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Old 01-15-2015, 01:59 AM   #1
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Where to Buy and Register

My wife and I are soon buying our first RV and begin full-timing. What is the best option to avoid sales tax and income taxes? Should we buy our RV in a state that has no sales tax and then drive it to a state with no income taxes, register, and establish domicile in that state?

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Old 01-15-2015, 02:30 AM   #2
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Posting from New Hampshire, a state with no sales tax, and no personal income tax on anything but dividends above a certain level. We pay property tax on real estate. We pay two separate taxes on motor vehicles. The state collects taxes based on gross vehicle weight, and the town taxes us on the dollar value of the vehicle. My 15-year-old motorhome costs $850/year to register. Look at the total tax picture and assess what benefit you get from those taxes. Everything that looks free or inexpensive is being subsidized by something else that you are probably being overcharged for.

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Old 01-15-2015, 05:16 AM   #3
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Usually you can't buy in a non sales tax state and register it in a sales tax state without paying the tax. Living in Maine, we are close to New Hampshire. If I go to New Hampshire and buy an auto and try to register it in Maine, Maine will charge me sales tax. However if I go to Mass. and pay a sales tax there, Maine won't charge me the sales tax.
I'm not sure how your state laws are, But that's how it is here.
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Old 01-15-2015, 06:10 AM   #4
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The 3 states where most full-timers regrister and set up their domicile are Texas, South Dakota, and Florida. It comes down to a personal decision as to what works best for you. Do you need Health Insurance?
Do you have investment income?
Do you have more than one motorized vehicle to register?
There are many arguments for all states that you're going to hear. Look at the RV-Dreams.com forum as well. There are several good threads there that discuss the in's and outs of each state.
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Old 01-15-2015, 06:18 AM   #5
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I bought a truck in Virginia and paid 2% sales tax. Two years later, I moved to Vermont that has a 6% sales tax on vehicles and had to pay the prorated difference. While I am happy to buy big items in sales tax free NH, I do tell VT that I shop in NH and online when I file a tax return and they assign a prorated tax to cover it. Your best long term bet is probably to establish residency in a low income tax state and not worry about sales tax as you won't be there much anyway.
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