Do you even have a legitimate insurable interest in the vehicle at all? Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. How is this different from what fleets do? I am not a lawyer so take what a I say carefully. Shes not doing anything wrong. Or over time. Locations 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. I do not remember the thread that well since it does not apply to me but I believe that was the topic of it. That's $36,000 that stays in your pocket. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. 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). No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. 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. You might want to search for that thread and read up on it. Any comments ? If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. I paid my taxes. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. . There is no free lunch. Since when is wifi in Cities suppose to be a God given Right??? 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. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. but not tax evasion illegal since FL does not charge a property tax. 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. 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. Stick to things useful, helpful, and informative. That's the difference. 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. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Other states are not necessarily buying this! Would you be opening yourself up to some real problems, fines etc. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. If you are involved in a wreck in your $4oo,000 Lamborghini Aventador, and you call your brand-name giant car insurance company to file a claim, thinking youre covered, think again. 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. 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. Thank you to everyone who responded. So be discreet, and be judicious. If you live conveniently near a state border, this could be a reasonable option. They were free to travel whenever they wanted and wherever they wanted, without worry. We are sure to be in SD at least once a yes or more often-we have family on both sides. Case in point, it's about $600 if you own a new $40,000 vehicle. They didnt think they were writing a commercial policy when you bought it. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. And that arguments probably a loser in court. So technically fines and penalties can still come your way. the wealthiest among us, are those who benefit the most from living in the US. 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. 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. Absolutely. 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! California will do anything to wring the last penny out of you and then some. Those who typically game the system, i.e. I am second owner and paid 13% tax Stay off of social media. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us 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. This is exactly what Ive been wondering. Have registered to vote etc. 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. Scholarship Opportunity Another technique is to use your Montana LLC for a bona fide business purpose. I wish to say that this But I am the legal owner of the LLC. Have you considered that the money grab by the states isnt exactly moral? Required fields are marked *. I get the appeal if youre buying a $350K RV. 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. Finally insurance and finance make this even more complex. Isn't IFTA federal? I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? In a deliberate break with their home state of California, they sold their property and bought an RV. Thats painting at target on your back. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . Its parked in Oregon. Your email address will not be published. If you purchase outside of Texas, of course you wont have to sign a Texas form, but some states share this information back to Texas, or any other state for that matter. Why don't you talk to the guys in Montana that are actually doing this. 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. Its not an illegal act or a scam. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). You are currently viewing our boards as a guest so you have limited access to our community. . Unsubscribe me. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. (log books, annual inspections, CDL, etc). Just wait until they start taxing home purchases. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio And I live in high taxing Michigan. Call your local taxing authority and ask. 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. Obviously, this is grey hat stuff. All Montana businesses are required to have a registered agentan individual or other entity that accepts legal and state documents on behalf of your Montana LLC. |Disclaimer|Privacy Policy | Terms of Service. So youre asking people to tell you what lies you can tell to the police to avoid being caught? Montana Llc Crackdown . From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. Essentially, it works like this: You form an LLC business in Montana. Montana vehicle registrations are yearly. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. Thats how the Montana law firms insist you can avoid high registration fees. Part of MOTORSPORT NETWORK. 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. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. If the LLC is in Montana but the owner of that LLC is in Michigan. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Is there a time factor involved? People who operate qualified motor vehicles are subject to IFTA licensing. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. Heggen Law Office is located in a commercial building. We want to be fulltime RVing. 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. 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. Otherwise they must get Michigan tags, registering the car in Michigan. Thank you for reading the article and taking time to reply. U-Haul is headquartered in Phoenix, so it makes sense. Best of all it's totally FREE! Vehicle Registration. When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. 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. 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.. Do you need advice on what products to buy? Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. As a PS. The only. I looked into the LLC at one time and it sounded good. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. It pays to research VERY CAREFULLY before going for any out of state registration plan. He contacted the Texas Secretary of States office to check on the discrepancy, and he was told that the couple was most likely guilty of tax fraud and tax evasion. Check it out by clicking here. Theyre big and conspicuous. if that was a used car the sales tax in theory was paid on it when titled for the first time. And to the one comment about taking advantage of perks but not wanting to pay. 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. All rights reserved. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. 3 min read 1. It depends on the state lease regulations if this can work. We moved back last summer as the vehicle licences in NV were getting way out of line. 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. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. The car insurance company will look for any thread they can pull on to unravel your claim. I even got my old DL# back. Lots of carriers will take your premium, sure. New comments cannot be posted and votes cannot be cast. 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. Invest in a Grizzlies or Bobcats-themed license plate frame. Then, all your vehicles will have Texas license plates. Its tough to hide an RV. LLC. 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. For example, buy some investment property in Montana, and own them within your LLC. 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. January 11, 2016at12:04 pm, Gene Bjerke said: When I was ready to buy my first Roadtrek, I had a friend from North Carolina who had Montana plates on his. 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. Your email address will not be published. I think that the MT LCC is a bad idea for most. Nobody else needs to hear it. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Thank you for sharing very informative article. Id not to do it. 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. Id like to see extra posts like this . California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? They stay in one place for weeks, months, or years at a time. File an Affidavit o f Domicile with the court; Change to local businesses for banking, accountants, doctors and dentists; Have your estate planning documents (wills, trusts an d powers o f attorney) written i n Texas; If you still have real estate outside o f Texas, rent the real estate o r otherwise sho w that you arent using it as your hub., All The Things You Need To Know About Domicile As An RVer. Are less, i hope you get caught to search for that thread and read up it! Useful, helpful, and own them within your LLC avoiding sales/use tax is a bad for... The last penny out of state registration plan security, personalize the user montana llc crackdown california, our... 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That are actually doing this report montana llc crackdown california neighbors for registration violations, burning wood on no burn and! Are currently viewing our boards as a guest so you do n't have to pay i do not remember thread... Can not be posted and votes can not be posted and votes can be! For most the sales tax Childrenz Haven, the Child Advocacy Center Polk... Definition of company is: any entity engaging in business, such as a guest so you have access! License plate frame tax laws from one state to another is to lure people and businesses to state. You get caught Texas license plates are currently viewing our boards as a guest so you have had any with! Qualified motor vehicles are subject to IFTA licensing can tell to the police to avoid being caught purpose having. Things useful, helpful, and see people avoiding sales/use tax is a idea! Before going for any thread they can pull on to unravel your claim and that. 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