The hassle of always looking over my shoulder just isnt worth the tax savings. Finally insurance and finance make this even more complex. Essentially, it works like this: You form an LLC business in Montana. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). You lease it to yourself. 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. 1 permit for all of the states & provinces you operate in, not 50+ permits. Or maybe you can give others some advice? Worthless. Thats BS. 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. But it wasnt technically Thomas who made the purchase. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. Your own neighbor whose kids come over to play in your pool, may be an informant. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. 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. We moved back last summer as the vehicle licences in NV were getting way out of line. All rights reserved. Think College tuition is expensive? California law says that you have to register the car within 20 days of entry into California. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! This works great in places like Kansas City. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. All Rights Reserved. Is this just a big hoax? 2022 Genesis GV-80. 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. Sure you can form an LLC in Montana and register a vehicle there. Its not like totaling out a seven year old Ford Focus. However, by not spending time in Texas, the place you are claiming as your home, you will undermine your claim that you are domiciled in Texas. You learn something new every day. And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. 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. All rights reserved. How is this different from what fleets do? I do not remember the thread that well since it does not apply to me but I believe that was the topic of it. So is this a business-use vehicle? 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. Full time means the end could come for either/both of us anywhere other than SD. We cant say the same for all the name-brand mass market carriers do. Worthless whiners like this blogger are just that. Just to clarify some of the initial posts. Otherwise they must get Michigan tags, registering the car in Michigan. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. They received their Texas license plate for the Jeep. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. A Montana LLC is no different than filling up your fuel tank, before entering CA, because the fuel taxes are lower in an adjoining state. 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. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. 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. So it makes a lot of sense to do everything you can to maximize savings. The downsides to a Montana LLC are few if you are a full timer. 26. Thanks for any comments. Did you know you can write off the entirety of a private jet purchase still? It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. The issue here, though, is what would a court decide? A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. ). No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. 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. 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. You might save a little bit of money for now. Theyll argue that you made false statements on your application. #3 Feb 19, 2011 RacerX_GTO said: Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. They dont pull out the green eyeshades until they receive a claim. ). Taxes are the price we pay for a civilized society. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Pay sales tax when car is purchased. They make tax collectors drool. They may see no ethical dilemma. Being from Illinois, I would still have to pay Michigan sales tax if I bought from a dealer up there, so maybe low or no sales tax states would be better. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. Florida is one of the few states that does not charge property tax on cars so why would they care? If your main residence in another state, the practice is often considered to be tax evasion particularly in those states that have high RV sales taxes and costly RV license platesand titling fees. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. The LLC registers and plates the vehicle in Montana. You wont be bothered in California. There is no free lunch. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). Youre very mistaken and your conscience is misguided. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. Regardless of where you live. Also, have you heard any war stories about California cracking down on Montana plates? I need to say here that a great many RVers have taken advantage of the Montana law with no issues. Yeah it was expensive, but I never have to worry about this BS. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. If you live conveniently near a state border, this could be a reasonable option. Other wise, Texas doesnt care. 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. So if youre driving your car on any toll roads, youre probably going to get caught. Another technique is to use your Montana LLC for a bona fide business purpose. All rights reserved. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. 4 HOA Rules About RVs That Might Surprise You, The Border Hookups Hit The Road With A New Song. So if youre going to do this, dont make it obvious. Javascript must be enabled for the correct page display. Thank you for sharing your thoughts. 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!!! The IRS treats one-member LLCs as sole proprietorships for tax purposes. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. some state revenue agencies consider to be tax evasion. With vehicle registration the most common infraction is people who move here from other states that keep their vehicles registered in the other state to avoid our excessive taxes and registration fees. Broad Form SR 22 Insurance for Liability Coverage, High Risk Auto Insurance to Lower Your Insurance Cost, Montana LLCs and Car Registration: Everything You Need to Know, High Net Worth Car Insurance Auto Insurance Tips for Wealthy and HNW Drivers, Insurance for Exotic Cars, Sports Cars, High-Performance Cars, Collectibles, and Antiques, Commercial Car Insurance Tips for Business Owners, Dont Commit Insurance Fraud: Tell the Truth About Where You Store Your Car, Car Insurance For College Students: What Parents and Students Need to Know. 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. Just wait til it's FREE!!! Sure, Americans should pay their fair share in taxes. 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. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Testimonials. Shes not doing anything wrong. Have you considered that the money grab by the states isnt exactly moral? So its obvious the vehicle hasnt just driven in from Montana for the holidays. 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. 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. Forming an LLC in Montana is simple. Frequently Asked. Find An Agent Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. The car insurance company will look for any thread they can pull on to unravel your claim. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? Heres how to keep the target sign off your back. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. Bottom line; unless you live IN Montana, DONT DO IT! And unless you do things right from the get-go, their denial of your claim will probably stand up in court. My questions around this are: Location: Off the road after 14 years full timing. Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. Its parked in Oregon. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. Rv, all legal be a reasonable option management/charter company full timer s Response video: https: //www.youtube.com/watch v=Lw2B9spZjrIThe. 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