Community Forums

UKGuy · 04-06-2014, 12:25 PM

OK. I have a question. We all know about Montana LLC's and the associated problems around sales tax etc., but what about a bone fida personal purchase by an individual?

If I have a Montana drivers licence (which I believe I can get as a non-US citizen, with a Montana address, then in theory, I should be able to register a MH there and not have to pay sales tax? As I don't have a US 'income' then state income tax shouldn't be an issue. I don't know about property taxes.

However, the MH is likely to be stored out if state when not in use but not necessarily at the same place each time and I am aware that storage location comes into play sometimes when it comes to sales tax etc.

Am I missing something somewhere or does this sound feasible? Is there anything else I am missing?

I know the Montana thing has been beat to death on numerous occasions but I just want to either put this thought out if my head or keep it open as a viable option. And just for those who think I should pay up, anything I save on MH sales tax would be spent elsewhere in the US.

palehorse89 · 04-06-2014, 12:32 PM

A phone call to one of these places would have better results to your questions ,
Montana RV Registration | MT Registered Agents | Tax-Free Montana LLC : Deer Creek Corporate Services

Bennett Law Office P.C. - Bennett Law Office P.C.

Montana LLC

brobox · 04-06-2014, 12:40 PM

I had a MT LLC on my last MH and I complied with my state laws of having it out of state for the first 6 months so I didn't have any problems. However on my new MH that has had some delivery issues I am dropping the MT LLC and will be paying the state sales tax. The reason for that is...if I have to go to arbitration, or file under the Florida Lemon Law, I think I will have a problem with a MT registration and living in FL.

I am one of those that is pro MT LLC if you meet the requiments. I did and it worked fine. I re-registered it FL 2 years later with no problems what so ever. I also held title in a trust and not personally.

I think your idea is fine if you establish residences in MT there would be no sales tax. When I stored mine, it was in locked inside storage so no one could be looking at the plates anyhow. A cheap price to pay for the tax savings.

danes-on-tour · 04-06-2014, 12:45 PM

Quote:

Originally Posted by UKGuy

OK. I have a question. We all know about Montana LLC's and the associated problems around sales tax etc., but what about a bone fida personal purchase by an individual?

If I have a Montana drivers licence (which I believe I can get as a non-US citizen, with a Montana address, then in theory, I should be able to register a MH there and not have to pay sales tax? As I don't have a US 'income' then state income tax shouldn't be an issue. I don't know about property taxes.

However, the MH is likely to be stored out if state when not in use but not necessarily at the same place each time and I am aware that storage location comes into play sometimes when it comes to sales tax etc.

Am I missing something somewhere or does this sound feasible? Is there anything else I am missing?

I know the Montana thing has been beat to death on numerous occasions but I just want to either put this thought out if my head or keep it open as a viable option. And just for those who think I should pay up, anything I save on MH sales tax would be spent elsewhere in the US.

Andy - setting up and buying an RV on Montana plates is easy. As suggested by "palehorse", get in touch with Bennett Law office. They will handle all of that for you for a fee. You can store it where ever you like and never have to return to Montana for MOT's (UK vehicle inspection) or the like. You will have to get small annual tags to put on you license plates (tax discs) and Bennett can handle that as well.

Getting a US drivers license when not being a US resident is not possible. You may have a US postal address, but you don't have a Social Security number and that puts a stop to that.

How do I know all this? We have been doing exactly this since 2007 as non-residents. Check out my website Danes on tour

If I can assist you in any way, feel free to send me a PM (personal message) through iRV2. We should have most of the answers to the "problems" that you may encounter as a "tourist"

Sky_Boss · 04-06-2014, 08:40 PM

Is it legal?

Yes.

Is it tax evasion? Depends on your "home" state.

EDIT...after realizing the OP is probably a UK resident, it may not be much of a problem but for those US residents that stumble on the thread...

An EXCELLENT article!

From What About Using A Montana LLC To Avoid Sales Tax?

In Montana, setting up a Montana LLC for out-of-staters for the purpose of avoiding sales taxes is perfectly legal. There is absolutely no question about that.

However, your state of residency does NOT have to follow Montana law. So if their laws conflict with Montana on this issue, they have every right to ignore the Montana LLC, and make the RV purchaser pay sales taxes.

Do you feel lucky?

Tony Lee · 04-06-2014, 09:28 PM

Andy, we own our Airstream through a Montan LLC. No sales tax was payable on purchase and because it is more than 10 years old, we have permanent tags so not even any annual registration costs. No annual inspections either. We insure it with progressive using a friend's Californian address. Store it in CA too, although that might change this year. We don't have a US license and just get an international driving permit to team up with our Australian License. Not really needed in the US but needed it in South America and parts of Europe. Yet to be asked for it.

As for doing what you suggest, don't know. I believe that there are some US states that you can do it, but most are the same as most of Europe - and UK too where aliens can own a vehicle but have great difficulty in registering and insuring them. The LLC gets around that, although strangely, Progressive have never made any fuss about it and seem to be happy having everything in my name. They even suggested finding a CA address to reduce the premiums.

I've just bought a CA registered F350 that is actually located in Argentina and Deer Creek LLC in Montana arranged the re-registration and new title and mailed me all the new paperwork and new permanent plate and I have never been near their offices.

Crazy. I can't own and operate a US vehicle but I can legally own a Montana LLC which can own as many vehicles as I want to buy.

danes-on-tour · 04-07-2014, 01:27 AM

I also travel with my "native" drivers license plus an International license, and also never had to show this anywhere.

My reason to want a US drivers license is that my insurance cost is twice what everyone else is paying due to my non-US drivers license. In other words - I could half the cost with is a substantial amount. I am also insured with Progressive.

Tony Lee · 04-07-2014, 07:31 AM

Yes, insurance is a bit more expensive - but in the greater scheme of things, the difference is not much more than a tank of fuel. We only use it for 6 months per year so as soon as the vehicle goes into storage I drop the insurance to the minimum or cancel it altogether so that saves a bit.

danes-on-tour · 04-07-2014, 08:32 AM

Quote:

Originally Posted by Tony Lee

Yes, insurance is a bit more expensive - but in the greater scheme of things, the difference is not much more than a tank of fuel. We only use it for 6 months per year so as soon as the vehicle goes into storage I drop the insurance to the minimum or cancel it altogether so that saves a bit.

Our insurance went up by $1,250 in one year when they started charging extra for non-US drivers licenses. Although our fuel tank is big it will not hold 342 gallons

BTW - it went up by 100% the same year we became valued "Diamind members" for having been customers for 5 years without having a claim.

Tony Lee · 04-07-2014, 12:20 PM

Yet another advantage of buying a "senior" motorhome. Cheaper, so insurance premiums are lower and no yearly registration.

I insure it for as much third party liability as Progressive will issue but if I went with the more usual pathetically-low statutory limits, I could save even more

Murf2u · 04-07-2014, 04:19 PM

Quote:

Originally Posted by danes-on-tour

Getting a US drivers license when not being a US resident is not possible. You may have a US postal address, but you don't have a Social Security number and that puts a stop to that. How do I know all this? We have been doing exactly this since 2007 as non-residents.

Hmmmm, I'm not sure about that. Mostly because I'm a Canadian with no US Social Security Number, but WITH a Florida Drivers Licence.

http://www.dmvflorida.org/drivers-license-nc.shtml

Tony Lee · 04-07-2014, 04:46 PM

Special deal for Canadians who spend lots of time hiding from the cold in Florida.

The rest of us aliens would have a hard time complying with the requirements without a fair bit of creative paperwork.

UKGuy · 04-08-2014, 01:51 AM

Have read and re-read the ID req.ts for a Florida license. The two key documents that seem to satisfy the checks for a non-immigrant to get a FL drivers license are a valid I-94 visa and a government-issued, non-US passport in lieu of a Social Security number. Will call them this week to double check. Will speak to Montana DMV as well while I'm at it in case I go down that route. Will report back!

UKGuy · 04-08-2014, 06:43 AM

Quote:

Originally Posted by UKGuy

Have read and re-read the ID req.ts for a Florida license. The two key documents that seem to satisfy the checks for a non-immigrant to get a FL drivers license are a valid I-94 visa and a government-issued, non-US passport in lieu of a Social Security number. Will call them this week to double check. Will speak to Montana DMV as well while I'm at it in case I go down that route. Will report back!

OK.Just got off the phone with the DMV in Sandford, FL. According to the nice lady there, it is possible to get a FL drivers license as a non-US citizen, non-immigrant status. There is one problem though, it will expire when the I-94 visa does. As a 'tourist' this would be six months max, even though an overarching visa may last up to ten years. Driving test & exam required the first time but subsequent renewals would just be a paperwork exercise. The cost? $69.25 each time, which effectively is once per year max. A small price to pay for lower insurance premiums on both the MH & Toad. Hope this helps other people in a similar position to me.