wprice5441
United States
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do any of you use the Montana LLC option to buy or register your 5th wheel. I live in SC and it seems too good to be true
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phillyg
Front Royal, VA
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Just do a search for Montana LLC or Montana and you'll get dozens of hits. Some folks use SD instead. Bottom line: if the RV is not garaged at your house in SC, you might, and I stress "might" be okay, but be very careful lest you be hit by SC for avoiding/evading their taxes.
2002 Keystone Cougar 286, 8,400lbs loaded, pulled with a 2004 F150 Supercrew, 5.4, 3.73 gears. Retired and enjoying life
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rgreengas
Colorado
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I was wondering the same thing. So I did a quick google search and this is one of the results:
"BREAKING NEWS
Colorado Convicts RV Owners for Tax Evasion
RV Business
Wednesday, May 21, 2008
State authorities brought civil and criminal charges against Colorado residents who registered recreational vehicles worth up to $400,000 in Montana to avoid local taxes and registration fees.
The Denver Post reported that the offenders registered recreational vehicles only in Montana, which does not charge sales taxes on motor vehicles and has low registration fees. But Colorado residents must pay sales taxes and registration fees in Colorado, said Mark Couch, spokesman for the Colorado Department of Revenue.
The Colorado Attorney General's Office and the revenue department working together obtained misdemeanor tax evasion convictions against 12 people living in Jefferson, Boulder, Arapahoe and Weld counties, Couch said.
They each received deferred sentences, and were also ordered to pay restitution to the state, register their recreational vehicles in Colorado and perform community service, Couch said.
The Revenue Department also took civil action against other Colorado residents who owned recreational vehicles registered in Montana. The state billed 122 recreational vehicle owners $2.7 million in unpaid sales taxes, penalties and interest."
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dubdub07
Colorado Springs
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rgreengas wrote:I was wondering the same thing. So I did a quick google search and this is one of the results:
"BREAKING NEWS
Colorado Convicts RV Owners for Tax Evasion
RV Business
Wednesday, May 21, 2008
State authorities brought civil and criminal charges against Colorado residents who registered recreational vehicles worth up to $400,000 in Montana to avoid local taxes and registration fees.
The Denver Post reported that the offenders registered recreational vehicles only in Montana, which does not charge sales taxes on motor vehicles and has low registration fees. But Colorado residents must pay sales taxes and registration fees in Colorado, said Mark Couch, spokesman for the Colorado Department of Revenue.
The Colorado Attorney General's Office and the revenue department working together obtained misdemeanor tax evasion convictions against 12 people living in Jefferson, Boulder, Arapahoe and Weld counties, Couch said.
They each received deferred sentences, and were also ordered to pay restitution to the state, register their recreational vehicles in Colorado and perform community service, Couch said.
The Revenue Department also took civil action against other Colorado residents who owned recreational vehicles registered in Montana. The state billed 122 recreational vehicle owners $2.7 million in unpaid sales taxes, penalties and interest."
I will even take this a bit further......
In December we traded out FW for a new one. I asked the finance guy if I could use my mom's address in NM since I joined the AF living in NM and it was my state of record for my military life. I kept NM becasue the taxes and reg fees are so cheap, you just had to put up with the ugly plate. The finance guy said.......any state that border's Colorado is on board with NOT allowing a CO address to register unless the loan paperwork originates with the NM address (or other state). Also, NM (and the other states) require proof of residency, so if you have a CO drivers license and/or don't have an active address in NM (or whatever state) to show a utility bill for, you will not be able to register the vehicle in that state but MUST pay in the state you live in. He went on to say that since CO is so expensive, they actively prosecute out of state registrations that are done purely to evade paying CO fees and taxes. It is 7.4% and the ownership tax is awful, but I do get to see Pikes Peak everyday.....so I didn't even attempt it. I also know that the LLC thing is looked at in Nebraska and other states that border low tax states like SD. Bottom line, if we buy it, we have to pay the taxes.
2012 Montana High Country 333DB
2010 Dodge 2500CC 6.7 CTD, 2012 Jeep JK Rubicon, 2012 Durango Citadel, 2010 Harley Heritage Softail....American STEEL = American profits.
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WyoTraveler
Powell, WY
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When I was a CA resident I ordered my 5Ver out of WA state. No sales tax. When I picked it up in March I discovered WA state only gives a 3 day temp permit. My trip was already planned to Wyoming. Wyoming wouldn't register the 5Ver since I was not a resident although I owned vacant farm land. I parked the 5Ver on our land and stayed all summer. No registration. In Sept. I drove back to CA. Unknown to me if you owned the vehicle for at least 6 months CA does not charge sales tax. Just a lucky break that I didn't expect.
There are numerous cars, trucks, and RVs driving around northern Wyoming with Montana plates. I am sure that they probably are going through Montana LLC or some other agency. Eventually I think that will all change like in CO
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Old-Biscuit
Across the USA
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For many years establishing a Montana LLC and registering vehicles thru the LLC worked very well for lots of folks to avoid paying taxes in their home state.
Granted some of the LLC were established for actual commercial endeavors BUT a lot were done just for the tax advantage.
Consequently many states no longer turned a blind eye to this and began prosecution of 'state residents' using LLC.
You need to consult with a SC tax authority and fully understand your situation.
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ChopperBill
Colo
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WyoTraveler wrote:When I was a CA resident I ordered my 5Ver out of WA state. No sales tax. When I picked it up in March I discovered WA state only gives a 3 day temp permit. My trip was already planned to Wyoming. Wyoming wouldn't register the 5Ver since I was not a resident although I owned vacant farm land. I parked the 5Ver on our land and stayed all summer. No registration. In Sept. I drove back to CA. Unknown to me if you owned the vehicle for at least 6 months CA does not charge sales tax. Just a lucky break that I didn't expect.
There are numerous cars, trucks, and RVs driving around northern Wyoming with Montana plates. I am sure that they probably are going through Montana LLC or some other agency. Eventually I think that will all change like in CO
WY has already started. We license our Polaris RZR and Sportsman in WY because CO wont. We now have to have a notarized letter stating we have resided in WY for around 150 days. Plates are NOT cheap for our AVT's either.
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Deetour
Washington
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Joined: 06/01/2011
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I've had a Montana LLC for over 5 years now with absolutely no problems nor do I expect any.
Its interesting to visit exclusive RV resorts and notice the license plates on the high end motorhomes to see that about 75% of them have Montana plates.
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Mile High
Denver, CO
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Joined: 02/05/2008
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It's fraud, which is why it seems too good to be true!
Colorado recovered several million dollars on that sting. Colorado has a Department of Revenue hotline to call in suspected violators, and they DO follow up.
Channel 9
The pathetic truth is people act like they did nothing wrong! Montana plates on their $350,000 MH but Colorado plates on their toad! C'mon - how about adding to it that they are being paid by Colorado State Parks to reside in the park as a campground host! They probably have never been to Montana!
It's expensive for all of us that live here, especially when many are taking a free ride.
2006 Ford F350 4X4 SB CC SRW Powerstroke 6.0
2007 Montana 3400RL 5th - hi gloss, electric awning, remote system, Onan 5500, G614, JTs, wet bolts, Dish, Ariston W/D, 5th Airborne.
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bpounds
Whittier CA
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rgreengas wrote:The Revenue Department also took civil action against other Colorado residents who owned recreational vehicles registered in Montana. The state billed 122 recreational vehicle owners $2.7 million in unpaid sales taxes, penalties and interest."
Hah, that's an average of $22k per owner. I can imagine the groaning.
Bill and Carol
2006 F250 Diesel
2011 Keystone Cougar 278RKSWE Fiver
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