Best state(s) for taxes and licensense fees - Montana Owners Club

gcatt1 · 02-13-2007, 06:23 AM

Considering sales taxes, personal property taxes and licensing fees, where would the best place(s)be to buy and register a new Montana and new truck? Would the answer be any different for used?

virgil47 · 02-13-2007, 06:31 AM

Four states usually come up with +'s and -'s to each. Texas, Florida, South Dakota and Montana. I can only give you personal experience in South Dakota. No state income tax, no state sales tax but there is a 3% tax on purchase of a vehicle or trailer.
Others will come along and tell you the benefits of Texas, Florida and Montana. We have had positive experiences with Alternative Resources mail service in Sioux Falls, SD but there are others.

SKOOBDO · 02-13-2007, 06:42 AM

I plan on registering mine in South Dakota. No Vehicle Inspections where you will have to travel to other states to get an annual inspection to renew your registration. I initially was going to register in Texas, however, they enforce vehicle inspections.

GlobalDouglas · 02-13-2007, 06:46 AM

Alaska also does not have sales tax or income tax. I purchased my Monty in MI and TV in VA, did not pay any taxes on them. Paid less than $100 to register it in Alaska. Alaska also pays each citizen an annual PDF check (from oil $$), usually around $1,000 but can be much higher. It is not difficult to become a resident but I am not sure what the requirements are in terms of required length of time actually reside in Alaska.

c5racer · 02-13-2007, 08:43 AM

Having been born and raised in South Dakota, I vote for SD. You can find all the info for South Dakota here.
SD DMV

jretz · 02-13-2007, 09:26 AM

I have South Dakota as my residence. I sent it up through My Home Address (WWW.myhomeaddressinc.com). No state income tax, low registration fees, 3% tax on RV and Vehicale purchases, no vehicale insspecitons, low vehicale, RV, and medical insurance rates. All the mail forwarding companys in South Dakota list the benifits and requirements. I know others that have used Texas and like it but for me South Dakota works best. You just need to check out all the options and see which ones fit.

Good Luck

sreigle · 02-13-2007, 09:35 AM

Same as skoobdo and Virgil47. But would like to clarify that the 3% excise tax on vehicle purchases is on the trade difference, not on the entire vehicle price.

Also, no property tax on vehicles. Our annual fee for renewing registrations for a 2005 Ford F250 and 2003 Montana 3295RK last August was $204.

Also, SD has the third lowest insurance rates in the country.

SD does not require you own or actually have a home in the state, nor do you have to have ever lived there. They are very rv'er friendly.

Mail forwarding is available from a couple of services in South Dakota. Both cater to rv'ers. We use Alternative Resources, at www.alternativeresources.net . Jretz gave you the name of another service, My Home Address. I think there is one in Rapid City, also.

Texas and Florida are the others often used by rv'ers. Florida has a tax on intangibles (Florida people, did I get that right?), if that is of concern to you. Texas requires annual inspections but I understand you do not have to come back for the inspection. You can get it next time you're in the state. No inspections in South Dakota. We did not even have to take our vehicles there. We did have to go there to get our initial drivers license, however. They are good for five years, then you'll have to go back to renew the drivers license.

You can purchase the truck and Montana anywhere, then register them in South Dakota. No taxes due when you do that (unless you are already a resident, then the 3% on trade difference). We renew by mail/online. And when we traded we handled it all by mail and online (for the forms) although once they called me to straighten out an error I made. We found the courthouse staff at Sioux Falls (if you use alternative resources) to be very helpful and very aware of rv'ers. Working with them has been a very pleasant experience.

If questions, don't hesitate to click the envelope icon above this post and email me.

Joyce H · 02-13-2007, 09:51 AM

Before choosing Florida be sure to check on the new insurance/tax rates. With all the storm damage they have had in recent years I have heard rumors rates on many things have tripled. Haven't verified this as we chose Tennessee to use for residency. TN is a little more challenging for declaring residency, but it can be done.

Montana Sky · 02-13-2007, 10:56 AM

I vote South Dakota as well.

judyuk · 02-13-2007, 11:48 AM

If you have Blue Cross/ Blue Shield medical coverage (as we do) you can't use South Dakota as your mailing/residency address. I don't know why, maybe they don't sell their plans there. I'm sure you're covered as a visitor but not as a resident. Nick Russell, the gypsy newspaper/journal owner, teaches classes for Life on Wheels on fulltiming and residency and was vey explicit about this.
So it's Texas for us! Escapees sounds like a very well run organization with a good mail forwarding program and an actual street address.

sreigle · 02-13-2007, 12:27 PM

Quote:

quote:Originally posted by judyuk

If you have Blue Cross/ Blue Shield medical coverage (as we do) you can't use South Dakota as your mailing/residency address. I don't know why, maybe they don't sell their plans there.

Judy, that is not correct. I am retired from Blue Cross and Blue Shield of Kansas. I have BCBS Kansas insurance and am a South Dakota resident. Also, BCBS does sell in SD. They sell in all 50 states.

I think what you are referring to is that if you have BCBS insurance as a standalone policy and not a group policy, then when you change residency your policy is transferred to your new state. If you have a policy as part of a group, as with an employer, then it depends on the group's policy whether your insurance is through their home state or your state of residence. Usually, today, it is through the employer's state, although at one time it was not.

Blue Cross has a computer system that ensures, for example, that I, with Kansas BCBS coverage, will be covered in compliance with my Kansas policy no matter where in this country I go. At the same time, the provider (dr., hospital, etc.) in, for example, South Carolina, will get paid according to his contract with the South Carolina BCBS even though my insurance is with the Kansas plan. It's called the ITS system. I was the project leader for installation of this system at BCBSKS and our systems rep to the BCBS National Association in Chicago during development of this system, so I'm quite familiar with how this works.

As a retiree in a retiree group with my former employer, my insurance card says Blue Cross and Blue Shield of Kansas. BCBSKS has my home address as South Dakota and sends all my communications to SD.

Judyuk, I don't mean to be jumping your case and hope it is not taken that way. I just want to make sure the record is straight on this. I hope you just misunderstood the context. I'd find it scary if Life on Wheels were putting out bad info. And that is bad info.

Craig A · 02-13-2007, 12:34 PM

In FL, truck cost $100 a year to license, Montana Mountaineer cost about $50 a year, sales tax is 7%, but if you own a stick house, it's ridiculous. I pay about $7000 a year in property tax and insurance now.

Parrothead · 02-13-2007, 12:43 PM

So, Steve, if I want to change to Blue Cross/Blue Shield, we should do it before we go to SD to get everything else set up? I have Kaiser now and they are not all over the US but my CALPERS does offer Blue Cross. I am very worried about this one aspect of full timing because of my heart attack and the medications I have to take.
Happy trails......................

lightningjack11 · 02-13-2007, 12:51 PM

Something new coming up for Floridians. It appears that a surcharge is coming for Auto insurance to be used for the Cat fund. My policy was just renewed and I wasn't charged but the local news said it was coming. I already pay into the Cat Fund as part of my homeowners premium.

For fulltimers I would recommend a state other than Florida until we have a good idea of how much we will ultimately be charged.

You might check out the Florida intangible tax for items such as stocks to see how it affects you.

My choice would be SD from all I have read.

exav8tr · 02-13-2007, 12:57 PM

I think here in Alaska it is good to be a resident. No state income tax no state sales tax, Fairly low cost vehicle registration. Vehicle inspections every two years. Permanent fund dividend is nice, but you have to be physically in state 6 months out of the year to qualify. Do have to return every five years for driver's licence renewal. Vehicles can be done by mail or internet. Mailforwarding available with street address. I have decided to leave AK as my home until the opportunity presents itself to go elsewhere., i.e. can't make it back here every five years for license renewal. Who knows, maybe buy a cabin in the woods, and be a long range snowbird....Just think, up and down the Alcan every year, OR park the Monty and TV in Montana sky's yard for six months and buy a jeep to get around in Alaska with. Hey, That might work.....

I guess as a fulltimer with no stick home, the possibilities would be endless.

Someone please fast forward me to summer................

Phil P

sreigle · 02-13-2007, 01:04 PM

Sue, ask CalPers how their group bcbs policy works. Tell them you will move out of state and ask if you will still have insurance through them. It depends entirely on the group contract negotiated with bcbs.

In the past, businesses with offices in multiple states were not happy with how Blue Cross then worked. Their employees at an office in another state might have insurance benefits through that second state that differed from the benefits those at the home office had. That is because each Blue Cross and Blue Shield plan is a separate entity, like a franchisee. They have to meet certain criteria and participate in certain programs to maintain their BCBS membership and the right to display the marks (logos) but otherwise are autonomous. In recent years some state bcbs plans have combined into a single business to better compete. Anthem, comes to mind as well as Wellmark and some others.

With the ITS system it became possible for all employees of a business to have their insurance through the home office's blue cross plan, regardless where they live, ensuring every employee had identical insurance benefits.

However, some groups may choose to keep the older system of insurance where benefits depend on where you reside. I'm not familiar with CalPers. Is that the State of California's employees? If so, then, yes, I'd bet that you could maintain that insurance even as a SD resident. BUT, you need to ask them to make sure that is how their policy reads. The insurance office for CalPers should have that answer at hand.

bigmurf · 02-13-2007, 01:13 PM

We use Tennessee. No income tax (some exceptions - stocks/bonds), no inspection, years fees for truck & Montana is 29.00 & 14.75. I have Blue Cross of South Carolina (group). If you have titles from other states the is NO sales tax. State sales tax is 9 1/2% !! New drivers license require PROOF of citizenship.

ols1932 · 02-13-2007, 05:03 PM

Quote:

quote:Originally posted by SKOOBDO

I plan on registering mine in South Dakota. No Vehicle Inspections where you will have to travel to other states to get an annual inspection to renew your registration. I initially was going to register in Texas, however, they enforce vehicle inspections.

I am not forced to travel to get a vehicle inspection and my address is Livingston, TX. As long as I don't travel to Texas, I DO NOT have to have my vehicles inspected. I do however, go to Texas and if it is time for an inspection I do it. Otherwise, like last Fall, I didn't need an inspection so when I do get one, it will be over a year since my last one expired. The inspections, or lack of, are not kept track of by other states. Just a little clarification.

Orv

SKOOBDO · 02-13-2007, 11:34 PM

ols1932, so are you saying that even though your vehicle and RV is registered in Texas, and they (Texas)requires inspections you don't have to get one only if you would like to get one? The point I was making is the fact if a state requires an inspection I don't want to get one EVER if I can avoid it since there are many states that don't require it. are you trying to say Texas requires the inspections by law but doesn't ever enforce it? I'm avoiding any state that requires it at this point and time...one less thing i have to be bothered with..its bad enough I have to file income taxes every year

adelmoll · 02-13-2007, 11:58 PM

Skoobdo, you do need to get an inspection in Texas if your current one has expired but only when you return to Texas. If you do not go back to Texas for three years, none of the other states care if you have a current inspection or not.

Escapees has a wonderful service but I still chose Alternative Resources. We are very happy with them.

Helen

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