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Old 12-18-2012, 05:50 PM   #1
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Dissolving a Montana LLC and lic it in Colorado

Hi I have been full timing for about 3 yrs and and I'm considering dissolving my LLC and licencing the rv in Colorado. In the last 3 years I've been back in Co. less than 2 months. Once to do jury duty and once to get an emissions test on our toad.
Does anyone know if I will have to pay sales tax in Colorado and how much of a hassle it will be?
The other option is to get a CDL and any other appropriate paper work and fees so keep revenue hungry states off my butt.
Thanks
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Old 12-18-2012, 07:28 PM   #2
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I am sure you will have to pay sales tax to Colorado and whatever county and city you will reside in. I work for a company that moves equipment in and out of the state all the time. And each time I have something new to the state, even if it is 3 years old they charge sales tax. And a full previous years ownership tax in addition to the next year's tax. They tell me if I have proof of taxes paid to other states, they will deduct that amount from what they determine is owed...very few other states charge ownership taxes on generators, welders, trailers etc. so they know I don't have a tax statement from another state. Colorado is very unfriendly toward businesses doing intra state work.
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Old 12-18-2012, 10:18 PM   #3
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Why would a CDL do anything with the tax owed? CDL is only for the driver of a commercial rig, not a private RV although some states (CA is one) consider any rig owned by an LLC to be commercial.
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Old 12-18-2012, 10:37 PM   #4
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Why are you considering dissolving the Montana LLC , my plan if I ever upgrade to a more expensive Rv , would be to form a Montana LLC and keep it out of state as much as possible ???
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Old 12-18-2012, 10:48 PM   #5
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......although some states (CA is one) consider any rig owned by an LLC to be commercial.
As much as I wish this was true, I don't think it is. Any link references to support it?
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Old 12-19-2012, 09:06 AM   #6
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We moved to Colorado about 25 years ago and brought in three vehicles at that time. We didn't have to pay sales tax on them but rather just had to by tags for them. I'd call the Colorado Dept of Motor Vehicles and/or use their web site to get the official word.
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Old 12-19-2012, 09:47 AM   #7
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Why are you considering dissolving the Montana LLC , my plan if I ever upgrade to a more expensive Rv , would be to form a Montana LLC and keep it out of state as much as possible ???
Be careful. Colorado Convicts RV Owners for Tax Evasion | RV Business
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Old 12-19-2012, 10:14 AM   #8
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As Bob indicates, CO has been prosecuting owners who are residents of the state with RVs licensed in LLCs. You said
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In the last 3 years I've been back in Co. less than 2 months. Once to do jury duty and once to get an emissions test on our toad.
. I am not a lawyer, but that appears to be a strong indication that you have claimed CO residency all along, and I suspect CO would see it that way too if they picked up on the fact that you did not just buy the RV and that it is being transferred from an LLC that you own/owned. If you have not stored or used the RV in CO, you might have an out. You may want to get some legal advice from a CO lawyer familiar with the situation before you stick your neck out too far. Since you are voluntarily taking the initiative to register you rv in CO, they would likely be more lenient with you (no penalty), but it still may cost you $$$$ in "back taxes." If you are really lucky, they might ignore it ...wishful thinking? Perhaps an anonymous call to the DMV from a phone not connected to you in any way, ask for a supervisor, explain the situation, and see what the response is?
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Old 12-20-2012, 06:49 AM   #9
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Can you still register your rv in SD and get an SD drivers lic.?
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Old 12-20-2012, 08:20 AM   #10
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Yes, but you must be or become a SD resident.

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Can you still register your rv in SD and get an SD drivers lic.?
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Old 12-23-2012, 09:57 AM   #11
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Last time I was in CA I noticed quite a few Montana tags
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Old 12-23-2012, 10:08 AM   #12
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Yes, but you must be or become a SD resident.
Actually, South Dakota allows for a resident of another state to license a vehicle in South Dakota... and you don't even have to have a SD Driver's License. The problem is that doesn't resolve your domicile state thinking you should be registering it with them and paying them all that is due.
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Old 12-23-2012, 09:19 PM   #13
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We always wondered if we could license our boat in s.d. Cause we have a cabin on the ne side of the river but it has a s.d. Address I think you have to live there 6 mo out of the year.our boat stays there always never comes back to Omaha. But we pay taxes to ne.
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Old 12-23-2012, 09:46 PM   #14
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As much as I wish this was true, I don't think it is. Any link references to support it?
Here ya go........Direct from the FMCA story on it.

Legislative Updates
Requirements For LLC-Registered Motorhomes
Is your diesel-powered motorhome registered as an LLC, or limited liability company? If so, you might be required to possess an International Fuel Tax Agreement license or a fuel trip permit when traveling out-of-state.

The International Fuel Tax Agreement (IFTA) is an agreement among jurisdictions in the United States and Canada for the uniform collection and distribution of fuel tax revenues.

According to the International Fuel Tax Association (IFTA Inc.), which oversees IFTA compliance, an IFTA license or a fuel trip permit is required for diesel-powered vehicles that:

weigh more than 26,000 pounds, or 11,797 kilograms;
have three or more axles, regardless of weight; or
have a combined weight (with towed vehicle) greater than 26,000 pounds, or11,797 kilograms.
The IFTA exempts motorhomes used by private individuals exclusively for recreation. However ...

LLCs Not Excluded. LLC-registered motorhomes that qualify under the weight or axle requirements are not exempt from the license/permit requirement — even if owners furnish poof that the LLC was not formed to transact business.

“To determine whether or not a motorhome is a qualified motor vehicle and subject to the tax collected under the International Fuel Tax Agreement, the member jurisdictions will look at how the motorhome is being used,” said Lonette Turner, executive director of IFTA Inc.

“If it is being used in a business endeavor of any kind, it is subject to the fuel use taxes collected under the IFTA, regardless of whether an individual or a company registers the vehicle. Because an LLC is a limited liability company, the term alone indicates that it is a business. This may cause jurisdiction enforcement officers to look more closely at the vehicle.”

About The IFTA. The 48 contiguous U.S. states and 10 Canadian provinces are members of IFTA. Jurisdictions set their own tax rates, and are only required to notify other base jurisdictions of the proper tax rates to collect.

An IFTA license allows the holder to file one tax return for travel in all IFTA jurisdictions. A fuel trip permit allows out-of-state registered vehicles to travel in a state for a limited time without obtaining a license for fuel tax purposes.

Fuel trip permit fees and IFTA license fees, as well as fines and penalties, vary across jurisdictions.

Qualified vehicles driven solely in one state are not required to have an interstate fuel permit or an IFTA license. (A few jurisdictions may require intrastate reporting or licensing for qualified vehicles. Check with individual jurisdictions for more information.)

License Or Permit? IFTA Inc. doesn’t make suggestions regarding licensing, Ms. Turner said. “It usually comes down to a business decision for the operator of the vehicle, whether it is more cost-effective to license or to simply purchase trip permits.”

If you usually operate your vehicle in one jurisdiction only, but make occasional trips outside that jurisdiction, you may wish to consider purchasing trip permits for that occasional travel.

If you plan to travel out-of-state before receiving your IFTA license, you must purchase fuel trip permits for each jurisdiction in which you travel. Permitting services typically can be contacted from any major truck stop.

To obtain an IFTA license, contact the jurisdiction where you are based; that is, where your motorhome is registered. You must complete a form specific to your base jurisdiction. If you qualify, you will receive an IFTA license, two decals, and information about IFTA compliance and record-keeping.

The International Fuel Tax Association Inc.’s Web site, IFTA, Inc., contains a Links page that lists the Web sites of every IFTA base jurisdiction. From the One Stop Shop page, you can select contact information for any IFTA member state or province.

“My best advice,” Ms. Turner said, “is to contact each state you’re going to, or that you’re from, and just make sure to get information ahead of time.”

About LLCs

A limited liability company is a business structure that limits the owner’s personal liability for the debts and actions of the LLC. At the same time, it simplifies the taxation of income by passing profits or losses on to individuals.

Owners of an LLC are called members. Members may include individuals, corporations, other LLCs, and foreign entities. Most states also permit “single member” LLCs, those having only one owner.

All 50 U.S. states allow the formation of LLCs. Applicants must file articles of organization with the Secretary of State and pay the required fees.

Each state has different rules regarding LLC formation. For more information, check your state’s requirements and federal tax regulations.

California and the IFTA

IFTA talk began to circulate in the motorhoming community after an FMCA member reported that California was enforcing the IFTA permit requirement for vehicles entering the state. On Internet forums opinions began to circulate, including whether inspection stations were checking motorhome registrations for LLC ownership.

The California State Board of Equalization (BOE) administers the diesel fuel tax program and the state’s participation in the IFTA. Several inquiries to the BOE produced the same response: Qualified diesel-powered motorhomes registered as an LLC will be considered a business. They must possess a permit or IFTA license, or risk a $100 fine.

Business Endeavor? FMCA member Allan Griefer of Las Vegas, Nevada, heard about the IFTA rumors. He contacted the BOE in California to verify that the IFTA applies to LLC-registered motorhomes even if they do not transact business.

Mr. Griefer received a written reply from Margaret Shedd, legislative council for the BOE.

“Such an (LLC) ownership of the motor coach is considered a business endeavor,” Ms. Shedd wrote. “The individuals that make up the LLC are business partners with limited liability when the motor coach is used by one of the other members of the LLC.”

In her response letter, Ms. Shedd said the BOE will examine the ownership of a qualified motorhome only if visual evidence indicates the vehicle is being used in connection with a business endeavor.

Visual evidence includes business logos displayed on a motorhome or towed vehicle. In such cases, Ms. Shedd said, the board will examine the registration and the specifics of the case to decide whether the vehicle should be registered under the IFTA. "Staff will not examine the registration of a motor coach that does not have visible signs of business endeavors."

Obtaining A Permit, License. In California a fuel trip permit costs $30 and is valid for four days of travel in the state. The permit also allows California-registered vehicles to re-enter California after traveling out-of-state if they are unlicensed for fuel tax purposes. The permit must be obtained prior to entering or re-entering the state.

To order a permit, send $30 (check or money order) for each permit to the Motor Carrier Section, State Board of Equalization, 450 N. St., MIC: 65, P.O. Box 942879, Sacramento, CA 94279-0065.

For a listing of locations that sell California fuel trip permits, visit the BOE Web site, California State Board of Equalization.

To apply for an IFTA license valid for travel in all IFTA member jurisdictions, California residents may call the State Board of Equalization at (800) 400-7115 or (916) 322-9669.

Getting A Refund. In California, if a motorhome owner is assessed a penalty for not possessing valid IFTA credentials or a fuel trip permit, the person may seek relief of the penalty by following the directions on the back of the assessment. If relief is granted, the penalty will be refunded.

A Request for Relief from Penalty form is available on the BOE Web site, California State Board of Equalization, under “Forms & Publications” as a fill-in form.

Lonette Turner, executive director of the International Fuel Tax Association, said each IFTA jurisdiction has the right to handle administrative remedies, such as penalty relief, according to its own laws. "Only if they don't have such a law would IFTA appeal provisions apply," she said.
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