Community Forums

creativepart · 12-09-2019, 12:52 PM

Quote:

Originally Posted by cinitall

Go to a high end RV resort and you will see that most of the Newells, and Prevost conversions have Montana plates, as the tax burden on owning one of those is huge. These buyers have the money to either pay the tax or fight the tax if they're caught, and many decide to take the gamble.

Quite possible that some have a vacation home in Montana as well. It's a great place to live/vacation in.

cinitall · 12-09-2019, 01:00 PM

Quote:

Originally Posted by creativepart

Quite possible that some have a vacation home in Montana as well. It's a great place to live/vacation in.

Yes!!, we solved our MT LLC issues by moving to Montana

Busskipper · 12-09-2019, 01:01 PM

Quote:

Originally Posted by cinitall

Everyone we know who has been challenged by their "home" state over a MT registration has either lost or settled the cases. The choice requires a careful review of your particular situation. Most would agree that if you're going to license in MT and garage and use your RV out of another state you're probably looking for trouble.

Go to a high end RV resort and you will see that most of the Newells, and Prevost conversions have Montana plates, as the tax burden on owning one of those is huge.

If you assume a $1.7 million sales price , 8.5% sales tax, and an effective income tax rate of 15%( to earn the $1.7 million to buy the coach) then the amount of tax paid for the luxury of buying the coach is around $400K . These buyers have the money to either pay the tax or fight the tax if they're caught, and many decide to take the gamble.

If you can't afford to pay the piper when caught, it might be best not to mess with the tax collectors

jmho ymmv

Just keep in mind that Coca Cola - originated out of Atlanta but is Incorporated in Delaware...........

While that is an example of large - there are many other - probably Millions of out of state small corporations that are registered in Delaware.

With just a little good advice, (Read Lawyer) many do it there... as do many out of Montana, Nevada, South Dakota and Florida. Now if you live in NY, NJ, Calli, or other high tax states they will likely try to track you down.

Solution is to just get out of town for 1/2 year plus 1 day in most.

Getting an Education is the best answer,

JMHO,

wnytaxman · 12-09-2019, 06:33 PM

You are correct about many corporations incorporate in Delaware but that is mostly for SEC purposes rather than tax purposes. Any corporation that does business in another state is subject to the taxation in that state if they have nexus in that state. Now with the Wayfair case decision the definition of nexus has been greatly expanded. Conceivably a dealer who sells a motor home to someone in another state could now be subjected to sales tax reporting into that state. It should be noted that the plaintiff in the Wayfair case was South Dakota. Here we have what has been for years the most friendly location to have a residency and also have a Montana LLC is now chasing sales tax revenue.

Prior to the Wayfair case nexus was determined to be some sort of physical presence in another state. That definition was pretty open but we had a good example with one of our clients. They sold petroleum products by the drum. There was a deposit on the drums. The Commonwealth of Pennsylvania determined that this deposit amounted to a “physical presence” in the Commonwealth and required the company to file and pay corporate income taxes in PA.

My point is fairly simple. If you have a Montana LLC and you are not a full timer you stand a very good chance of being a big target for future and past taxes. Just because someone did not have an issue in the past does not mean that they will not have an issue in the future. The tax landscape changes quickly but with many states now in a financial bind the state tax landscape is full of many pitfalls that can be expensive. Be aware and know your potential exposure.

Ivylog · 12-10-2019, 04:26 AM

I looked into Delaware and for a boat the savings are substantial but for a MH the annual registration costs eat into the savings. You do not see Newell or Prevost with Delaware tags for a reason.

Ray,IN · 12-10-2019, 06:56 PM

When we bought our MH I contacted Bennett and Bennett law firm in MT. I answered his questions truthfully. When we finished the conversation he said he would not handle my pursuit of a MT LLC, as it would be illegal in my state for my particular situation.
If I ever need a law firm in MT that is who I will contact first.

FrankMulliga · 12-12-2019, 03:03 PM

Have used them for six years, great deal no problems.

cheno · 12-12-2019, 03:30 PM

I used https://www.mtvehicles.com/ very pleased

wjijr · 12-12-2019, 03:33 PM

Full-time RVers should check-out https://www.escapees.com.

Road1 · 12-12-2019, 03:39 PM

Quote:

Originally Posted by Crasher

A Montana LLC can be a little tricky at times. If you are stopped in your home state of CA while towing a car with a CA license with a MH licensed in MT and your drivers license was issued in CA, how do you explain that to the LEO?

If you are worried about being stopped with Montana plate with a toad with different plate all you have to do is have a notarized paper stating that you are renting the coach from said LLC perfectly legal......

Jg6750 · 12-12-2019, 04:04 PM

I have had a MT LLC and have been very pleased with there service. They will do everything for you. I have had two RV’s registered by the LLC. If the RV is over $300K MT will charge you a luxury tax and it will cost you about $900 a year to register it. If it is a trailer you pay a flat fee once and get a permanent tag. I just registered a new Airstream and paid $300 for the permanent tag. I am not from CA and certainly would not do anything to be subject to there tax jurisdiction.

Crasher · 12-12-2019, 04:23 PM

Quote:

Originally Posted by Road1

If you are worried about being stopped with Montana plate with a toad with different plate all you have to do is have a notarized paper stating that you are renting the coach from said LLC perfectly legal......

Then you better have the current lease papers to show to the LEO if he asks. Some might go that far, but I would bet few CA LEO's would swallow that line.

USMCRET · 12-12-2019, 05:02 PM

You know, I think it would be very helpful if those who are championing the LLC construct would state whether or not they are full timing. If not full timing, in which state are you domiciled. I’m certain these points make a difference.

desuhu · 12-12-2019, 06:34 PM

We live close to the Oklahoma border and many people in our county have bought property down there so they can register their cars in Oklahoma to avoid the high property taxes on vehicles in Kansas. We had a sheriff once who said he was going to crack down on them, but too many businessmen were doing it and that never happened.