The Motor Vehicle Division collects customer identification numbers from businesses during titling and registration transactions. Want High Quality, Transparent, and Affordable Legal Services? (Ritholtz also hosts the Masters in Businessshow on Bloomberg Radio. You have a choice: Tell the insurance company the truth (I live in Michigan, drive the vehicle almost exclusively in Michigan, store it and park it in Michigan, but have Montana plates on it in the name of a sham LLC.) If you tell them the truth, will they insure the car? The Montana LLC scheme has been around for a long time, and Montana-based lawyers continue to promote this. Ct. LA May 7, 2014). Some states are taking measures to crack down on residents who set up shell corporations in other states, including suing for tax evasion. We aren't so concerned about those costs when you consider that renting an RV for this duration would be around 40k. Ouch. The court ruled that even though the LLC was formed solely to avoid the sales tax, it was formed legally. (Prior to this change, the license plates for trucks, vans and buses over one ton expired at the end of the year and had to be renewed by February 15.). Some state officials insist that vehicle registrants have an actual interest in real property in the state, but the requirements for showing this are extremely minimal. Montana Highway Patrol Salary and Retention Fee $10.30, $10 Montana Highway Patrol Salary and Retention Fee, county tax, $9 optional state parks support, certain special plate fees and, for light trucks, the gross vehicle weight (GVW) fees, $5 insurance verification fee if existing plates are kept on the vehicle, $10.30 Montana Highway Patrol Salary and Retention Fee, $5.15 insurance verification fee if existing plates are kept on the vehicle when permanently registered. Its a riska cheap thrill, echoes Zuckerman, the LA lawyer. Once the vehicle is And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. Your biggest issue is going to get affordable auto insurance having not lived in the US for many years. Reserve the next gen Samsung deviceAll you need to do is sign up with your email and boom: credit for your preorder on a new Samsung device. It's a strategy that you can agree with or not.. Then there are the tax issues. The court has requested the legislatures attention to this law. Individuals must present the following: If youre a resident, your car dealership will send the paperwork for a newly-purchased vehicle to the County Treasurers office. I read an article recently that Massachusetts conducted police patrols in RV parks flagging folks with Montana plates. Heres where Id be worried even if I thought I could dodge the IRS. Cost was somewhere between 100-150 iirc, and you have to pay yearly. Press question mark to learn the rest of the keyboard shortcuts. Only U.S. funds are accepted. But did you know that you cant get an LLC in Montana with a financed vehicle? If your name, address, and/or county has changed or you no longer live in Montana, you must renew your registration at your local County Treasurers The same four percent tax on a $300,000 motorhome rings up to a stout $12,000. So we are both non-residents. The exact name of your LLC has to be listed as the buyer. 3 min read. Okay, so back to the exotic cars. Have you done this? It had Montana plates, and the news made a special note of this. Include your LLC's address in Montana. And you are merely driving your company car. Even though the company is a sham set up for the sole purpose of evading taxes. You'll simply need to produce the certificate of origin from the manufacturer. And, I have insurance through USAA (parents both Military). I will quickly answer why. Be sure to place it in the correct spot, as improperly placed stickers could lead to tickets and fines. Next, you are required to have a Montana Registered Agent. If your name not the LLC name is on the title (likely because you bought it before forming your LLC), you'll have to establish a chain of ownership. The fee goes down in increments depending on how old the vehicle is. To apply for a duplicate Montana registration decal or license plate, visit your local MT county treasurers office in person and: Provide your MT license plate number (or show your vehicle Even in a very modest state with a four percent sales tax, the tax bill for a $150,000 light luxury vehicle is still $6,000. Fee Schedule The fees vary according to the Manufacturers Rated Capacitythe manufacturers rated gross vehicle weight for a bus or heavy truck or the manufacturers rated gross combined weight for a truck tractor. And as we touched on before, Montanas lack of inspections and emissions testing are strong reasons. Visit https://mt.vitu.com/vehicle to search the vehicle record, or contact the Vehicle Services Bureau with the Vehicle Identification Number and the registered owners name and address. The bigger question is why haven't they passed laws to close the loophole rather than doing "high profile scare tactic raids"? The county clerk may ask you to complete a. If law enforcement stops you, theyll demand to see it. This also includes our County DMV fees. Everything I've read says the main reason Americans do this scheme is to avoid sales tax in the state they reside in. You might never get in an accident. I am not the fun police so I will tell you that in many states, you can probably do the foregoing and skate for quite a while without getting caught. The bad news is that you shouldnt act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. Yes, some insurance companies are aware of this for very high-end vehicles and will insure it; however, youre sort of poking the bear there. Registration fees do not include special plate fees for personalized plates and specialty plates, or other miscellaneous fees. Montana vehicle sales tax has always been zero, so it was a natural location for owners of expensive cars and RVs to ease their burdens. The bureau then issues a clear title. One other advantage to a Montana vehicle registration is that it will appeal to people buying used or who intend to hold onto their Montana-registered vehicles for a long time. A provision in the Montana Code allows owners of a light vehicle that is eleven years old or older to permanently register the vehicle for only $87.50. The LLC registers and plates the vehicle in Montana. Luckily, even if youre a non-resident, you can form a Montana LLC and purchase the vehicle under the LLC to gain the same privilege. Its borderline tax evasion.. A Montana LLC (Limited Liability Company) combines aspects from other business entities: corporations, partnerships, and sole-proprietorships. After the bond expires, a new Montana title may be issued without the bond designation and expiration date. Second, Montana does not require vehicle emissions tests or annual inspections. they are necessary and 2.) Thats correct; no nagging smog checks. This loophole is for cutting taxes on million dollar recreational purchases. No sales tax.. A fee of $800 is assessed for motorhomes with retail values over $300,000. The Montana Luxury Vehicle Fee is an $825 fee assessed for high-end luxury and exotic cars at the time of registration in Montana. We all know the benefits of registering your vehicle under a Montana LLC, namely no sales tax. Send us the title work for your car or pickup (or have New residents of Montana have 60 days to register their vehicle with the County Treasurers Office. Establishing a Chain of Ownership for Your Vehicle, 2. 2022 Dirt Legal. Seems I can do everything by mail from a company like Americasmailbox. But hey - you saved thousands of dollars! As I have noted in the past, the solution is to get the law changed. Registration Rate, 61-3-321(2)(d), MCA based on the age of the vehicle, determined by subtracting the model year of the vehicle from the calendar year for which the registration fee is Annual registration Under 61-3-529, MCA fees are imposed on commercial and heavy vehicles in lieu of property taxes. So I do have a voter card there. The Montana Plate Tax Loophole superspeedersRob 807K subscribers Join Subscribe 4.7K 214K views 5 years ago Its easy to get angry and rich people who look like they aren't paying Do you plan on insuring your vehicle? If you bought it from a private party or dealer, you'll need the title. Fees for heavy vehicles are based on the age (model year subtracted from the current year) and rated capacity of the vehicle. As noted, this maneuver is probably illegal in your state. However, with the recent rapid increase in average vehicle prices, with new car prices rocketing toward an average of $50,000, the demand for car registration in a state with no sales tax promise only to go up. Tagged: Montana, Montana Registration, Montana LLC, outofstateseries. The California Highway Patrol, for example, uses a special website that people can use to report vehicles with Montana plates or other plates that are out of state. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. In certain circles, Montana registration is a touchy subject. You can find more information here. For example, the plates on a truck or truck tractor first registered in Montana on April 15, 2006, will expire on March 30, 2007, with the renewal grace period extending until April 30, 2007. Terms Of Service. A founding partner of Anderson Business Advisors, Toby helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and registered agent service with tens of thousands of clients nationwide. All fees are assessed from purchase date regardless of when an applicant applies for title and registration. You can be fined up to $500. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. You may also have noticed quite a few South Dakota license plates, which is not a coincidence. To do so, motorists must meet the states eligibility requirements and qualify to receive a registration. Yes! All rights reserved. We see, obviously, a lot of sellersmany do it,and buyers are interested in doing it, Nonnenberg says. We may earn a commission from links on this page. So, you would be legally obliged to pay a tax equivalent to $4,200, which is quite a lot. Not break the law because you dont agree with it. Now, the question is: Should you do this? Car registration in Montana requires a completed Montana car registration application, evidence of ownership (such as a title or bill of sale), proof of insurance, and the registration certificate from the prior state. You have to get a registered agent to handle business matters in state, a FEIN, a bank account for the business, pay the state a yearly fee to keep the business registered and all the other State and Federal responsibilities that come with an LLC. I just wanted to show you why some people do this since it was a question that comes up from time to time. Doing so, saves you sales tax. But the interest was traditionally by the affluent looking for ways to keep costs down on high-end sports cars, or it was expensive motorhomes looking for the same. Its for the parents trying to get by who are tired of their hard-fought pay going up in smoke. The LLC registers and plates the vehicle in Montana. New residents must apply for a Montana vehicle title and register their vehicles within 60 days of establishing residency. Food for thought. Individuals employed in Montana can be considered temporary residents, and they are required to register their vehicle with the state. Im not entirely sure if you need a SD address or not to get registered. Some people want to avoid paying the thousands of dollars in sales tax when they purchase an RV. Limited-Time offer: FREE (a $750 value. For businesses, the customer account number is the federal employer or tax identification number or, in the absence of these, the number assigned to the business when it registered with the Secretary of States office. You may register a motorcycle or quadricycle for both highway and off-highway use by paying the fees for both uses. Missouri car sales tax loophole 2020 / missouri medicaid expansion will it bust the budget or pay for itself / missouri has recent rate changes (wed jul 01 2020). Along those lines, your first thought might be rich people taking advantage of Montanas complete lack of sales tax. How to title a Motor Vehicle | Replacement Title | Bonded Title | Correction to a Title | Add a Security Interest | Remove a Security Interest | Check for a Security Interest. Class A motorhomes are high-end luxury vehicles that start in the $100k range (often more like $150k) and go up to seven figures. I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? Its a $750 value, and youll walk away with a custom tax reduction plan designed specifically for you. You must renew your registration by the end of the following month, which is indicated on the registration decal on the rear license plate. Out-of-state Montana car registration has never been easier, and as the price of new and used cars continues to skyrocket, it makes sense for all consumers to consider it. One dealer told me he's done this before and there's a special form for Overseas Military/Dependents or Principally Garaging in NC. For example, the age of a 2011 model year Chevrolet passenger car registered in 2018 would be 7 years, resulting in a registration rate of $87 (plus 3% Administrative fee). New bumper-pull travel trailers are well into $50,000. They claim that the spirit of the law is not being protected and that the abuse of this law has resulted in a lot of sham LLCs, whose sole purpose is to avoid tax. With that being said, though, there are some requirements that must be met first. This is a phone call I get too often . First, Montana has long been known for its lax approach to driving laws, most memorably the brief period where the interstate had no speed limit. The car dealer or the owner can send the vehicles title work to your registered agent, who will then file the registration. And, yeah, theres meaningful movement., I advise my clients to establish a Montana LLC only when the odds for a sales tax audit are minimal, says Doug Trotter, the owner of Trotter, LLC, a firm that specializes in automotive consulting, acquisition,and financing. The registration must be done through the County Treasurers Office. Weve got plenty of those. The broader answer to this question is no, registering a vehicle in Montana is not just for the super-rich. Be prepared to pay title and security interest/lien filing fees. I found myself in Salt Lake City and saw the same thing. The initial filing fees are around $70, and annual maintenance costs are around $20. You can then purchase your vehicle under the LLC. Typically, they register in a Montana county that doesn't have a local-option tax. 5-10 years old. Successful registration means that the state has identified you as the owner of the vehicle. You do not need to spend a night there to get registered. Please renew your license plates during the month shown on your license plates at the county treasurers office in the county you reside in. However, the Louisiana Department of Revenue found out about the purchase and claimed that Mr. Thomas owed the state money in terms of unpaid taxes. But if you do, that Montana plate will pop up. Include the bill of sale as well. If someone previously registered a vehicle in another state, the Montana DMV will require him or her to show a proof of sales tax payment. Both my husband and I have a German and International Driver's license. Those with permanently-registered vehicles do not have to take any registration action. Under 61-3-321(10)(a)(i), MCA all boats, personal watercraft and motorized pontoons must be permanently registered. This loophole is for cutting taxes on million dollar recreational purchases. You can get reusable templates specific to your state laws for any occasion in Note: When we say car, were referring to all the vehicles Montana DMV defines as light-vehicle. (Still need to check with progressive if they'll insure an LLC and foreign drivers but I've read they will) Any cons to this plan? At the time, theBozeman Daily Chronicleestimated that the proposed tax could raise $2.5 million annually for the state. Registration Fee Schedule Additional fees for motor homes are based on the age (model year subtracted from the current year) of the vehicle. 9 S. Broadway Ave., Suite F Red Lodge, MT 59068. Montana Lien Entry Form | US Legal Forms Montana Lien Entry Form. While the precise sales tax rate varies between states, the national average is around 6%. If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. The TakeawayIf you have any questions about the best tax decisions for YOUR unique situation, I encourage you to take advantage of a complimentary Strategy Session as a blog reader now. Do you need legal help with vehicle registration using an LLC? Monday - Friday 8am - 5pm PST. Close observers would also have noticed a detail far more polarizing than the semi-lavender paint job:The Turbo came with a clean Montana title in the name of the sellers LLC, the listing said. Permanent registration Under 61-3-321(9)(a), MCA all travel trailers must be permanently registered. This isnt terrible From Vietnamese supermarket delivery Van with congealed Its not always expansive vistas and adventures Press J to jump to the feed. Your vehicles registration certificate is absolutely essential. Usually, vehicle plates are issued for 5 years, after which they must be replaced. Car owners from Mendocino, Calif., to Miami aretitling collectible cars in Montana, evenespecially, in factif they dont live there. Non-residents have to first set up an LLC and purchase the vehicle under the LLC to be exempt from paying the sales tax. One guy I have met in the past, had a Prevost refrigerator start on fire and burn his midsection, they paid quickly for repair (and the RV was good as new). Registration fees are due upon renewal or transfer of ownership. 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State has identified you as the owner can send the vehicles title work to your Agent. Do you need Legal help with vehicle registration using an LLC passed laws to close the loophole rather doing! Montana is not just for the parents trying to get registered of when an applicant applies for and..., to Miami aretitling collectible cars in Montana because they are high-ticket items registration 61-3-321! The law because you dont agree with or not to get registered million annually for the super-rich through (!, Montana does not require vehicle emissions tests or annual inspections wonder what false statements you made on your application! In other states, the LA lawyer emissions tests or annual inspections delivery with!
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