Question How to register in Montana?

[slombo]

How to register in Montana?

 

[Joe Hogan]

Vehicle Title and Registration - Montana Department of Justice

dojmt.gov

 

[scottramer]

I would be very careful, do your self a favor and research your home state if you are not a full timer and have your coach garaged in your home state. A lot of state DMV's have gotten wise to the Montana LLC thing and are starting to crack down.

 

[ARD]

Contact Bennett Law Office. They can help you. They will first provide you with a copy of the relevant portion of the statute of the state you are domiciled. Once you read that, you can then decide whether you want to go forward.

Bennett Law Office P.C.

Homepage

www.bennettlawofficepc.com

 

[Joe Hogan]

BTW, cities like Chicago are wise to this tax dodge and will pull you over to see if your license a Montana, if not why not, etc. if not, expect a ticket or worse.

Should I Register My Vehicle in Montana?

Learn if it's a wise decision to register your vehicle in Montana. While there are a few benefits, they do not outweigh the downside. Get details here.

andersonadvisors.com

The Pitfalls Of The Montana License Plate Scam

I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? There are a couple problems which might crop up if you give it a try.

jalopnik.com

 

[Jireh Financial]

States don't like missing out on the sales tax, registrations and title fees. We have done a couple finance deals when the seller has the MT LLC. One was completed and one fell through. The state of the new buyer has had questions about why the paperwork does not match up with the seller info. Just my opinion but if you need an attorney to help with a purchase, there is something wrong.
Let us know how we can help.
Ken

 

[Kevin D Pem]

Been leaving this alone but!

I agree with much of what Is printed above!
I am not fond of LLCs. I get why some go that route, but they do create hoops on the other side of the journey.

I know how the forest service views those talking advantage of the loop hole, because I volunteered and in talking to the supervisor I was told.

It's simple! I love my state (az) !! I don't love the tax structure, but at the end of the day, I keep everything above board! It's just simpler that way. I don't really have a domicile and use an address In Yuma. I could use any state to register my stuff, but alas, Arizona gets most of my business, so the state gets my money as well.

 

[Joe Hogan]

Beside the ethical tax issues, if you have ever had to deal with State Sales Tax authorities, which I have as a Professional Accountant (earlier career), and a business owner, these folks are very sensitive to being denied the state's piece of your transactions.
It gets ugly, and expensive very quickly if you get on the wrong side of them.
Early in my auditor/accounting career I had the opportunity to attempt restore "in good standing" to a few NYC wantabe 'wiseguy' sales tax problems.
It is unpleasant, very time intensive and expensive.

 

[Joe Hogan]

 

[ARD]

if you need an attorney to help with a purchase, there is something wrong.

This is simply incorrect and bad information. If you are a fulltimer, you can absolutely utilize a MT LLC as long as you understand the statues in the state you are domiciled in. For instance, if you are domiciled in Florida, you will have to wait 6 months before you can enter the state with your rig that is registered in MT. You may even at that time want to reregister your rig in your domiciled state. Using an attorney is to insure that the LLC is formed correctly just as if you were to use an attorney in any transaction. It does not mean "something is wrong."

There is a huge difference between tax avoidance and tax evasion. If, however, you are domiciled in a state for which you own property and reside, then YES, you are taking a risk. States like Colorado and others look for Montana tags and it may take 2 years, but they will collect their sales tax, penalties and more from you.

 

[Joe Hogan]

. For instance, if you are domiciled in Florida, you will have to wait 6 months before you can enter the state with your rig that is registered in MT. You may even at that time want to reregister your rig in your domiciled state. Using an attorney is to insure that the LLC is formed correctly just as if you were to use an attorney in any transaction. It does not mean "something is wrong."

Well now, that is an interesting strategy, Reside in state of choice with no/low sales tax, Take delivery of Rig, vacation for many months, then move back to your chosen state, say Florida, after mandated time has past and register your new Rig there. In Florida there is a vehicle import fee but small potatoes compared to Sales Tax,
Something to ponder....


Maine might just work for me


Regisite Sales Tax Law in Florida:

Sales TaxFlorida’s general sales tax rate is 6 percent. Each retail sale, storage for use, admission, use, orrental is taxable, along with certain services. Some items are specifically exempt. Many counties impose a discretionary sales surtax in addition to the 6 percent state tax. The county tax rates vary from .5 to 2.5 percent, and are levied on the first $5,000 of the purchase price. The $5,000 limit does not apply to commercial rentals, transient rentals, or services. Consumers pay sales tax andany county imposed taxes to the seller at the time of purchase.Use Tax

Unless specifically exempt, merchandise purchased out of state is subject to tax when brought into Florida within 6 months of the purchase date. This “use tax,” as it is commonly called, is also assessed at the rate of 6 percent. Examples of such taxable purchases include purchases made by mail order or the internet, furniture delivered from dealers located in another state, and computer equipment delivered by common carrier. Items purchased and used in another state for 6 months orlonger are not subject to use tax when the items are later brought into Florida. No use tax is due if the out-of-state dealer charged sales tax of 6 percent or more. If the dealer charged less than 6 percent, you must pay the difference to equal 6 percent. For example, if the dealer charged 4 percent, you must pay the additional 2 percent to Florida. Complete an Out-of State Purchase Return (Form DR-15MO) to file and pay use tax. You can download this form from the Department’s website at floridarevenue.com/forms. If the tax owed is less than $1.00, you donot have to file.

 

[Bigblockyeti]

In SC, it doesn't matter what you're buying, be it a motorcycle, car, truck, RV, TT, boat or outboard motor, the state sales tax is 6% or $500, whichever is less. We do have vehicle property tax which I was not subject to in OH but there we paid 6.5%-8% sales tax, depending on county of residence, on top of the purchase price, something that could add up quickly. I would have to pay property tax on a TT if properly registered as a camper in SC but utility trailers with an empty weight of under 2500lbs need not be registered or taxed. They're supposed to be registered for next to nothing if you plan on towing them out of state, NC doesn't seem to mind if they're not GA does occasionally. If I built my own camper on top of a flatbed utility trailer or from an enclosed utility trailer, I would have it registered as only a utility trailer (so it would be plated for out of state travel) for ~$10 year instead of $120-$400 per year for camper property tax, depending on value.

If I bought a pricey RV, I would consider registering it in MT with a newly formed LLC that I would "rent" it from when using it, complete with a formal rental agreement so when asked by the local fuzz in XYZ state, county, city, if the coach was mine, I could legally answer "no" and provide the necessary documents to prove it. Utilizing an attorney to ensure an LLC is correctly setup makes no difference if it's a manufacturing business or one created specifically to limit one's tax liability. It's up to the person establishing that LLC as to whether or not their knowledge, time and potential risk is worth the cost of using an attorney or not.

 

[Jireh Financial]

This is simply incorrect and bad information. If you are a fulltimer, you can absolutely utilize a MT LLC as long as you understand the statues in the state you are domiciled in. For instance, if you are domiciled in Florida, you will have to wait 6 months before you can enter the state with your rig that is registered in MT. You may even at that time want to reregister your rig in your domiciled state. Using an attorney is to insure that the LLC is formed correctly just as if you were to use an attorney in any transaction. It does not mean "something is wrong."

There is a huge difference between tax avoidance and tax evasion. If, however, you are domiciled in a state for which you own property and reside, then YES, you are taking a risk. States like Colorado and others look for Montana tags and it may take 2 years, but they will collect their sales tax, penalties and more from you.

Just for the record, you edited my comment. The first part "JUST MY OPINION" was left out. The full sentence is below. My comments are based on what we have experienced in our business.

"Just my opinion but if you need an attorney to help with a purchase, there is something wrong."

Thank you,
Ken

 

[AbdRahim]

Does Fl monitor all of those Amazon orders? That could be a nightmare.

 

[Joe Hogan]

Does Fl monitor all of those Amazon orders? That could be a nightmare.

This was settled years ago in court, Amazon does charge Sales Tax or Use Tax in the states.
Dodging SalesTax was a big incentive early on for online sales but States refused to give up and won in court.
Also, Amazon does now have Nexus, for tax purposes, in most every state due to warehouse operations.
Smaller online sellers many times are not required to pay Use Tax on out of state sales and leaves it up to the purchaser To settle up with the state.
interesting fact, airlines are required to account for sales over a particular state, food and liquor, and remit sales tax. An accounting nightmare.

 

[JRS]

If you're an actual Full Timer and don't stay in any state for a long period of time, an LLC is a great option. IMHO, you'll be pushing your luck if you don't full time.
We used: Montana LLC | $49 Montana Registered Agent
We registered both the RV and Toad to the LLC. Approximately 1.5yrs later when we were back in FL, we switched our registrations to FL where we're domiciled. At least when we did it, you could register in FL 6 months and 1 day later w/o having to pay taxes. We also had no problems securing insurance.
We've been through and stayed in most states mentioned by those saying not to do it w/o any issues. Been followed and passed by Law Enforcement. Passed through check points (including California west of Yuma) on our way to San Diego where an agent actually entered the rig at the doorway to talk to us w/o any issues.

 

[newmarokie]

Do all other states charge sale tax on rolling stock. Oklahoma does not. We pay an excise tax on all rolling stock. Currently 3.5%. Used vehicles as well. on used, you pay on purchase price or state estimated value which ever is higher.

 

[Bigblockyeti]

SC charges property tax based on some number they come up with using software the taxpayers have bought but aren't allowed to look at. It seems quasi reasonable once a vehicle passes ~3 years old but for a new $70K vehicle it can be brutal, a multi-hundred thousand dollar class A would be substantial but you could get a discount as a second dwelling (I know you can with a travel trailer). The tax is paid along with your registration fee then you get your plate sticker in the mail. It's a bit of a racket but every dollar misappropriated any where by anyone who took it and didn't ask for it is no different.

 

[Jireh Financial]

Do all other states charge sale tax on rolling stock. Oklahoma does not. We pay an excise tax on all rolling stock. Currently 3.5%. Used vehicles as well. on used, you pay on purchase price or state estimated value which ever is higher.

Just for the record - What do you mean by "rolling stock"? The Google search I did is talking about things being hauled by a train.

 

[newmarokie]

anything that is tagged for road use. Motorcycles, trailers, motorhomes, cars, pickups, and road trucks. Anything that is off road and not for farm use is charged sales tax. Non farm use UTVs and construction tractors for example would be charged sales tax.