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Old 12-02-2019, 03:00 PM   #1
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Taxes

Is the Montana licensing and tax deal worth doing now when buying a rv I hear they charge a $1000 yearly rate now
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Old 12-02-2019, 04:15 PM   #2
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Ive thought about this, looked into it, but not too closely. Ive heard they are “cracking down” on this in Ca - that CHP is actually looking for motor homes with Montana plates. I cant say I put much store in this because I know the Chippies have a whole lot more on their plates than this, but all it takes is that one newbie in rookie overdrive..

Also I detest forms, paper work etc and forming a Montana LLC to avoid sales tax almost seems more trouble than its worth. Guess it depends on how much sales tax. I also wouldn't object to sales tax if they spent it on roads and such instead of (political rant redacted) but of course they don't. Think Id get more pleasure flushing it down the toilet.

So my solution: Im buying a nice ( if fairly useless), little lot in Oregon for close to the same amount. I wont save any money, but at least Ill have something to show for it, and an address in a state with no sales tax.
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Old 12-02-2019, 04:41 PM   #3
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Personally, I feel the Montana LLC is only a good deal for those who full time. They're not violating laws by registering in another state, since they have no home state. With computers cross referencing other states and some looking for the misuse of LLC's, it's just not a risk I would take. If caught, you could be charged with back taxes and penalties.

Even R.Wold's statement about buying and registering vehicles in Oregon is illegal, if he resides more than six months out of the year in California. Again, not worth getting caught.

The argument always ends up being..... is it tax evasion or tax avoidance. There is also a moral argument that few feel is important anymore. When you try to avoid paying taxes where you live, that go to fire and police services, you then short peoples' services in your area, even more if YOU need an ambulance or fire truck.
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Old 12-02-2019, 05:21 PM   #4
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Taxes

I couldn’t agree more with Don!!!!

I, in fact, researched this LLC option. I then did a moral check and realized that I’d be a bit of a hypocrite in terms of complaining about the crack down of public safety pensions, yet I was trying to dodge paying my share...even though it hurt like he$$.

Furthermore, since there is rampant abuse...hence the “Lambo LLC” article...there is a “rat on your neighbor” hotline that was created for those who spot, and are fed up with, this tax fraud.

I just wouldn’t be able to feel comfortable with a Montana plate, as I drove my 6-figure luxury beast up my street.

So...I’ve got a bullet with some deep teeth-marks I carry in my empty pocket.
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Old 12-02-2019, 06:03 PM   #5
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Both Don $ Gizmo have made statements I totally agree with. If you reside in a state with high taxes it’s your choice and morally wrong to illegally avoid them. I’m retired, can easily live wherever I choose. I chose a state with high taxes and I pay them grudgingly, but I pay them and enjoy my area of domicile.

Funny how people like and enjoy the services provided by state and local governments but try everything they can to avoid paying for those same services!
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Old 12-02-2019, 06:46 PM   #6
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Gawd, here we go again.

MT LLC is perfect for some folks. Happily we were one of them. We are full-timers travelling throughout the US. Sold our home in CA. Bought our DS outside CA, and we were certain to remain out of CA for a couple of years.

A MT LLC must be evaluated on an individual basis. Don't do anything illegal to avoid sales tax!

Regarding annual registration, MT is still far lower than CA for us.
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Old 12-02-2019, 07:00 PM   #7
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Gawd, here we go again.

MT LLC is perfect for some folks. Happily we were one of them. We are full-timers travelling throughout the US. Sold our home in CA. Bought our DS outside CA, and we were certain to remain out of CA for a couple of years.

A MT LLC must be evaluated on an individual basis. Don't do anything illegal to avoid sales tax!

Regarding annual registration, MT is still far lower than CA for us.


Yep. And, and DS Don said, ZERO wrong with what YOU...or anyone else without a “home”...are doing!

P.S. In the research I did, I recall there being a legal provision for those who travel more than 6 months. Kinda the same principle of a vacation home write-off.
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Old 12-02-2019, 07:05 PM   #8
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There is another side to this coin. Some states want my domicile and have a tax structure that gives me the opportunity to reside (domicile) in one of those states. I find services are no different than the high tax state I left. High tax states seem to want people who earn big bucks. Those who don't may be stuck/trapped in a high tax state for a variety of reasons. As to the LLC thing, I have had LLCs for a variety of reasons and for a number of years. States must realize they are competing for a person's $s. They then will have a tax structure that is competitive. States that do not care and just want more and more money will find themselves un-competitive and loose residents (current and future). I pay well into 5 figures to my domicile state, and local governments. There comes a time when the "line" is crossed and enough is enough. For me, I would have no problem creating another LLC to avoid paying five figures taxes when buying a coach. One must be well versed in the laws of the domicile state. If one follows the law there is no moral issue.

In Florida, the laws were written for owners of airplanes and large yachts. Motor coaches are included but are small fish in this ocean.
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Old 12-02-2019, 07:43 PM   #9
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Quote:
Originally Posted by CaptainGizmo View Post
Yep. And, and DS Don said, ZERO wrong with what YOU...or anyone else without a “home”...are doing!

P.S. In the research I did, I recall there being a legal provision for those who travel more than 6 months. Kinda the same principle of a vacation home write-off.
I haven't researched it but this was my understanding. I don't spend 6 months in the coach but I do spend at least that much elsewhere. I was audited for the same thing when I had a fairly large sailboat in the Eastern Caribbean and I prevailed easily. My mistake was registering it with the Coast Guard in SF because I wanted that painted on the stern as my home port, even though it had never been in US waters. They weren't happy with me but I was undeniably in the right.
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Old 12-02-2019, 07:48 PM   #10
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From Montana Code Annotated MCA 61-3-321: (7c is the new addition)



(7) (a) Except as provided in subsection (7)(c), the annual registration fee for a motor home, based on the age of the motor home, is as follows:
(i) less than 2 years old, $282.50;
(ii) 2 years old and less than 5 years old, $224.25;
(iii) 5 years old and less than 8 years old, $132.50; and
(iv) 8 years old and older, $97.50.
(b) The owner of a motor home that is 11 years old or older and that is subject to the registration fee under this section may permanently register the motor home upon payment of:
(i) a one-time registration fee of $237.50;
(ii) unless a new set of license plates is being issued, an insurance verification fee of $5, which must be deposited in the account established under 61-6-158;
(iii) if applicable, five times the renewal fees for personalized license plates under 61-3-406; and
(iv) if applicable, the donation fee for a generic specialty license plate under 61-3-480 or a collegiate license plate under 61-3-465.
(c) For a motor home with a manufacturer's suggested retail price of more than $300,000 that is 10 years old or less, the annual registration fee is the amount provided in subsection (7)(a) plus $800.
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Old 12-02-2019, 08:16 PM   #11
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Home State vs Montana Registration

"Dutch Star Don" used the phrase "those with no home state" in reference to Full-Timers, but that is not entirely accurate. We full-time in our RV, but we still need a "home state" for vehicle license tags, drivers license, vehicle insurance, voting, health insurance, and many other things that require an address. We choose South Dakota (after evaluating costs in TX and FL) for those needs.

This may not have anything to do with Montana LLCs, but I just thought I would offer other alternatives to those considering full-timing.
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Old 12-02-2019, 09:14 PM   #12
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Originally Posted by woodosgood View Post
"Dutch Star Don" used the phrase "those with no home state" in reference to Full-Timers, but that is not entirely accurate. We full-time in our RV, but we still need a "home state" for vehicle license tags, drivers license, vehicle insurance, voting, health insurance, and many other things that require an address. We choose South Dakota (after evaluating costs in TX and FL) for those needs.

This may not have anything to do with Montana LLCs, but I just thought I would offer other alternatives to those considering full-timing.
With regards to a MT LLC, your home state has EVERYTHING to do with fhings.

If your home state is South Dakota, or any other state than MT, and you elect to go the MT LLC route, you better know that particular state's sales tax laws inside and out. Not doing so is probably one of the biggest mistakes you can make.

Know what you're doing and educate yourselves on your own situation.
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Old 12-02-2019, 10:07 PM   #13
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It makes no difference if you live in a State for 6 months or more. Your motorhome, if liscensed to a MT LLC is NOT owned by you. It is owned by your LLC. There is nothing illegal about having a MT LLC. I did not go with a LLC because the interest rate on the loan would have been a higher corporate rate as well as the premium on corporate insurance and after 10 or more years it would actually be cheaper to pay the 4% sales tax of SoDakota, my full time domicle which is also legal using a mail forwarding service, and save on financing and insurance.
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Old 12-02-2019, 10:14 PM   #14
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Quote:
Originally Posted by R.Wold View Post
I’ve thought about this, looked into it, but not too closely. I’ve heard they are “cracking down” on this in Ca - that CHP is actually looking for motor homes with Montana plates
.

Well CHP may not be looking, but in Houston, TX there is only one state that maintains an office with 26 full time employees whose sole mission is to audit sales tax due from Texas companies doing business in California. Yep, California.

The reality is that many states are cracking down on folks who live somewhere else and do the LLC to avoid their tax obligation. The penalty when you eventually get caught is severe. Aside from the moral issue, it’s Not worth it
IMO.
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