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Old 02-20-2008, 12:01 PM   #21
bncinwv
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Steve,
I just bought a boat in Indiana, did not pay any sales tax in Indiana, but to register the boat in WV, I had to pay WV sales taxes on the boat. This post is for information purposes only, does not apply to LLC's, is not warranted, and should in no way be considered advice of any kind (either legal or illegal!!!)
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Bingo and Cathy - Our adventures begin in the hills of WV. We are blessed by our 2014 3850FL Big Sky (previous 2011 3750FL and 2007 3400RL) that we pull with a 2007 Chevy Silverado Classic DRW CC dually.
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Old 02-20-2008, 12:49 PM   #22
sreigle
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Quote:
quote:Originally posted by Leaseit

Steve, Most all States have a Vehicle Sales Tax Reciprocity Agreemets they work under. It comes into effect if the item is titleable, then the State where the item is sold collects the applicable tax amount as prescibed by the State you give as your residence. Under the Agreement you must provide to the seller that information to validate the Sale.
Example, I"m taking delivery in a few weeks on a new Montana in Michigan. I live in Georgia. Michigan will collect 4 percent Sales Tax for the State of Gerogia and remit that tax to them. Don't worry, i've already been to the Georgia State Tax Offices to insure that this is how it is really done. Now the kicker, The County in Georgia where i live has a tax rate of 6 percent. (4 percent State and 2 percent County = 6 percent)
The Reciprocity Agreement between these says only collect 4 pecent. So it is legal for out of State Vendors to collect sales tax under the Reciprocity between States if an agreement is in place.
I already ask, will i be charged the other 2 percent at Titling and registration time. Answer from the State Gov Tax office, "No, we know that happens, but we under the Agreement, thats how it works. Yeppee, i will take the DW to dinner on that money.
I think the original question in this thread was regarding Registration using a LLC, not sales tax.
Quote:
quote:Has anyone registered their trailer using a LLC in Montana?


Leaseit -
That's why I quoted the Missouri/Kansas situation and the Kansas/South Dakota situation. But Indiana has it's own laws and it does not reciprocate. It charges and KEEPS the sales tax itself. This was in Trailer Life or one of those magazines a couple of years or so ago and is what we ran into when we purchased this truck in Indiana while we were South Dakota residents.

Brad, the point is Montana requires a legal address in Montana. For fulltimers who have no other residence there is nothing illegal nor immoral about creating an LLC in Montana and registering vehicles there. Not any more than when we sold out and pulled up stakes and registered in South Dakota. We have never lived in South Dakota. We've been in the state a total of about three weeks in my entire life, although I want to explore more of the state someday.

I think the issue you are trying to address is those who maintain a primary residence elsewhere and try to use a Montana LLC to save some bucks on vehicle taxes and registrations. In that case I agree with you. My point relates to those who do not have a primary residence elsewhere.

Bingo, I don't know if Indiana law extends to boats. If it does then it will show on your sales contract. My dealer gave me the additional discount equal to the tax because he said by law he has to show the sales tax on the contract. If your contract doesn't show the sales tax to Indiana, then the law must not include boats. It definitely includes my truck.
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Old 02-20-2008, 01:13 PM   #23
krtam
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We were in Napa Valley in October and couldn't figure out why several high-end motorhomes had Montana plates. Kevin asked them and they said they were fulltimers and established a LLC in Montana. The gentlemen said if you establish a LLC and register a 5th wheel you had better have your tow vehicle registered there, also. He said state troopers will check if a RV w/ Montana plates is being towed by a vehicle with different plates.
Sharon
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Old 02-20-2008, 01:59 PM   #24
Driftwoodgal
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Hubby is an insurance adjuster, and we do write off all of our expenses on our RV when we are in it for business. It is being depreciated each year per the number of days we are living in it for business. Since there hasn't been any hurricanes for the past two years there isn't much to write off. Because there aren't places to stay when a hurricane wipes out an area you are allowed some wiggle room when there hasn't been a storm. You don't buy and sell your RV just because the storm season is slow. I leave it up to our CPA to keep us in IRS guidelines. He did steer us away from a LLC when I suggested it to him. We live in Texas, and I was thinking about setting it up for when hubby turns 62 and wanting to collect Social Securtiy.
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Old 02-20-2008, 02:00 PM   #25
Leaseit
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Steve, Yes you are right. It depends on the State and there are a lot of States that are not under a receprocity agreement.

Thats why i said most states and used Michigan/Georgia. OF course people should check there own state laws to understand how it works in their State.

Brad... Thank you, Yes i'll lease it of course. Na just gonna write that check if i can keep my hand from shaking. That happens on any check i write over 10.00 Dollars. Kidding around......
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Old 02-20-2008, 04:11 PM   #26
sailer
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I realy think if you are going to get the att and all the oter hoops on a montana its not worth the sales tax deal you are trading in 1 unit so you only pay on the dif so what is 6% of 25000. i think the lawyers get all of that price john
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Old 02-21-2008, 06:21 AM   #27
bsmeaton
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Quote:
quote:Originally posted by sreigle

Brad, the point is Montana requires a legal address in Montana. For fulltimers who have no other residence there is nothing illegal nor immoral about creating an LLC in Montana and registering vehicles there. Not any more than when we sold out and pulled up stakes and registered in South Dakota. We have never lived in South Dakota. We've been in the state a total of about three weeks in my entire life, although I want to explore more of the state someday.

I think the issue you are trying to address is those who maintain a primary residence elsewhere and try to use a Montana LLC to save some bucks on vehicle taxes and registrations. In that case I agree with you. My point relates to those who do not have a primary residence elsewhere.
Steve, I won't get into an argument with you as it typically proves futile, and I'm sure I will never have the last word unless it gets moderated before you can respond - but know this:
You and all fulltimers have a more unique situation than the rest of us, but unique does not mean exempt. The whole idea is to pay tax to the state you reside to help pay for your consumption and use of the resources. That is your moral and legal obligation. You do not have the priveledge to pick which state you decide to send your taxes to based on cost benefit to you. You have no real justification to set yourself aside from those folks discussed in the newscast - folks bearing license plates for states many owners have never seen.

Twist it however you want - it is an illegal activity and those South Dakota plates are like a badge of your participation. When the Colorado State Patrol task team was formed a few years ago, the first targets for tracking and investigation were Montana and South Dakota plates. My friend on the team said the RVs next to homes and in storage were the first to get shiney new CO plates - followed by a 3% use tax imposed on those workcampers and nomads that did not have documentation showing a primary residing state and taxes paid to that state. He said the team may someday be re-established if the legislature here in Colorado determines the effort to be cost beneficial to the State, but in the meantime California and Oregon are doing a pretty good job of cleaning it up.
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Old 02-21-2008, 09:25 AM   #28
bigmurf
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One of the reasons we left Colorado when we retired.
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Old 02-21-2008, 10:46 AM   #29
bsmeaton
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you have mentioned that as I recall murf - about every chance you get.
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Old 02-21-2008, 11:43 AM   #30
KJReynolds
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Boy, was that fun or what? My question wasn't about avoiding sales tax. There isn't any amount of money worth going to jail for. My question was simply - has anonyone registered their trailer in Montana under an LLC? We are hitting the road full time on May 1, 2008 in our new 3400rl and we were told by several people to register the coach in Montana under an LLC. We had no idea what using and LLC for registration had to do with the price of tea in China, so we thought we would ask if anyone else had heard of such a thing. I'm still not sure where it got twisted to include sales tax, and I still don't know what the LLC has to do with anything. I have learned this club has some very knowledgable people willing to share. Thank you all for your input. So.....does the LLC have anything to do with registering your coach because of a fulltime status?
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Old 02-21-2008, 11:58 AM   #31
bsmeaton
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If your question is about forming a limited liability company under false pretenses to enable yourself to pay lower taxes through a state that you probably will spend very little time in, then it is evasion. It doesn't matter if you are talking about sales taxes or ownership taxes. You can establish an LLC in California or Arizona just as easily as Montana.

Here is the same discussion on another forum - but you may already know that - http://www.rv.net/forum/index.cfm/fu...g/1/page/1.cfm

You'll note that the State of Washington will not let you enter the state or use the roads if operating under a Montana LLC for no other purpose than to plate your rig. Oregon is close behind.

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Old 02-21-2008, 02:20 PM   #32
exav8tr
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KJReynolds, To answer your question and staying on topic, I have not, however, I can understand you asking the question. While living in Alaska we were inundated with ads extoling the advantages of establishing an LLC in Montana. We did not look into it at the time, but it appears there are many disadvantages, I guess....

Hang in here, most questions do not evoke such a response. Spring is just around the corner and I hear it relieves cabin fever. Welcome to the "Best darned forum on the www"!!!!!
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Old 02-21-2008, 03:08 PM   #33
KJReynolds
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Thanks exavtor. We're looking forward to full time RVing, but we keep getting such strange info (like the LLC). After all of the uproar and assumptions that we are trying to avoid taxes, I still don't know what an LLC would have to do with registering my coach. We own our home in California, retired here, our kids and grandkids are near our home, our cars, truck and current coach are registered here, etc. We just don't understand why we would need to register our new rig in Montana just because we will be RVing fulltime. Oh well, it seemed like a simple question.
Thanks for the welcome aboard. I'm KJ and my husband is Bob. We travel with our 2 babies, Lucy and Scooter (Boston Terriers).
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Old 02-21-2008, 03:44 PM   #34
bigmurf
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If you don't mind the taxes in Ca. then keep things there. Some of us like low insurance, low taxes, low license fees and so on. Take a look at ESCAPEES.COM for some good info.
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Old 02-21-2008, 06:03 PM   #35
bsmeaton
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It may have been too simple of a question to get a simple answer and I apologize if I missed the mark. Without clarification or further input from you for nearly 3 days, it or course spiraled out on its own.

The assumption that you were seeking an LLC for registration or purchase of your rig was fair, given that is the only real advantage to them.

Enjoy the new 3400!
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Old 02-22-2008, 01:39 AM   #36
quarrles
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This is GREAT!! Legal advice and camping knowledge ALL in ONE PLACE!!. SHAZZAM!!

Seriously, is paying sales tax that much of expense when we consider the cost of our units and the price of fuel to enjoy them? Did someone say "A tempest in a teapot"?

John
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Old 02-22-2008, 02:50 AM   #37
8.1al
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KJ,
To put it simply, the sole purpose of the LLC is to give people living in other states a way to avoid their home states sales tax. It offers no other benefit to a fulltimer. If you establish residency in Montana there is no need for an LLC, it is just a way to offer plates to non-residents.
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Old 02-22-2008, 02:59 AM   #38
KJReynolds
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Thank you all for not hanging the naive newcomer! I actually got alot out of the responses. WOW!!! my head is still spinning.
Although I was born and raised in Oregon, I'm spent the majority of my adult life in California. No I don't mind taxes here. Taxes are a part of life. No matter where you live, you have to take the good with the bad. As long as I have my husband, my babies, grandbabies and doggie babies I'm a happy camper. I just want to move into my Montana and hit the road!!!

Thank you all again.
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Old 02-22-2008, 09:39 AM   #39
sreigle
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I guess I need to do some clarification here. Just before beginning our fulltiming we were Kansas residents. We sold our property in Kansas and therefore could legally declare residency in any state that would accept us. There was no reason for us to remain Kansas residents. We own no property there. South Dakota is our state of legal residence. We even vote there. Our federal tax forms show SD as our legal residence.

We chose South Dakota for a couple of reasons. Probably the biggest is the low taxes and low insurance rates. The second reason was that the mail service we wanted to use is based in South Dakota.

Once we no longer owned property anywhere, we were free to become residents wherever we choose, anywhere we can meet the residency requirements. There is nothing immoral whatsoever about our choice. It is just good financial sense. And it certainly is not illegal.

I do not condone being a resident in one state and registering vehicles in another to avoid taxes. If there is a legitimate business situation, that's a different story. I recall when Kansas passed laws to address this situation which was used to avoid Kansas taxes while remaining Kansas residency. And they prosecute when they find out about it. But that's not our situation.

I think the key point in Brad's comment is "under false pretenses." That does not apply to us. We are South Dakota residents, pure and simple.

KJReynolds, this thread got out of hand. Please don't let it stop you from asking questions.
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Old 02-22-2008, 10:07 AM   #40
txkrumm
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I am considering forming an LLC in Montana. That being said, I AM a 15+ year resident of Big Sky Country and proud of it. I own multiple properties and personal property in MT for which I pay taxes on. I am currently working in CA. I work a 75% on 25% off schedule, 4 week on two weeks off during which I return home to MT. I am living in the MONTANA camper during my time at work in CA. I am considering and have been advised by many in my field that setting up an LLC and having the corporation pay me as a private contractor/employee would be very beneficial. I have yet to meet with the lawyer or the accountant/financial planner but intend to do so as soon as I return home. All our vehicles are licensed in MT, we pay MT income tax, and carry MT drivers licenses. I don't think we should have any problem proving residency with all these criteria...
What do you'all think
tara
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