Community Forums

hanko · 11-22-2012, 12:38 AM

sounds easier to just pay the tax, unless you live in Ca

jimmyjnr · 01-20-2013, 08:17 PM

We live in CO but still own property in TN , could I get a TN drivers license and register a new to us DP in TN , in would be stored at private gated facility when not traveling ?
Thanks to everyone for your thoughts and advice

KIX · 01-20-2013, 08:28 PM

There is a huge difference between avoiding tax and evading tax. Taxing authorities are very hungry now. So, do all your homework and make certain you are justified and legally entitled to avoid paying taxes via your LLC. You may well have to defend your actions.

2Labs · 01-20-2013, 08:29 PM

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 ...

BobGed · 01-20-2013, 08:33 PM

Quote:

Originally Posted by jimmyjnr

We live in CO but still own property in TN , could I get a TN drivers license and register a new to us DP in TN , in would be stored at private gated facility when not traveling ?
Thanks to everyone for your thoughts and advice

If your legal state of residence is Colorado where you would normally park your coach, I would be very careful.
Colorado catches RV sales tax evaders

Clayobx · 01-20-2013, 08:46 PM

The states and Feds have a very bad term 'TAX EVASION'. All doors of opportunity are then opened to govt. prosecution, back taxes, penalties etc. not all states are presently perusing Montana LLC. As mentioned, Washington, Maryland, and others are gaining momentum. I thought about it then did the study. Just too risky!

Clayobx · 01-20-2013, 08:53 PM

Quote:

Originally Posted by jimmyjnr

We live in CO but still own property in TN , could I get a TN drivers license and register a new to us DP in TN , in would be stored at private gated facility when not traveling ?
Thanks to everyone for your thoughts and advice

You would have to change your permanent residence to Tn. Along with all necessary drivers license and much more. Not an easy task just moved from NC to Fl. Very complicated and expensive!

biker art · 01-20-2013, 09:15 PM

No sales tax in Or.I just payed a reg.transfer fee $177 .Reg for two years is $235.I dose go bu mh value plus how long it is

Mr_D · 01-20-2013, 09:29 PM

Quote:

Originally Posted by Clayobx

The states and Feds have a very bad term 'TAX EVASION'. All doors of opportunity are then opened to govt. prosecution, back taxes, penalties etc. not all states are presently perusing Montana LLC. As mentioned, Washington, Maryland, and others are gaining momentum. I thought about it then did the study. Just too risky!

WA isn't "just gaining momentum", they redacted case I have is from Nov 2006.

Mr_D · 01-20-2013, 09:30 PM

Quote:

Originally Posted by biker art

No sales tax in Or.I just payed a reg.transfer fee $177 .Reg for two years is $235.I dose go bu mh value plus how long it is

But an OR resident also pays 9% income tax on all income whether earned in state or not, although that is up in the air too as people are fighting it.

amanda_h · 01-20-2013, 09:56 PM

There is so much just plain misinformation about the Montana LLC issue. Please do your homework and our advice is to consult with one of the Montana law firms (i.e. Bennett in Missoula, etc.) that help you set up your company as to the requirements of each state. You have to follow the laws of the state that you call your domicile if you are to successfully utilize going the Montana LLC route.

As others have said and implied, it's probably not worth even considering unless you're full-time and don't maintain a residence with a stick house where you store your motorhome. It's too difficult to stay within your state's laws if you spend the majority of your time in your state of domicile. As others have said, your neighbors could get upset and turn you in as you are not paying taxes that you really should be paying to your home state. From an ethical standpoint, if you are in your home state the majority of the time, you should be paying taxes (sales tax and registration) to your home state.

With that said, we've utilized a Montana LLC for years because we are always on the move and are hardly ever in the state we call our domicile (where we hold our drivers' licenses). We have no stick house we call our residence nor park/store our RV at any time in our state of domicile and spend very little of our time there. Therefore, we have a clear conscience in using a Montana LLC in order to keep our vehicles registered. We are NOT breaking any laws! We are perfectly legitimate if any LEO pulls us over and sees we have drivers' licenses in one state and are driving vehicles registered in another state. And technically, we don't own those vehicles, the company we own, owns the vehicles. We are driving "company cars/vehicles."

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.

Both our mothorhome and toad have Montana plates. However, if your motorhome has Montana plates and your toad has the plates of your state of domicile, it could call attention to your home state's LEOs (and, again, your neighbors if you are living in a stick house the majority of the time). However, even so, if you are abiding by the laws of your home state that dictate how and when a vehicle is required to be registered in that state, you can conceivably be perfectly legal.

So again, do your homework and get legal advice before going this route. Having a Montana LLC to register your vehicles isn't automatically breaking the law as some seem to be implying. It isn't for everybody but will work out fine for some.

-harry

BobGed · 01-20-2013, 10:10 PM

If I was full-timing I would take a serious look at South Dakota. Taxes by State

goldviper · 01-20-2013, 10:23 PM

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

Max Hubrich · 01-21-2013, 06:55 AM

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-