IFTA = International Fuel Tax Agreement. December 07, 2021at8:10 pm, B Moore said: Note the last sentence Worthless whiners like this blogger are just that. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. Blast WA all you want too, it looks like a paradise compared to NV. Then theyll look at everything. Not every state that goes after its residents who use this tax avoidance strategy succeed. Javascript must be enabled for the correct page display. 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. As a PS. It sounds like anybody with a Montana plate might get pulled over in CA. I sleep really well with that plate on my car. The Montana LLC is the owner. File Articles of Organization. Still have the radios Do you have any responsibility to pay the sales tax to your new state or do you just register the coach like any other vehicle? 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. Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to house their RV so they wouldnt have to pay sales tax. Ready for a quote? It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. Found it odd that the GMC Sierra I rented had AZ plates. Franchise Opportunity 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. Regardless of where you live. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. Stay up-to-date with Club news, blog posts, events, and more. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Heres how to keep the target sign off your back. 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. So is this a business-use vehicle? 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. You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. Have you considered that the money grab by the states isnt exactly moral? 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. The hassle of always looking over my shoulder just isnt worth the tax savings. 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. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. 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.. 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.. the whole thing, for reference. 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. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. But the land is an asset offsetting the mortgage. Still, I can only assume this is why a lot of U-Haul's equipment is so old. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. An LLC is considered a legal entity, able to buy and sell property. 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. 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. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. Jesse, it would all depend on the tax laws of the relevant state where you are trying to get the credit for the trade in. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. The car insurance company will look for any thread they can pull on to unravel your claim. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. 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. Forming an LLC does not create a business nor does it create a corporation. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. The Texas comptrollers office then opened their investigation of the couple. Susie and her husband, James Frost, reside in Livingston, Texas. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. 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! Tell us a little about yourself and your insurance needs. Phil & Evy Somsen Thank you to everyone who responded. FAR too many ways to get bitten in the butt. Is there a time factor involved? |Disclaimer|Privacy Policy | Terms of Service. Hi Steve. Oregon) and the owners of the vehicles are California residents. The State Trooper can call Elvis if hell answer the phone, but it wont matter. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Corporation buys the vehicle. Its tough being a minority here. (Truly, I forget).. Pay sales tax when car is purchased. Hours of Operation. This Montana scheme is very appealing to many. Theyre big and conspicuous. some state revenue agencies consider to be tax evasion. One is a result of the way the business works, the other is tax evasion. This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. Then they send people out to find the cars. That way I'll have a chance that it'll get lost. Planning to use Montana state to register our RV To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. I don't cheat on these things but will be d@@med if I report someone. Good thing she has friends. Even if you want to form your LLC yourself, you can still hire us to be your Montana registered agent for just $49 a year. and do not travel there anymore. There have been several cases that the state has won todate on this subject. Um no thanks. They know the game. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. But I am the legal owner of the LLC. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. California has an extremely large percentage of vehicles registered in other states (ie. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Thats when our law firm received the call from the frantic couple. Its parked in Oregon. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. Its not an illegal act or a scam. I am second owner and paid 13% tax Where you happen to own a home and have a drivers license? Domiciled in South Dakota. What business do you actually conduct in Montana? The CHP warns participants not to confront the driver or write out a report while you're driving. Also, have you heard any war stories about California cracking down on Montana plates? California law says that you have to register the car within 20 days of entry into California. Did you know you can write off the entirety of a private jet purchase still? The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. First, be careful trying the Montana LLC technique to save taxes on an RV. All this is perfectly legal in Montana. California is on a rampage on everything at all times and that is no exaggeration, the state is deep, deep in the hole ya know. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. 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. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. I know, I know, some will say the Montana LLC is the legal owner. The trooper didnt stop there. 1house has been rented for 4years the house we currently live in will be renting in 10days. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. What is IFTA? You don't buy the motor home, your LLC does. We cant say the same for all the name-brand mass market carriers do. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. The downsides to a Montana LLC are few if you are a full timer. 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. As a lawyer advising people about establishing domicile in Texas, I can guarantee that the best way to disprove your claim of Texas domicile is to spend too little time in the state. But we rent both of our houses. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. 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. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. Totally agree. The taxes also provide funds necessary to keep Texas roads in good repair. Required fields are marked *. 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. 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. Part of MOTORSPORT NETWORK. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you wont face felony charges for tax evasion. Bank and insurance company need to know that the LLC owns the coach. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. 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. Besides this, many insurers have been known to frown at covering an RV that is titled in Montana when the owner of the LLC lives in another state. Taxation in this country is out of control, and people are fed up with it. JMO. (Sorry, Hawaii residents!). If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. They were free to travel whenever they wanted and wherever they wanted, without worry. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". Seems like unnecessary cost at an attorney. Great article! 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