Montana LLC Illegal?

[bsmeaton]

I guess Colorado has decided so -

We all are unhappy with the conditions of roads and bridges in our state - this should help ours a little ($3 mil)!

http://www.9news.com/video/player.aspx?aid=53486

http://www.9news.com/video/player.aspx?aid=53467

http://www.9news.com/rss/article.aspx?storyid=92215

[HamRad]

Brad,

It's my understanding that they CAN be legal. But I think many folks misunderstand what can be legal and what isn't. Obviously several folks in Colorado did not get good legal advise. The lessons can be very expensive. So unless you have a very good attorney this sounds like something that you do not want to do.

Dennis

[bsmeaton]

As I understand it, it is all about the legitimacy of the LLC. If the LLC is formed for the sole purpose of evading sales and vehicle tax in the home state, it is illegal. Sounds pretty simple to me.

[Bob & Lee]

That is why we have all in SD, Drivers Lic, Ins, and plates. We dont own any property in any state, sold it all to full time, but temp work in CO.

Bob

[bsmeaton]

I don't think I would test your theory Bob, but glad we could find you work.

[bigmurf]

Brad: Can't believe Colorado is going to do this (finally). This has been going on for several years now. I saw the story in a Denver paper last week. Did you see the photo they used? I was a Winnibago (sp) that had to be 20 years old (a D-18 Brave I believe).

[bsmeaton]

I didn't see the paper bigmurf, just the TV. There is one old Bluebird (I think) in the film. I think all of the film footage was from the old newsclip they started last year. I remember the interview with the Dealer and some of the local residences. They seem to be the same.

[ole dude]

Yepper, I thinks we will see more.

[rames14]

Brad -
Thanks for the info. We own property in Colorado and they have already figured out how to get more money from me. If you own property without a structure, you pay a much higher price for taxes. On top of that, I paid two years of non-resident tuition for my son there. I hope they get everyone elses money before we move out there in five years. Then my taxes will be cheaper.

[bsmeaton]

Your 5 years away from getting here Ron, and you're already complaining! Are you sure you're doing the right thing?

[Trailer Trash 2]

Well this is one state starting this tax evaders, who's next?

[rames14]

Brad -
Terrie and I were married 35 years ago. She was born and raised in Pueblo, Colorado. We have lived our entire married life in the midwest because that's where the job was. We have a lot two houses away from Terrie's sister NW of Fort Collins. I promised her we could retire to the mountains. Our lot has year round views of the snow capped mountains. Yes, I'm sure.

[bsmeaton]

Sounds nice Ron -

[rames14]

Brad -
I've been in manufaturing for almost 35 years. I've gotten to travel the world and worked on everything from fuel injection nozzles for Caterpillar to transmission components for every make of car in the world to the world's largest earthmoving equipment. But it's all inside. Manufacturing has been good to me but when I retire I want to spend my time out of doors camping, hunting and fishing - away from crowds.

[TLightning]

quote:Originally posted by bsmeaton

As I understand it, it is all about the legitimacy of the LLC. If the LLC is formed for the sole purpose of evading sales and vehicle tax in the home state, it is illegal. Sounds pretty simple to me.

We used to live in a state where the state law said that if you LIVED (owned a home and were there more than 50% of the time) in that state, you HAD to register (read 'pay pers prop tax') your vehicles there. Many were tagging their MHs in Oregon...made 'em pay back taxes, penalties, etc.

These politicians get torqued when they think you are not paying what they say is your fair share!

On edit...the state did not care about any document from any other state such as an LLC. Only the state law applied.

[bsmeaton]

Tom,

You're right. Oregon was one of the first to prosecute over two years ago.

As it says in the article, it doesn't matter if the actual LLC is legal in Montana, SD, or any of the other 9 states that are tax free, the state you are residing in can pursue you, even if you are residing on wheels. In fact if you work over 30 days in Colorado, you are required to replate your vehicle to Colorado. The exception are students.

[Dave e Victoria]

30 days is the rule in AZ as well although enforcement is a bit haphazard. I remember police going through the parking lot where i worked until plant security chased them off. then they parked just off the lot at quiting time. A lot of people were upset but I don't have a lot of sympathy. These people used our roads, police, fire, and so on. My view is we need to pay our share. We elect folks to determine that share. If we are unhappy with the results, the next step is all too obvious and it doesn't include creeping out of the system.
Dave

[rames14]

Maybe I should write a letter to Colorado. You can't have it both ways. My son was going to school there, had Colorado plates, paid Colorado taxes and was still charged out of state tuition. They were never going to let him "be a resident" so he's now back in Wisconsin.

[Glenn and Lorraine]

Go getem Colorado and hope the other states do the same.
I for one must say "It's about time". I have met numerous RVers, primarily Class A's but towables as well. I do know an MOC member that has his Monty registered in Montana and yet he resides in Utah and Florida. My opinion is if you want to live and can afford the lifestyle you must pay the price.
Yes, I did move from New York to Florida but I also became a Florida resident with Florida registration and Florida drivers licenses and an actual place of residence and no longer a PO box.

[Bob & Lee]

Just looked up Colorado, very loose definations.

Who IS A COLORADO PART-YEAR RESIDENT?
A part-year resident is an individual who was a resident of Colorado for only part of the tax year. This includes anyone who moved into Colorado with the intention of making his/her home here or a Colorado resident who moved out of Colorado with the intention of making his/her home elsewhere any time during the tax year. A part-year resident is required to file a Colorado income tax return if he/she:

• is required to file a federal income tax return, and

• had taxable income during that part of the year he/she was a Colorado resident, or had Colorado-source taxable income any time during the year.

Who IS A COLORADO NONRESIDENT?

A nonresident is an individual who did not consider his/her home to be in Colorado at any time during the tax year even though the person may have temporarily resided and/or worked in Colorado. A nonresident is required to file a Colorado income tax return if he/she:

• is required to file a federal income tax return, and

• had Colorado-source taxable income.

HOW IS COLORADO RESIDENCY DETERMINED?

A Colorado resident is a person who has made a home in Colorado, or a person whose intention is to be a Colorado resident. [§39-22-103(8), C.R.S.]

As evidence of a person’s intentions, the Department of Revenue will consider, among other factors, Colorado voter registration, Colorado vehicle registration, Colorado driver’s license, school registration, property ownership, and residence of spouse and children.