Community Forums

dcoff12 · 08-29-2007, 10:34 AM

I was just reading the posts on excise tax on motorhohes in Massachusetts. Thought I would post the information that I just learned yesterday about the rate used in Indiana on property tax for motorhomes - it is 3.2964 times the purchase price of your coach the first year and I am not clear what it is based on after the first year. This seems to be extremely high ($2500.00) for my coach and it is not considered an expensive unit? I also understand that if the coach is in Indiana on May 1 of each year and if you can not prove that the unit is outside of the state of Indiana for than 50% of the time then you have no recourse! Does anyone have any suggestions that are legal!!

Many thanks

dcoff12 · 08-29-2007, 10:34 AM

I was just reading the posts on excise tax on motorhohes in Massachusetts. Thought I would post the information that I just learned yesterday about the rate used in Indiana on property tax for motorhomes - it is 3.2964 times the purchase price of your coach the first year and I am not clear what it is based on after the first year. This seems to be extremely high ($2500.00) for my coach and it is not considered an expensive unit? I also understand that if the coach is in Indiana on May 1 of each year and if you can not prove that the unit is outside of the state of Indiana for than 50% of the time then you have no recourse! Does anyone have any suggestions that are legal!!

Many thanks

RedneckExpress · 08-29-2007, 01:50 PM

Move to another state?

dcoff12 · 08-30-2007, 11:12 AM

Thanks Joseph but that is not an option currently. I would like to learn of some true alternatives that others have utilized (Montana LLC and other avenues).

Dennis

GaryKD · 08-30-2007, 12:53 PM

Hi Dennis,
Based on the OP statement that one must prove the RV was out of the state at least 50% of the time, has most likely, put a damper on replies. This is the first post to make that statement. Unless one purchases an RV lot (an appreciating asset?) and leaves the RV there the solution is a bit difficult.

DriVer · 08-30-2007, 01:31 PM

If you leave your RV in another jurisdiction for 6 months it might be likely that you would be liable for property or excise tax in that state. I know Florida does not have a tax on mobile property. When I was staying at an RV park in Connecticut an auditor came around and took notes and subsequently the bill was in the mail.

Find out the laws in the out of state district where you may want to store your motorhome.

dcoff12 · 08-31-2007, 06:01 AM

Gary
I appreciate your response and the more I research this topic the more your comment appears to be right on the mark "the solution is a bit difficult". The reason my opening post contained the information that it did was from reading a couple Indiana Board of Tax Reviews that are posted on the internet.

Driver
Thanks for your input. At this point I am not sure that I actually have any good alternatives and I will of course pay my taxes - the amount was just a BIG surprise to us as new motor home owners. We had previously owned a nice hard sided folding camper for several years with no major taxes due. We actually borrowed a beautiful 35' Vectra motorhome for vacations for the past 5 or 6 years that was owned by my wife's parents. Didn't fully understand all of their expenses on that motorhome - we were fortunate and they were very generous!

Dennis

ParTheCourse · 08-31-2007, 06:29 AM

Whisper please, before NY hears about this, they tax everything else.

RRT2 · 09-05-2007, 05:58 PM

Dennis: when we got our '04 Suncruiser in June 04, it was '06 before we paid on it. The rumor I heard was the low NADA value (or something similar) was used to figure the base $$ amount.

It hurts like the very devil. 6% sales tax, then property tax to boot. I wanted to do a Montana LLC, but we were informed that there are not many banks that will finance those--plus interest rate would be higher. Sooo, we didn't go that route this time on our more expensive DP. Guess we'll wait and see how that one hits. My DH wants to be 'legal'! Bah, humbug!

We will be gone from home more than 6 months this year....'on the road', or parked for 3 months, or whatever...and not home on the 'magical' March 1. Not sure what to do...it IS a dilemma!!

Rose

dcoff12 · 09-07-2007, 06:40 AM

Rose

Your case is a bit like ours as we purchased the coach in September of 2006 and have not been billed to date. I feel certian we will get our property tax bill on the coach in the future. Did you have to play catch-up and pay taxes on your unit back to the 2004 purchase date or did they just bill you for the one year in 2006?
On another post that I had read somewhere it was suggested that an excellent source of information on this and other financial issues related to motor home ownership for full timers was a book "Selecting An RV Home Base 2007". It does have great information on "State Residency Requirements - RVer's Guide to Federal and State Taxes" although it does not cover property tax at all or I have missed it completely (maybe because property tax is billed by the county in Indiana and as well as in other states)?
It is a rather expensive issue for coach owners in many states. I do wish there some reasonable alternatives but if there are folks are not speaking up on this one.

Dennis

RRT2 · 09-07-2007, 02:42 PM

Dennis: your first property tax bill will be due in May '08. Depending on your tax base, an '05 shouldn't be that bad. That being said, any property tax on top of sales tax we have to pay is a PITA.

We're not full timers (my DH soooo loves mowing that acre of ground!)...that opens up another whole kettle of worms. . . I keep telling DH we should buy 'property' in Alabama, and switch our residency. They have tax on MOHOs but no state income tax! OY! One needs to be an attorney!

Rose

cvrvr · 09-08-2007, 01:07 PM

When we bought our MH in 2003 we had to pay 8.25% ($7000) plus a license fee of $627. The license fee gradually goes down. This year is was $410.00. The license fee included a $6.00 tire fee. I never have figured out what that is for. Only in California.

George

Tom N · 09-08-2007, 04:12 PM

NY hit me with a $2.50 per tire fee for a total of $15.

-Tom

Ray,IN · 09-11-2007, 03:09 PM

Dennis, we have a catch 22 here re: property tax and vehicle licensing. If you didn't pay the property tax on your RV, BMV would deny a license plate. Did you hear the comment by the chairman of the IN senate? He told a reporter he was trying to nip the effort to repeal property tax in the bud, before it became out of control.