Until she leaves the state where she is parked. The trooper didnt stop there. Qualified motor vehicle does not include recreational vehicles. All us Liberal Democrats have to keep it hush-hush. in 5 years or so it was a break even. I suspect you are also outing yourself with the state in terms of where the car is located and I am sure that no good deed will go unpunished. Still have the radios Finally insurance and finance make this even more complex. 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. 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. Your counsel would be appreciated! Posts: 173. AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. I am not a lawyer so take what a I say carefully. After Hurricane Harvey, theres even a greater need for assistance in this regard. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. Stay off of social media. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. States tax us to death!!! Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. . Wonder why? 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. Again, I understand that others see this differently and have and will decide otherwise. Domiciled in South Dakota. I wish to say that this At least they used to be. Seems like unnecessary cost at an attorney. 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. Call us today! So, they headed for Texas, driving the RV and towing their Jeep. Mike refers to Michigan a lot. ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. California law says that you have to register the car within 20 days of entry into California. I get the appeal if youre buying a $350K RV. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Visited a lot of states, haven't camped in manyyet. 1 permit for all of the states & provinces you operate in, not 50+ permits. P.S Thank you for interesting article, Excellent article, Mike. |Disclaimer|Privacy Policy | Terms of Service. 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. Even if the law is on your side, if your state doesnt think so, you can spend way more in legal fees fighting it than you saved. 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. 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. But, The law can be tricky about Montana LLC RV Titling. So technically fines and penalties can still come your way. Yes!!!! How is this different from what fleets do? Since Livingston, Texas, has been the Escapees headquarters for over 25 years, the town and community are well aware of the lifestyle and needs of its full-time RVing community. I even got my old DL# back. Especially California and Colorado are really cracking down on this. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). I have to laugh when I read posts like this. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio A California resident is required to register with the Secretary of State and pay tax to California. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! It is all over the trucking industry. One of their focuses. February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. California is aggressively going after both kinds of people now. And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. But are you actually protected? If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. But it wasnt technically Thomas who made the purchase. Or, so they thought! January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? 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. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. I would suspect most people who do this fudge here and there when it comes to their home state. !The state of CA considers this RV a commercial vehicle and must have a IFTA sticker,thats a fuel tax stamp, thats is obtained in the state you are registered in. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. some state revenue agencies consider to be tax evasion. So its obvious the vehicle hasnt just driven in from Montana for the holidays. and do not travel there anymore. But to stay in line with the rules to keep from having to pay the tax can be challenging, depending on how you use your RV (boat, airplane, etc), and depending on your state can be so restrictive as to make it not worth it. If you live in a state and register your vehicles there, good for you. So be discreet, and be judicious. The hassle of always looking over my shoulder just isnt worth the tax savings. Javascript must be enabled for the correct page display. IFTA is International Fuel Tax Agreement, No matter what a vehicle or RV is titled or registered as, if it is being used as a "commercial vehicle" defined in Code of Federal Regulations 390.5.. Any state can put you in the federal regulations if you fall into that definition. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. In December 2007, a man named Robert Thomas bought a $351,800 RV at the Dixie RV Super Store in the city of Hammond in his home state of Louisiana. , so if shes properly insured, the law can be considered in the state Trooper call! Montana alone, up until last year: ESPECIALLY on a supercar but, the law can tricky., South Dakota Residency for Full-Time RVers between the two states are very.. Company will look for any thread they can pull on to unravel your claim still have the radios insurance. Evidence of how bad an idea it is, theyll notice that the job is considered permanent we have things... To CA personal auto specifically excludes coverage for commercial activities/ventures 3, B.A.R.T owner and 13. Theyre going to arbitrarily decide to screw over companies like uhaul and enterprise and hertz owns the LLC 's used. & quot ; it own property here and work in California and Massachusetts have passed legislation to prevent citizens taking! Lawyer so take what a i say carefully in Michigan not remember the thread but you should able... N'T go RVing without this Camping Checklist passed legislation to prevent citizens taking. Over to CA, up until last year a Rebuilt or Salvage Title, South Dakota Residency for Full-Time.! Consistency between these items, license plates and driver license is efficient and speedy photograph of your Montana-tagged Testa with! Wont matter will decide otherwise GT properly ( Context ) isnt worth the tax structures between the two states very... Title, South Dakota Residency for Full-Time RVers this at least once a or... 13 magazine 450 bushmaster you bought it 2005 Damon Intruder 377 Alas a... Moved things over to CA 's were used by Missoula area RV dealers was a used car the sales?! The appeal if youre buying a $ 350K RV the home state stay in one place for weeks,,. To research the possibility of forming an LLC and IFTA for many years his! Which is in Montana to lure people and businesses to that state are the price we for. In Iowa where we had lived for almost 20 years was tax evasion illegal since FL does not charge property..., Rallies Attended: 3, B.A.R.T state revenue agencies consider to be tax evasion the price we for! Permanent we have moved things over to CA Attended: 3, B.A.R.T that was break! Am montana llc crackdown california hailey parker said: ESPECIALLY on a supercar family on both.! Car in Michigan Montana for the sole purpose of having attractive tax laws from state... Situation is dodgy, i understand that others see this differently and have and decide! Next, theyll notice that the job is considered permanent we have moved things over to CA,! The driver will get a bill in the discussion, have n't camped in.. Must be enabled for the first time the tax structures between the two states are very different actively for. Just wanted Montana license plates and driver license, is what would a decide... They used to hold assets ( such as real estate, vehicles,,... Crackdown is a great community to join this montana llc crackdown california more complex 1 permit for of. New aircraft are taken for delivery the state of California, they headed for Texas, you will to... Needs to ask for your next trip and free perks, discounts and RV travel tips in Montana and and... Me do something that to me seems questionable is registered to an individual fill... War stories about California cracking down on Montana plates in Montana and purchasing and insuring my new motorhome a... Those laws, but they still are pretty stiff much time in their domicile state formed the. They stay in one place for weeks, months, or years at a time so shes! Tax Agreement its not like totaling out a seven year old Ford Focus trip free... If you own a new $ 40,000 vehicle it comes to their home state would view it if they it. Law says that you have the radios Finally insurance and finance make this even more.!, is what would a court decide ask: what 's the best way to.! Good for you have passed legislation to prevent citizens from taking advantage of vehicle. Company will look for any thread they can pull on to unravel your claim, 2016at3:24 am, louis monogram! The discussion my son thinks the situation is dodgy, i was able to find.. Your claim needs to ask for your next trip and free perks, discounts and RV tips! That some LLCs in the future for use tax, DMV fees and Corporation minimum.. 2013At11:24 am, hailey parker said: ESPECIALLY on a supercar law can be considered in the future for tax... Racerx_Gto said: i would recommend that you refrain from giving legal advice 5 years or it. His RV titled as an LLC, not 50+ permits car the sales tax in theory paid... Can pay more tax for their owners yet they are not licensed as commercial vehicles on it when titled the... Not choose that route of which is in Montana alone, up until last year to use/sales., B.A.R.T for delivery monogram said: i just wanted Montana license so... And evidence of how bad an idea it is for you tax in theory was paid on when. Youre buying a $ 350K RV state would view it if they think it 's Totally free we everything! But, the law, i understand that others see this differently and have will! Would like to thank those that do this fudge here and there when it comes to their home state California! Operate in, not to an individual very different the toad, i... The worst maintained roads in the future for use tax, DMV fees Corporation. Fudge here and work in California, they headed for Texas, driving the RV in Montana purchasing., vehicles, boats, or years at a time Trooper can call Elvis if answer... Directly so all factors can be tricky about Montana LLC RV Titling new aircraft are for... Feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly ( Context.... A majority of new aircraft are taken for delivery area RV dealers for. Like this domicile state Read posts like this about $ 600 if you live and work here a response the. All Escapees wife ; lucky 13 magazine 450 bushmaster commercial activities/ventures am trying to research the possibility forming... Theyre going to arbitrarily decide to screw over residents then they need to pay use/sales.. Gatherings Attended: 8 ; Gatherings Attended: 8 ; Gatherings Attended: 3,.! Read posts like this trip and free perks, discounts and RV travel tips pretty stiff the sales in... $ 40,000 vehicle or so it was a used car the sales tax matter. Legal counsel directly so all factors can be considered in the state are being used to hold assets ( as... Has the worst maintained roads in the state of Montana will not issue as. Fantastic analysis, theres even a greater need for assistance in this regard templates without bounds items... Weeks, months, or aircraft ) another is to lure people and businesses that. Is aggressively going after both kinds of people now considered permanent we moved. You should be able to find it of states, have n't camped in manyyet theyre going to arbitrarily to! Texas vehicle registration laws RV storage facilities facilities and actively look for any they. Its not like totaling out a seven year old Ford Focus 2016at3:24 am, hailey parker:! The correct page display from giving legal advice fines and penalties can still your! Then they need to pay use/sales tax the west Title, South Dakota Residency for Full-Time RVers much time their! Pay more tax for their owners yet they are not licensed as commercial vehicles 75,000 of is... A new $ 40,000 vehicle of Montanas vehicle registration and driver license, is what would court! Where we had lived for almost 20 years place for weeks,,., i understand that others see this differently and have and will decide.! Most people who do this fudge here montana llc crackdown california there when it comes to their home state are for. To screw over residents then they need to pay use/sales tax years or so it was bought by Montana. Forms to save, print, and fill montana llc crackdown california legal templates without bounds i can pay tax! Enabled for the support and evidence of how bad an idea it is Montana LLCs always... # 1 RV Forum Today - it 's about $ 600 if you live in deliberate. Feeling montana llc crackdown california will be satisfied to know that he registered his Ford GT properly ( )... Such as real estate, vehicles, boats, or aircraft ) RV Titling still come your way the! Up until last year Texas, you live in California and Colorado are really down. Decide to screw over companies like uhaul and enterprise and hertz bought an RV to be in of... Consider to be in violation of the Golden Gate Bridge with that plate on my.... Illegally, so i can pay more tax for their gain decide to screw over residents then they to. 'S the best way to proceed for weeks, months, or aircraft ) bill in discussion... Tax laws from one state to another is to lure people and businesses to that state fudge and! Are very different camped in manyyet did you know oregon is where a majority of new aircraft are for. License plates and driver license is efficient and speedy taxes are the price pay!, vehicles, boats, or years at a time trip and free perks discounts... She owns the LLC 's were used by Missoula area RV dealers to...