No Sales Tax on RV Purchase

[RustyJC]

Originally Posted by 2Labs

Here's another wrinkle to this conversation - kind of out of left field - but, if RV owners can legally claim their RV's/Trailers (with bathrooms) as 2nd homes, why do we even have to pay sales tax at all. And what about the full timers that don't have a S&B?

Because, in Texas at least, a RV is a vehicle, not real property (i.e., real estate, like a S&B home on a lot). Vehicles are subject to sales tax and licensing fees. Real property is subject to property taxes. Just because the IRS allows deductions on the RV as a "home" doesn't make it real property.

Rusty

[jimmyjnr]

Originally Posted by Max Hubrich

Here's another LLC story--

Motorhome owner pleads guilty to tax evasion

If you can make Montana your legal residence and get a MT drivers license, vote in Montana, etc it'll probably work.

If you've worked all your life for what you've got- without looking over your shoulder all the time for the tax man- Let your conscience be your guide-

The Rv must have been parked on his property for someone to report him ?

[RustyJC]

Massachusetts has wised up on Montana LLC-registered RVs. See HERE.

Rusty

[Clayobx]

Originally Posted by goldviper

I was looking at Montana and SD, but decided it was to risky. I just paid $20K in taxes and $5500 for lic and reg in Arizona. Next year they told me the lic and reg would be $4500. Call me crazy, but that just is not right. You say Texas is $300, I like that alot better. $4500 is a lot of Diesel. Just Sayin.
Les

We moved from NC because of the personal property tax imposed on all our vehicles, mh, trailers, boat, property tax, personal state income tax. Moving to fl the cost for two autos was approx $300.00' MH $450.00 and very small amounts just for trailer tags and boat registration. Next year the cost for tag renewal on the MH is $100.00! No personal property tax, no state income tax, and a fair property tax. Sunshine, beach, great camping, come on down!

[SarahW]

Originally Posted by 2Labs

Here's another wrinkle to this conversation - kind of out of left field - but, if RV owners can legally claim their RV's/Trailers (with bathrooms) as 2nd homes, why do we even have to pay sales tax at all. And what about the full timers that don't have a S&B?

To my knowledge, no state or municipality requires a buyer to pay sales tax on their primary home, vacation home ... or really any home that is purchased.

In CT I pay an annual property tax bill on my motorhome - just like on my S&B residence. ... and really for what? For most RV owners, the RV/trailer is going to be used outside of your "home" area. Sure, your car is more likely to be used in town - using up town resources, roads, etc - but the RV, more likely to be used and driven outside of your "home" area.

Has no national RV or trade organization thought of, or pursued this avenue on behalf of the RV/Trailer community?

Just some food for thought and conversation ...

You make a very good point. Hmmmmm...

[Richard and Hazel]

In march we will be comming over to the USA to buy a diesel pusher and as non residents we have lots of hurdles and hoops to jump through that must have a reason but just look as though they are there just to make our lives harder ! UK / USA visas only allow us to stay for 6 months at a time, we then have to leave and come back in. If we buy an RV from a dealer it will atract sales tax at whatever rate that state sets but do we still pay sale tax if we buy from a private vendor and or, then do we pay it when we register the RV for "tags" ( number plates to me !). We are thinking of going down the Escapee's route and trying to become Texans but without social security numbers everything hits a brick wall. Why do they allways think you want to get a job and work !! A friend of ours took a driving test over in Florida about 6 years ago without an S/S number , he just left it blank and passed the written and driven tests and came away with a Florida licence. He says that has made his ( driving) life so much easier, but it can't be done now. We are not trying to evade anything but if we have to pay tax I will buy from a dealer as I think we are better protected just incase it all goes wrong after 5 miles down the road.

Thanks

Richard.
Homeless now at last !
Melbourne, Australia, well this week anyway.

[Mr_D]

Originally Posted by amanda_h

Our company does not show a profit and is not licensed nor set up as a commercially viable entity. Therefore, we do not need CDLs (although we have them) nor are we required to pay IFTA taxes. Our motorhome does not have a company name on its exterior nor is it required to have one as we are not commercially viable. It is a "for pleasure only" vehicle. The same goes for the toad.

Haven't tested that theory in CA have you? Ask the CA BOE what their take on it is. I already posted the IFTA info and CA is, according to some posts on the forum, actually enforcing it, whether legal or not.

[SteveSkinner]

Originally Posted by Richard and Hazel

In march we will be comming over to the USA to buy a diesel pusher and as non residents we have lots of hurdles and hoops to jump through that must have a reason but just look as though they are there just to make our lives harder ! UK / USA visas only allow us to stay for 6 months at a time, we then have to leave and come back in. If we buy an RV from a dealer it will atract sales tax at whatever rate that state sets but do we still pay sale tax if we buy from a private vendor and or, then do we pay it when we register the RV for "tags" ( number plates to me !). We are thinking of going down the Escapee's route and trying to become Texans but without social security numbers everything hits a brick wall. Why do they allways think you want to get a job and work !! A friend of ours took a driving test over in Florida about 6 years ago without an S/S number , he just left it blank and passed the written and driven tests and came away with a Florida licence. He says that has made his ( driving) life so much easier, but it can't be done now. We are not trying to evade anything but if we have to pay tax I will buy from a dealer as I think we are better protected just incase it all goes wrong after 5 miles down the road.

Thanks

Richard.
Homeless now at last !
Melbourne, Australia, well this week anyway.

You can buy from a dealer if you wish and still register it on an LLC - no difference.
I have an international licence. It copies my National Heavy Vehicle licence. I thought about getting a US licence and you can with a visa.
I'm pretty sure you can turn up with your visa pass the written and driving test and you are in.
You must have your international licence to get insurance.
Getting insurance discounts - you need a credit rating.

[Tony Lee]

Richard, we bought our MH already registered to a Montana LLC which was transferred into our name as part of the sale deal. No taxes, no inspections and after the first year, permanent number plates with no annual state registration charges. The original owners bought the MH in Florida but did all the paperwork through an LLC office so they didn't pay any sales tax either.

LLC will cost you over $1000 so may not be the best and cheapest way to go, especially since the USA differs from Australia only in that instead of having 7 states and therefore 7 ways of doing things, here they have 50 major state ways of doing things plus another large number of counties with their own peculiarities as well and this means there are several ways for us aliens to own a motorhome.

Insurance has not been a problem either, with the only wrinkle being that the premiums vary depending which state you choose to have your postal address in. Doesn't seem to matter that it isn't the same state as the registration.

When we got the 5 year visa, the officer was adamant that the 6-month clock would start again if we crossed the border into Canada or Mexico for as little as 24 hours, but there is some debate about that and some say you have to go "overseas" for the clock to be reset. We only stay for 4 months at a time anyway so it isn't a problem, but you could easily arrange your trip to include time in both Canada and Mexico if you needed to be over here longer.

[wnytaxman]

It is always interesting when this topic comes up. The amount of information and misinformation spiced with opinions can be somewhat overwhelming.

First off, as stated earlier, an LLC is not a corporation or even a business. For tax purposes, an LLC is what is called a disregarded entity. It is meant for legal protection from lawsuits. We will have clients set up LLC's for all kinds of legal protection, not for tax avoidance or tax evasion.

For those who think you don't pay sales tax on your home.....well, I hate to burst your bubble, but most states tax the materials that went into that home. So yes, you did pay sales tax on your home or there was tax paid on it when it was built. In fact we have clients find out how much sales tax was paid on a new home construction to take that deduction on their federal taxes. Same thing for major remodeling.

Can you legally use a Montana LLC even though you don't live in Montana or you don't fulltime? Yes you can, but you have to COMPLY with your own states DMV laws and be able to PROVE your compliance. Find out the laws of your state in regards to vehicle registration and even residency. Can you comply with your state's laws? If you can and you can PROVE your compliance, then if you are comfortable with your proof of compliance then go for it. If not, then don't do it. Remember in tax the burden of proof is on the taxpayer, not on the taxing jurisdiction. Only in criminal tax fraud cases does the burden of proof rest on the government.

One of my clients tried the Montana LLC route and got caught. He had purchased his rig in Florida and registered it with a Montana LLC. He could not prove that he complied with the NYS laws regarding registration and got nailed for the tax, the penalties and the interest. It can be a very expensive mistake. As they used to say on one of the cop shows, "Be careful out there!" That certainly applies to the use of Montana LLC's.

[Terry43]

We are full-timers an use our daughters address in Tn; we did get TN driver's licenses and had our mailing address changed to hers. No problems at all still had to pay sales tax on our 2011 DS purchased in Arkansas. No state income tax and license plates cost $125.00 per year for MH as well as car. Alabama where we originally lived the plates were over $2000.00.

Good Luck,

terry

[jimmyjnr]

If you study the visa literature you will find that Canada ,Mexico and the bahamas no longer count as leaving .

[Magoogle]

We also used a Montana LLC for our RV. And eventually all of our cars will go as well. According to VA law from what we were told by the lawyers of Montana, You are required to drive the RV out of state every 6 months to be legal. As long as you follow that 1 law, Montana LLC in VA is good to go

[wa8yxm]

I would recommend against it.. You could end up signing title to your nice new house on wheels over to the state and what's more spending some time as their guest at one of the more excuslive hotels, The one where you do NOT get a key to your door.

In another post I just commented on the federal IRS.. State treasury agents are a whole lot like federal IRS types.. And that is the agency that once impounded a couple's children for non payment of taxes... Believe it or not, it happened.

(I do admit the supervisor gave the kids back, and apologized, and the agents who pulled that trick got disiplined for it but ... It still happpened).