(Ritholtz also hosts the Masters in Businessshow on Bloomberg Radio. 2022 Dirt Legal. Apparently accounting software and Microsoft Excel haven't reached South Dakota yet. 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. (Progressive already said they'd insure both of us as foreign drivers in N.C.). That said, when the Rapid City Journal reached out to the department in 2018, it "estimated" an annual take of nearly $7 million. And youre sort of poking the bear there with your local state government, as well as the IRS. Technically, the practice is legal. If you decide to go however, you can stay one night, and have your ID and plates in hand. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. DM me if you have questions. 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). But dont worry, you dont have to get to it immediately: the infinitely reasonable State of California will grant you a generous 60-day temporary operating permit (TOP), for a nominal fee of $50, of course. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Of course not! Reddit and its partners use cookies and similar technologies to provide you with a better experience. Revenue generated from vehicle registration fees is a fairly stable and significant contributor to the state general fund, as it is the fourth largest general fund revenue source. This scheme doesnt really pay off if youre buying a used 2004 Camry, but its tempting if you want to buy a six-figure supercar. Thread starter LSUFan69; Start date Aug 30, 2022; Prev. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. Theres a couple of reason why you shouldnt do this: The IRS knows about this scheme and will say, Nice try, but no.. (Californias sales tax, for instance, is 7.25%.) Do you need legal help with vehicle registration using an LLC? . Look, tactical vehicles in the army (or any foreign army, for that matter) are designed from the ground up to take troops, supplies, cannons, missiles, food, fuel, and mail to the farthest ends of the earth. Now if I got pulled for speeding maybe they would question me. Plus, am I committing insurance fraud saying that I reside there? But, why again do you have to pay a fee for a service they dont require? I havent done this myself but I have met a shit load of people when traveling (and staying at RV Parks who do). So here is the rundown on the smog program for the state. Thats a whole truck! We don't believe that its for us to lecture that person to do that or not. Overall, there has been an exodus of 275,000 jobs, and over $76 bn in capital funds have egressed the state since about 2008, with some 13,000 total companies leaving California. It might be wise to check with the licensing and registration agency in your . Include the bill of sale as well. Got a tip? In addition to normal registration fees, individual counties in Montana may also impose a so-called local option tax of up to 0.7% of avehiclesretail value, providingdirect revenue. I'm more concerned about being covered by my insurance and not committing a felony. Dirt Legal is here to give you options for registering your car or truck out of state to save you a bundle of cash and get you out of smog checks. Transportation Improvement Fee (TIF), which is based on your vehicle value: $0-$4,999: $27. Essentially, it works like this: You form an LLC business in Montana. The Montana Scheme According to Montana's Department of Motor Vehicles, you need no state driver's license to title and register your vehicle in Montana, but you must prove residency in. After doing a bit of research, he found a loophole that permitted him to register his vehicle in Clay County while living in Mexico. For somewhere around 1200$ there would be nothing to do from our side except fill out a form. Moreover, you cannot sell the vehicle in California unless you have a passing smog check. They dont make enough to live in California anymore, but they are too broke to follow their jobs. False statements which form the basis of the denial letter you will receive shortly in the mail. Montana has long been a bastion of tax freedom for many years, so it was one of the original havens for supercars. We'll make it happen for free, How to Insure a Vehicle Owned by a Montana LLC. Home blog Shows Coffee with Carl Should I Register My Vehicle in Montana? Its no wonder people are leaving this state in droves.! Yes! Whatever your views are on smog and emissions (we all think smog is gross), we all know that smog gear on cars makes them less reliable and less efficient, and smog gear is always failure-prone. 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. Tagged: Montana, Montana Registration, Montana LLC, outofstateseries. This will allow you to save a ton of money in sales tax, especially if you purchase a very expensive vehicle. If you purchased the vehicle from a private party, send in the title the private party gave you, with either the LLC name or your name listed. If you bought it from a private party or dealer, you'll need the title. Pay (All) Fees. 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. Though we find it hard to believe, the report claims that there isn't an exact figure that shows how much extra money the South Dakota Department of Revenue has earned from this practice, as the registration fee varies based on vehicle age, type, and weight class. Suppose he is purchasing ten units and owns a business in LA. Remember that these are the California car registration taxes assessed upon initial purchase. Second, Montana does not require vehicle emissions tests or annual inspections. Ready to hit the road? Lets find out how you can buy one, and what it takes to make it street-legal! They were listed at $2.5 million each. I can't figure out if that is needed before the registration can happen or if it's when you want to get your SD driver's license eventually. On top of this, you have to either be extorted with the smog abatement fee or have your car smog checked. I'm an American citizen but have lived abroad the past 7 years. If you cant afford the taxes to register your supercar in the state where you live, perhaps you cant afford the car, says Barry Ritholtz, a proud vintage Corvette and Defender owner and chairman of Ritholtz Wealth Management LLC. In 2017, Montana legislators proposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000; aimed at out-of-state enthusiasts, House Bill 650 was nicknamed the. Got an idea for a future Coffee with Carl? 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. 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. Can be from a hotel or campground. 3 min read. So, you would be legally obliged to pay a tax . This post is part of our Out of State Series explaining the benefits of using our Montana LLC Program to register your vehicles out-of-state. The cool thing about making a military Light Medium Tactical Vehicle (LMTV) off-grid is that it will take you farther than you might even want to go. If it's anything like California all of those things can be handled automatically by a third party for a small fee. This summer, the average age of a car on the road is 12.1 years old, up from 11.9 in 2020. I found myself in Salt Lake City and saw the same thing. For vehicles that are eight years old and newer, lucky you! If you do not receive a billing notice approximately 60 days before your vehicle's registration expires, please call us at 1-800-777-0133 to find out what your fees are. But what happens when you cross streams? Youre welcome. Car owners from Mendocino, Calif., to Miami aretitling collectible cars in Montana, evenespecially, in factif they dont live there. The basic concept of the process is known to many, but the specifics are a little harder to nail down. 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. The second highest, Clay County, had just 7,241 registrations during the same time; however, that represented more than one-fourth of all vehicles registered in the county. In addition to state sales tax on vehicles, owners must pay car registration fees according to the age of the vehicle and the length of registration desired (one or two years). On the national average of 7.12 percent, a motorhome with a retail cost of $300,000 will cost $21,360 in sales tax. they are necessary and 2.) The longer you delay payment, the greater the penalty amount will be. In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. So I do have a voter card there. You'll simply need to produce the certificate of origin from the manufacturer. We've got the cure. It has gotten so out of hand, even people in Florida do the Montana tax grift, Ross says. You'll sign your name as the manager acting on behalf of your LLC. California is home to some of the most beautiful landscapes in the world. 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. However, Montana isn't currently cracking down on shell corporations set up for the sole purpose of purchasing vehicles in the state because state law doesn't require someone to specify the LLC business purpose when they register the LLC. If the prime movers for Montana license plates on cars that dont live in Montana are exotic cars, then its got to be for the super-rich, right? This article is part of my series on the benefits of registering vehicles out of state. The debate about registering a car in Montana can seem like a lot of fuss overa piece of metal. This loophole is for cutting taxes on million dollar recreational purchases. I have no problem utilizing said loophole. California has some things going for it, but affordability is not one of them. So, an industry has sprung up to assist people from other states who want to take advantage of Montanas laws while living elsewhere. 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? Non-Residents: Under 61-3-701 through 704, MCA non-residents who are gainfully employed in Montana must present their current out-of-state vehicle registration to the county treasurer's office. 5 Star Registration includes all these fees in our service. Press question mark to learn the rest of the keyboard shortcuts. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. Motorcycle safety fee: $16. But much has changed over the past few decades. And youve heard of toy haulers. You get a Skoolie-toy hauler hybrid that has no name. Lecture that person to do that or not make enough to live in California anymore, but the specifics a. A felony concerned about being covered by my insurance and not committing a felony you have to pay fee! Vehicle registration using an LLC business in Montana am I committing insurance fraud saying that I there! 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