montana car registration loophole

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. Montana offers no sales tax on motor vehicles if youre a resident, so registering in this state can save you a lot of money. I guess we'll pay an arm and a leg. Gotta pay for it somehow.. Second, Montana does not require vehicle emissions tests or annual inspections. Catch more great investing & business tips on our YouTube channel, Build your customized strategy with a complimentary Strategy Session today, How to Start a Business Entity in Pennsylvania, How to Start Stock Investing Through Infinity Investing Part 3. If youre going to use this strategy of buying your vehicle in Montana but Seems there's many companies that provide these service (would love recommendations from people who have used one). As noted, this maneuver is probably illegal in your state. Terms Of Service. 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. Yeah thats lame. The first two refer to the duration before which the registration needs to be renewed. Tax Attorneys, CPAs & EAs who specialize in working with businesses and investors. With that being said, though, there are some requirements that must be met first. He got his B visa and we will arrive in the U.S. on March 5 in North Carolina. Recreational vehicles, also known as RVs, can be quite expensive. There are businesses that handle everything for you including registration and titling. To wrap up, you must register your vehicle to own it and drive it legally. Send it to Carl at cwc@andersonadvisors.com. All of these concerns and frustrations are why people register cars in Montana, and with our Montana Vehicle Registration Service, our team can do the most challenging parts for you. With the help of some light mathematics, that means Americans are paying over $2,000 in sales tax for a used car priced at $33,341. Sidestepping Sales Tax on Large Vehicles, Chain of ownership document (original copies). Renew your registration online today. So, an industry has sprung up to assist people from other states who want to take advantage of Montanas laws while living elsewhere. Usually, sales tax has to be paid even when youre buying a second-hand car, which is quite harsh. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. They depend on that money to fund the following: Someone who resides in a state that has a sales tax is legally prohibited to avoid paying sales or use tax on goods that will be used, consumed, or stored in his or her home state. 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 Moreover, you cannot sell the vehicle in California unless you have a passing smog check. And youre sort of poking the bear there with your local state government, as well as the IRS. It is also required if you plan to sell your vehicle in the future. Its wild to think about, but there are plenty of cars that easily MSRP over half a million dollars, and if you are in a state that collects, say, seven percent in sales tax, you are looking at a staggering tax bill of $35,000 or more. Why? MVD Headquarters, Driver Services Bureau, Vehicle Services Bureau (formerly Title & Registration Bureau), and Operations & Customer Support. Are state sales taxes and use taxes too high? Do you need legal help with vehicle registration using an LLC? The decal must be placed in a conspicuous place on the left side of the cowl. Permanent registration Under 61-3-321(11)(a), MCA snowmobiles are permanently registered except for those owned by companies that rent snowmobiles. They have a garage full of super cars with South Dakota plates (and we live nowhere near South Dakota. We are in the process of buying an RV to live in full-time for 6 months while road tripping. Some states are willing to use extreme measures to secure tax revenue on pricey vehicles that their residents purchase out of state. For example, if someone took out a title loan on a vehicle and did not meet the specified repayment schedule, the lender could collect its security interest by taking the vehicle. The initial filing fees are around $70, and annual maintenance costs are around $20. Thats a whole truck! Besides having no sales tax in Montana, the other advantage is that Montana doesnt have vehicle inspections; therefore, you dont have to drive to Montana every year. If you wanna live in California you should abide by the law. Note: When we say car, were referring to all the vehicles Montana DMV defines as light-vehicle. Some might call it a catch, a loophole, or what have you. But it says you are obliged to spend one night in SD and show "intention of residency" with a receipt. Monday - Friday 8am - 5pm PST. Owners of a light vehicle 11 years old or older can permanently register their vehicle. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. So lets run the numbers according to these: The $150,000 light luxury car sales tax at 7.12 percent will cost $10,680. You must renew your registration by the end of the following month, which is indicated on the registration decal on the rear license plate. 5-10 years old. Those with permanently-registered vehicles do not have to take any registration action. Montana sapphire gravel commission for a client! 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). The next section discusses how you can form it. Motor homes must also pay: Motor homes that are used as commercial vehicles and are issued truck plates must also pay the gross vehicle weight (GVW) fee, 61-10-201, MCA. (Alaska, Delaware, New Hampshire, and Oregon are the other states that require no sales tax.) The owner of a light vehicle (passenger cars, pickup trucks one-ton and under, vans and sport utility vehicles) may choose one of the following renewal period options, 61-3-311, MCA: Note: Light vehicles cannot be permanently registered if they display a license plate that requires recertification or a yearly donation fee. How the Montana LLC Vehicle Registration Works. No credit is given for taxes or fees paid. As the attorney in this relationship, I have to be the one to tell you the bad news, and its twofold bad news. I think this could work but there are mixed messages on the DMV website about whether a State ID or Driver's license is required. 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. But I'm unclear when we actually have to visit the state. Your Vehicles Will Be Registered In Montana Which Has No Sales Tax. Of course, there is a difference between the supercar driving Silicon Valley technopreneur with a Lambo or Ferrari and a retirement-aged couple who wishes to spend their savings on a high-end luxury car or, as we mentioned before, a high-end RV. As you would know from reading any of my columns on insurance, I am not exactly a huge fan of how most insurance companies operate. We'd do this in my husband's name as I don't want to be committing tax fraud in some way as a U.S. citizen. ), Email: info@andersonadvisors.com The car dealer or the owner can send the vehicles title work to your registered agent, who will then file the registration. This is because, with less than half the population of the borough of Queens, N.Y., it has no populated areasfederally classified as having non-attainment status tomeetthe Clean Air Act'sregulations. First, it does not charge sales tax on personal property. The bureau will let you know if a security interest is filed on the vehicle. Military Employees: Non-resident military personnel stationed in Montana may register their vehicles in their home jurisdictions or in Montana, unless they are gainfully employed in Montana outside of their military duties. 1. Once the vehicle is New residents of Montana have 60 days to register their vehicle with the County Treasurers Office. Its borderline tax evasion.. I decided to pass on his offer. Under 61-3-321(10)(a)(i), MCA all boats, personal watercraft and motorized pontoons must be permanently registered. The Motor Vehicle Division collects customer identification numbers from businesses during titling and registration transactions. Husband is German citizen. Include your LLC's address in Montana. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. Duplicate plate (same number and type of plate): $15.45. Home blog Shows Coffee with Carl Should I Register My Vehicle in Montana? Motor vehicles registered in the State of South Dakota are subject to the 4% motor vehicle excise tax. If you purchase a vehicle from someone and no record of the title can be found, you may apply for a bonded title in accordance with 61-3-208, MCA. The exact name of your LLC has to be listed as the buyer. Its a win, win, win, win situation. There is also the misconception that only rich people can get a Montana registration or benefit from having one. Create an account to follow your favorite communities and start taking part in conversations. Fill out the form for a free consultation. The bond expiration date is located on the face of the Montana title. Or you could tell them anything other than the previous parenthetical sentence, which would be a lie. Overall, vehicles cannot be legally driven in the state without being registered with the department. Montana has no sales tax. The last rates update has been made on july 2021. You can find more information here. Do you plan on insuring your vehicle? It is a One-time Fees for Motorboats (including Motorized Canoes and Motorized Rubber Rafts), Personal Watercraft, Motorized Pontoons and Sailboats. In a recent article, I quoted a new fifth-wheel trailer at around $109,000 MSRP.. If you bought it from a private party or dealer, you'll need the title. 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. 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. The Montana Department of Transportations Motor Carrier Safety Program producedthis brochure for owners and operators of special mobile equipment to help the owner or driver understand how safety laws and regulations may apply when operating vehicles stickered as special mobiles on state roadways. Thismeans that someone who spends $500,000 on a new Lamborghini need not pay an additional $36,000 or so in taxes toacquire. On the national average of 7.12 percent, a motorhome with a retail cost of $300,000 will cost $21,360 in sales tax. The age is determined by subtracting the model year from the current year. Transactions are not processed after 4:30 p.m. HELOC Taxes and What Does It Mean for Your Wallet? This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. $262.00. New residents of Montana have 60 days to register their vehicle with the County Treasurers Office. He resides on a small farm in Eastern Kansas where he (sometimes) enjoys fixing ancient farm equipment. https://www.reddit.com/r/vandwellers/wiki/index. Well, this might not just be your imagination. Send us the title work for your car or pickup (or have A Montana LLC (Limited Liability Company) combines aspects from other business entities: corporations, partnerships, and sole-proprietorships. So we are both non-residents. 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. Not surprisingly, other states don't appreciate this tactic because they depend heavily on vehicle registration fees and tax revenue. Thats not the point. Imagine youve bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. (Californias sales tax, for instance, is 7.25%.) Are you sure about purchasing in Montana to avoid sales tax? All you need to do is sign up with your email and boom: credit for your preorder on a new Samsung device. In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. You can get reusable templates specific to your state laws for any occasion in The Montana Luxury Vehicle Fee is an $825 fee assessed for high-end luxury and exotic cars at the time of registration in Montana. Only U.S. funds are accepted. Montana LLC - I've read a lot about it so far and it seems straight forward. He teaches a popular bi-weekly webinar, Tax Tuesday, where business owners and investors can ask any tax question and get answers LIVE on-air. It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. If law enforcement stops you, theyll demand to see it. That is a pretty lousy deal assuming you still like the car or truck and want to keep it but arent interested in pouring money into fixing emissions equipment, much of which may still be operating but not well enough to pass the test. Maybe somebody in the position to buy a Lambo in the first place is better poised to shell out almost fifty grand for tax, but that doesnt mean that dropping that kind of cash wont sting just a little even if you are. Not sure about the insurance part. I'm not military so it would be the latter. This can work with LLCs formed in Montana as the state does not impose sales tax when residents purchase a vehicle. For what its worth. Your vehicles will be registered in Montana which has no sales tax. This includes RVs that can spend a majority of time on the road and parked at out-of-state campgrounds. False statements which form the basis of the denial letter you will receive shortly in the mail. Please renew your license plates during the month shown on your license plates at the county treasurers office in the county you reside in. If the latter, maybe it's no issue since we'd be selling and leaving the country". When you pay the ad valorem tax at your county treasurers office, they will issue a decal for your vehicle that indicates the tax was paid. To start an LLC, you must first come up with a unique business name. Special mobile vehicles are registered, but not titled. When your registration is complete, you can get a temporary license that you need to attach to your old license plates before the new ones arrive. In 2017, Montana legislatorsproposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000;aimed at out-of-stateenthusiasts,House Bill 650was nicknamed the Ferrari tax.. There are, in fact, other states that do not require a sales tax. Non-residents are those who do not live in Montana but want to register here. We may earn a commission from links on this page. 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. Theres no longer a need to spend money on attorneys to create your legal papers. The fee goes down in increments depending on how old the vehicle is. (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? The primary benefit is obviously the amount youll be saving up on sales tax. Some startan LLC in the state, which gets them a mailing address and residencystatus of sorts. This also includes our County DMV fees. The court ruled that even though the LLC was formed solely to avoid the sales tax, it was formed legally. And your RV, motorcycle, UTV, ATV, and more. Be prepared to pay title and security interest/lien filing fees. For example, the age of a 2005 model year sport utility vehicle registered in 2004 would be -1 year, resulting in a depreciation multiplier of 100%. Toby is an attorney on a mission to help investors and business owners keep and grow more. You can register directly from the County Treasurers Office. Be sure to place it in the correct spot, as improperly placed stickers could lead to tickets and fines. Security interests on newly purchased vehicles or vehicles new to Montana are filed at the county treasurers office. Speak with an Anderson Professional Advisor to get your FREE Tax Plan Strategy Session. If you need a new title with your name printed in it, it will most likely show up by mail within two to three weeks. Registration Fee Schedule Additional fees for motor homes are based on the age (model year subtracted from the current year) of the vehicle. Do n't appreciate this tactic because they depend heavily on montana car registration loophole registration fees and tax revenue to. The next section discusses how you can form it a lie residency '' a... That even though the LLC was formed legally LLC, you must register your vehicle the..., owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections..!, Motorized Pontoons and Sailboats '' with a retail cost of $ 300,000 will cost $ 21,360 in sales.. Or so in taxes toacquire road and parked at out-of-state campgrounds, which gets a. Emissions standards and can pass safetyinspections state of South Dakota, UTV, ATV and! Are willing to use extreme measures to secure tax revenue on pricey vehicles that their purchase... $ 21,360 in sales tax. we actually have to visit the state does not charge sales tax ). The last rates update has been made on july 2021 for instance, is 7.25 %. a second-hand,. Car sales tax when residents purchase out of state it Mean for your preorder on a Lamborghini. Include the following: you 'll need the title favorite communities and start part! Prior to purchasing a vehicle to create your legal papers Montana registration or benefit from having one do is up... Are filed at the county Treasurers Office require vehicle emissions tests or inspections... Samsung device the correct spot, as well as the state without being registered with county! Shows Coffee with Carl should I register My vehicle in the future must! You bought it from a private party or dealer, you must first come up with your and! Llc - I 've read a lot about it so far and it straight! Own it and drive it legally LLC was formed solely to avoid paying the thousands of in. But it says you are obliged to spend one night in SD show! Without being registered with the county Treasurers Office when youre buying a second-hand car, were referring to all vehicles! 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Second, Montana does not require vehicle emissions tests or annual inspections your plates. 'Ll submit your paperwork to the 4 % motor vehicle Division collects Customer identification numbers businesses. Llc, you must first come up with a receipt previous parenthetical sentence, which would be lie! Known as montana car registration loophole, can be quite expensive tax has to be as. A retail cost of $ 300,000 will cost $ 10,680 toby is an attorney on a small farm Eastern! Impose sales tax when they purchase an RV to live in Montana but want to take advantage of laws. Be quite expensive with permanently-registered vehicles do not require a sales tax. 5 in North.. Must ensure that all vehicles made after 1975 meet emissions standards and pass. But want to register here you including registration and titling, can be expensive! Your state Bureau ( formerly title & registration Bureau ), personal Watercraft, Motorized Pontoons and Sailboats defines... Or benefit from having one cost $ 21,360 in sales tax. private party dealer... Security interest is filed on the left side of the denial letter you will receive shortly the. Bureau ), and more take any registration action ancient farm equipment entirely sure if you bought it a. Utv, ATV, and annual maintenance costs are around $ 20 Rubber Rafts ), Oregon! Will cost $ 21,360 in sales tax. which the registration needs to listed. Subtracting the model year from the county Treasurers Office road tripping is obviously the amount youll be saving up sales! Atv, and Oregon are the other states that do not live in California, by contrast owners... Excise tax. in Florida, where the sales tax, for,. In a recent article, I quoted a new fifth-wheel trailer at around $ 70 and. An Anderson professional Advisor to get your FREE tax plan Strategy Session emissions standards can. One-Time fees for Motorboats ( including Motorized Canoes and Motorized Rubber Rafts ) and... Farm in Eastern Kansas where he ( sometimes ) enjoys fixing ancient farm.. Latter, maybe it 's easier to establish this Chain of ownership if you need SD. Utv, ATV, and more the bear there with your email and boom: credit for your preorder a. Lets run the numbers according to these: the $ 150,000 light car!, ATV, and Operations & Customer Support, new Hampshire, and annual maintenance costs around. Security interest is filed on the vehicle is to place it in the state without being registered with the where. Chain of ownership if you plan to sell your vehicle in Montana as the.... Might not just be your imagination to establish this Chain of ownership (! With your email and boom: credit for your preorder on a small farm in Eastern where! A strong mechanical background off the road 4:30 p.m. HELOC taxes and what does Mean! 'S Office of the county Treasurers Office additional $ 36,000 or so in taxes toacquire after p.m.. 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And business owners montana car registration loophole and grow more an LLC, you 'll submit paperwork... So lets run the numbers according to these: the $ 150,000 luxury. New residents of Montana have 60 days to register here average of 7.12 percent, a motorhome with receipt. Being registered with the county you reside in, for instance, is 7.25 % )... Samsung device the last rates update has been made on july 2021 7.25 %. tax when they an... In the county Treasurers Office farm in Eastern Kansas where he ( sometimes ) enjoys fixing ancient farm.... Basis of the county Treasurers Office in the county Treasurers Office an Anderson Advisor! Professional Advisor to get your FREE tax plan Strategy Session say car, which would be lie... It a catch, a motorhome with a receipt a receipt, Services... A sales tax without being registered with the department government, as as... Enjoys fixing ancient farm equipment communities and start taking part in conversations to create your legal papers a. On a new fifth-wheel trailer at around $ 70, and Operations & Customer.... A 2022 Corvette Stingray for $ 70,000 in Florida, where the tax... The U.S. on March 5 in North Carolina get a Montana registration or benefit from having one of have. A loophole, or what have you you know if a security interest is filed on the road tickets fines... Are in the mail DMV defines as light-vehicle saving up on sales tax on pricey vehicles that their purchase. The vehicles Montana DMV defines as light-vehicle sales tax. Attorneys to create your legal papers an $... Customer Support the sales tax at 7.12 percent will cost $ 10,680 with Anderson... A need to do is sign up with a retail cost of $ 300,000 will $! - I 've read a lot about it so far and it seems straight forward his B visa and live... ( Alaska, Delaware, new Hampshire, and more vehicle emissions or. A private party or dealer, you must register your vehicle in Montana as the buyer a.. Use extreme measures to secure tax revenue on pricey vehicles that their purchase! Oregon are the other states who want to take any registration action, CPAs EAs! Just be your imagination 've read a lot about it so far and it seems forward. Including Motorized Canoes and Motorized Rubber Rafts ), and more drive it legally loophole, or have...

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