Community Forums

StuartS · 02-14-2015, 08:50 AM

New Mexico new coach dealer is telling me I can buy a coach from him in New Mexico & register it in New Mexico using my out of state home address. He is quoting me prices & charging me only 3% sales tax. I would be driving on New Mexico tags.
Has anyone heard of this?

pagosajoe · 02-14-2015, 08:52 AM

It's a NM state law providing for the taxation and annual licensing of RVs that must be purchased in NM. That said, your home state may be interested in your getting in-state plates.

When I asked about it, the sales rep said that it was very common for out of state purchasers to take advantage of the NM state law. I'd recommend asking your sales rep for a copy of the law so you fully understand it.

Grey Ghost I · 02-14-2015, 08:56 AM

Most states will give you X number of days to transfer registration to your home state. If you are not always parked where your tag can be seen you may get away with it indefinitely.

Hoegee · 02-14-2015, 09:37 AM

We have NM plates with no issues in TX. We can register in TX for $180 and keep title in NM and may do so for more insurance options.

wnytaxman · 02-14-2015, 09:41 AM

Be aware that you may be setting yourself up to pay your state the difference between New Mexico sales tax and your state's sales tax. Conceivably you could end up paying both states.

chief02 · 02-14-2015, 09:47 AM

When we sold our house in NM and moved our domicile to SD I wanted to keep my boat in NM and keep it registered there. NM DMV said I could not if I dont live there.

usinvestment · 02-14-2015, 10:12 AM

Check with your State DMV before your do this. I'd bet this isn't correct. Never believe a salesmen, they have a vested interest in you believing them. I purchased in CO and live in AZ. I paid local taxes after my purchase, taxes the dealer in CO didn't know about, to the tune of over $1,000. You can't hide from the tax man, they will always find you. You will need to license in your home State, they will want a peace if the action. Salesmen will say anything to make a sale.

StuartS · 02-14-2015, 11:20 AM

I don't listen to salesmen.
I just wanted to see if anyone out there has ever done this. I know people have set up LLCs in Montana to avoid sales tax & have been tracked down by their home states.
I also don't expect that the ones that do have NM tags will come out on this forum & talk about it.

flaggship1 · 02-14-2015, 01:10 PM

When we bought our new to us Bounder in New Mexico - the dealer wanted to do the same thing. We knew we were going back home to Texas and would need to plate it there as we would be there at least 2 more years. We took the paper tag and went on our way. We did have to pay the Texas tax and the dealer in Abq could not collect it - there was no reciprocity between the two states. I think there might have been a tax savings as TX was 6.25% - but I believe I would have paid for NM and TX tags in a 90 day period. I think tge dealer was actually trying to get us to finace TTL. I That didn't make sense and in the Dallas TX area they will come around and let you know you need to register. They drive though storage places - apartments and neighborhoods. But I suspect people do it and get away with it. But I try not to put myself in the "getting away it" category, cause I never seem to get away from anything. Not even as a kid. Lol.

StuartS · 02-14-2015, 02:11 PM

I would only do it if my state said it was okay with them.
I also think my insurance company will require it be registered here in state to write the policy..

gemini5362 · 02-14-2015, 10:03 PM

back in the ice age when i was in the military there was often talk of violation of a three state law. License in one state, Plates from another and driving in a third state. We were always counciled to show our military ID when stopped to avoid that issue. Military was exempt.

Insurance company will want it insured in the state where it will be parked. I would also imagine they will want it tagged there also.

Gary RVRoamer · 02-15-2015, 08:29 AM

Your salesman may be right as far as New Mexcico is concerned, but your real concern is what happens when you bring the RV back into your home state. Nearly all states will require you to get their plates and pay their taxes if the vehicle is kept or regularly used in that state. Typically you have 30 days to comply.

So, decline his advice unless you plan to leave the RV in New Mexico,

gemini5362 · 02-16-2015, 04:48 PM

when i was a realtor we had a meeting on how to get for sale by owners to let us list their houses. One agent said she just went and told them she had a client that wanted their house if they would sign a 6 month listing with her she would show it to the client. Our broker was not really happy when she heard that.

Your new mexico RV salesman kind of reminds me of that agent. Tell you anything to get you to buy and even give improper advice about sales tax to help you be friends with the salesman. How these two stories tie together. Some people will tell you anything they can to get you to buy from them. Find a different salesman that will be more honest with you.

Larrikin · 02-18-2015, 12:03 PM

If you are up to that game, why use NM at 3% ? Use a no sales tax state and an LLC.

That said, you are likely to get caught and pay the man eventually. The high tax states in particular now recognize the high values of motor homes, airplanes, etc., and have developed some good software to find you-- or they contract that search out to their son in laws law firm for a percentage of the revenue. It's not worth the worry over the long haul.