Montana LLC ??

[wnytaxman]

Originally Posted by Gary RVRoamer

I don't see any problem, then. Property you own and keep exclusively in Montana - or anywhere outside on NY state, is not subject to NY taxes. If you bought a house there, you wouldn't pay NY taxes on it, right?

Actually the law is that if the rig is in NY at all, at any time whatsoever, it is subject to the sales and use tax. Now to complicate this, you will end up having to provide a copy of your driver's license when you buy the unit. If that information gets provided to NYS then YOU will have to prove that the rig was not in NY at any time. The burden of proof is on the taxpayer, not on the state so be careful.

[nothermark]

I stand corrected about NY tax law.

If buying with an LLC wouldn't the registration be with the state issuing the LLC with the business as the owner so Montana would get the sales tax? I thought that was the purpose of the LLC.

The issue crops up when the plate owner of the LLC for a long enough period of time to notice it or somebody does a stop and check to see why a NY truck is pulling a Montana trailer.

[wnytaxman]

Originally Posted by nothermark

I stand corrected about NY tax law.

If buying with an LLC wouldn't the registration be with the state issuing the LLC with the business as the owner so Montana would get the sales tax? I thought that was the purpose of the LLC.

The issue crops up when the plate owner of the LLC for a long enough period of time to notice it or somebody does a stop and check to see why a NY truck is pulling a Montana trailer.

Montana has no sales tax which is what makes it attractive for a buyer to set up the LLC in Montana which would avoid or evade, depending on your interpretation, the sales tax. I don't really think it's likely to have anyone in law enforcement stop a NY truck pulling a Montana fifth wheel. What can be more likely is a disgruntled neighbor alerting authorities or someone who just has an axe to grind with the owner. Sometimes people brag about not paying the sales tax which tends to tick people off who do pay the sales tax. Paying or not paying the sales tax can be a very contentious issue. Reading through the various posts about the Montana LLC you can see some very vehement opinions about the morality of the LLC and its treatment of sales taxes.

[AudiDudi]

Originally Posted by wnytaxman

Montana has no sales tax which is what makes it attractive for a buyer to set up the LLC in Montana which would avoid or evade, depending on your interpretation, the sales tax..

Montana has just put in place (or will Oct 1) a tax on Motorhomes (and some vehicles) with a value above $150k as I recall. I would check that out before doing an LLC in MT.

[wnytaxman]

Originally Posted by AudiDudi

Montana has just put in place (or will Oct 1) a tax on Motorhomes (and some vehicles) with a value above $150k as I recall. I would check that out before doing an LLC in MT.

From what I have read the additional tax is $825 per year for ten years on any vehicle with an MSRP of more than $300,000. Bennett was leading the fight against this "fee" but the state needs the money and they think this will help. It may end up destroying the cottage industry of forming and maintaining Montana LLC's, but we'll just have to see if that is the case.