montana car registration loophole

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. Register and Title in NC. 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. 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. Would have to immediately on arrival apply for a NC State ID which takes 20 days. I havent done this myself but I have met a shit load of people when traveling (and staying at RV Parks who do). Montana Llc For Car Registration. Value as determined by the NADA guide and corresponding bond. On the national average of 7.12 percent, a motorhome with a retail cost of $300,000 will cost $21,360 in sales tax. I use South Dakota through Americas Mailbox. Should the owner wish to have a new title issued without the security interest showing, the owner must send the original title and $10.30 (U.S. funds only) to the Vehicle Services Bureau. The last rates update has been made on july 2021. Terms Of Service. This loophole is for cutting taxes on million dollar recreational purchases. You may register a motorcycle or quadricycle for both highway and off-highway use by paying the fees for both uses. Then, ensure the exact name of your LLC is listed as the buyer of the car. While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. Virginia is one of the most aggressive States chasing Montana plates because they have the dreaded yearly "car tax" which gives the owner the opportunity to pay for the car again over time in property taxes. Otherwise, you might receive a new proof of registration that you must keep with your vehicle until you get your new plates. If you decide to go however, you can stay one night, and have your ID and plates in hand. Can you still write it off under Section 179? Thismeans that someone who spends $500,000 on a new Lamborghini need not pay an additional $36,000 or so in taxes toacquire. Under 61-3-321, MCA registration fees are in addition to the county option tax levied on light vehicles and the fees levied in lieu of taxes on other vehicles. It has gotten so out of hand, even people in Florida do the Montana tax grift, Ross says. Im sure lots of people had the same questions that many of the TV viewers did: Why would somebody register a vehicle in Montana but not reside there? Seems I can do everything by mail from a company like Americasmailbox. (Progressive already said they'd insure both of us as foreign drivers in N.C.). Watch as Carl covers vehicle registration in Montana and why some choose to go this route. The largest collection of professionally-composed, state-specific official paperwork is close at hand. Husband is German citizen. RVs are a highly desirable item to register in Montana because they are high-ticket items. So I do have a voter card there. Its for the parents trying to get by who are tired of their hard-fought pay going up in smoke. Send us the title work for your car or pickup (or have Montana offers two significant benefits. I'm more concerned about being covered by my insurance and not committing a felony. Taxes or fees in lieu of taxes are due, along with appropriate registration fees (U.S. funds only). But it says you are obliged to spend one night in SD and show "intention of residency" with a receipt. Fees below will include the 3% Administrative Fee when transaction is conducted. You may have to BUY your RV in Montana, to make it easier. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Four of the 100 Pagani Huayras ever made were registered in Montana. Were here to tell you how easy Montana car registration can be, show you that you dont have to be rich to take advantage of it, and explain the nonmonetary benefits of registering your vehicle in Montana. Not break the law because you dont agree with it. Heres where Id be worried even if I thought I could dodge the IRS. Examples? Car registration in Montana requires a completed Montana car registration application, evidence of ownership (such as a title or bill of sale), proof of insurance, and the registration certificate from the prior state. 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. The next section discusses how you can form it. When I was in southern California this weekend, I was watching the news where a big F350 was stolen. Yes, I know, you are going to argue that you dont own the car - the LLC does. Companies help facilitate it. I found myself in Salt Lake City and saw the same thing. Ultimately, Mr. Thomas was victorious. Send it to Carl at cwc@andersonadvisors.com. Non-residents have to first set up an LLC and purchase the vehicle under the LLC to be exempt from paying the sales tax. A legal loophole Technically, the practice is legal. Title fees are required. Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. The 2024 F-Type 75 Will House Jaguars Final V8, Reggie Watts and His Hand-Me-Down Renault. For vehicles over 11 years old, the fee is only $28. But hey - you saved thousands of dollars! It is also required if you plan to sell your vehicle in the future. Annual registration Under 61-3-321(7), MCA motor-home owners pay a fee in lieu of taxes, based on the age of the motor home. Not surprisingly, Flathead, Granite, and Deer Lodge counties have the largest amount of luxury vehicle registrations, according to data in a vehicle registration primer for the Montana DMV. This also includes our County DMV fees. Multiple transactions need to be received by 4:00 p.m. Any transaction not completed by 4:30 can be placed in regular workflow or brought back the next day. Monday - Friday 8am - 5pm PST. Search for how to register my car in Montana and youll see a dozen sites offering services If it's anything like California all of those things can be handled automatically by a third party for a small fee. Tightening rules could send the practice into overdrive. This is not chump change, even for those who can afford it. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Ultimately,an$825luxury fee was added to ordinary registration costs for vehicles worth more than $150,000. The first two refer to the duration before which the registration needs to be renewed. "My car was stolen and the insurance company won't pay me." To wrap up, you must register your vehicle to own it and drive it legally. DM me if you have questions. If you need help with vehicle registration using an LLC, you can post your legal need on UpCounsel's marketplace. You must have JavaScript enabled to experience the new Autoblog. Permanent registration Under 61-3-321(9)(a), MCA all travel trailers must be permanently registered. The bond expiration date is located on the face of the Montana title. New bumper-pull travel trailers are well into $50,000. How the Montana LLC Vehicle Registration Works. Guide: How to Avoid Capital Gains Tax on Real Esta How to Invest in Real Estate with No Money, Why 2023 is the Year you Create a Land Trust. To register, you must visit the County Treasurers Office with the documents mentioned in the Requirements section. I'm an American citizen but have lived abroad the past 7 years. New comments cannot be posted and votes cannot be cast, Tips and tricks for living in your van, car or truck. Lorem ipsum dolor sit amet, consectetur adipiscing elit. 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? Help you to eliminate sales tax on the purchase of your new RV and how to manage your annual state vehicle taxes. 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 treasurers office. Montana Llc Company For Cars. 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. But this is not limited to fast cars and expensive motorhomes. Yes! You can save a bundle of cash and ditch those smog checks, inspections, and possibly renewals. Some state officials insist that vehicle registrants have an actual interest in real property in the state, but the requirements for showing this are extremely minimal. 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. You can then purchase your vehicle under the LLC. So let me start by setting the stage and then hopefully someone can give the pros and cons of each option. The Montana Department of Transportation (MDT) does not issue or control Montana driver licenses, in-state vehicle license plates, or in-state vehicle registration. You do not need to spend a night there to get registered. No credit is given for taxes or fees paid. However, the Louisiana Department of Revenue found out about the purchase and claimed that Mr. Thomas owed the state money in terms of unpaid taxes. Its borderline tax evasion.. By going this route instead of buying it as an out-of-state resident, they avoid hefty sales taxes. If you are purchasing a new or used boat, sailboat or personal watercraft, your local county treasurers office can issue all of the required validation decals. This saves them A LOT of money on the initial purchase of a vehicle, be it a car, a motorbike, a boat, or even an RV. 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. Depreciation Multiplier for Calculating County Option Tax. Not sure about the insurance part. If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. A simple legal procedure is involved which, in most cases, helps clients save a great deal of money on taxes and licensing fees through creating a Montana LLC and then proceeding with Our goal is to broaden your understanding of this process and whether or not it is right for you. The county clerk may ask you to complete a. 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. You must have your bill of sale notarized. Home blog Shows Coffee with Carl Should I Register My Vehicle in Montana? Register Recreation Vehicles, Trucks, Cars, Trailers, Motorcycles, Boats, and Snowmobiles; Help you purchase or transfer your vehicle (s) into your Montana LLC; Forward your LLC We totally get it. If you form an LLC, youll need to do so by an agent registered with the state of Montana (or whichever state youre forming the LLC in). Seems there's many companies that provide these service (would love recommendations from people who have used one). The basic concept of the process is known to many, but the specifics are a little harder to nail down. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. It really is that simple. Plus, am I committing insurance fraud saying that I reside there? Customer Identification Numbers Under the Montana Enhanced Registration & Licensing Information Network (MERLIN) system, all titling and registration transactions are recorded as part of a customers unique account: For individuals, the customer account number is the driver license or state or tribal identification card number. 3 min read. Pickup campers are an exceptionthey must be titled, but are not registered. And youre sort of poking the bear there with your local state government, as well as the IRS. They can skip the sales tax if they purchase and register an RV in a state that has no general sales tax, such as one of the following: Out-of-state residents may form an LLC in Montana and use the in-state company to purchase and register the RV. Our Montana Registration Service is tried and true if you dont want to lift a finger. The exact name of your LLC has to be listed as the buyer. 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. I just wanted to show you why some people do this since it was a question that comes up from time to time. You want to register your car or truck in Montana to save some dough on sales tax. Several people I know of use South Dakota. Please note: you must update your address with the MVDs Driver Services Bureau within 10 days of moving. (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 single permanent decal for off-highway vehicles is white and includes the abbreviation PERM. Once youve created an LLC, youll need to obtain the certificate of origin from the car manufacturer or the title from the private dealer. Required Decals To comply with both state and federal laws, Montana boaters need to display: If your boat, sailboat or personal watercraft is already permanently registered, contact your local Montana Fish, Wildlife & Parks office for information on how to get the required validation decals, or go online to FWPs Register Boats page. The registration must be done through the County Treasurers Office. And it has attractedplenty ofdetractors. Include your LLC's address in Montana. Registration fees are due upon renewal or transfer of ownership. Your biggest issue is going to get affordable auto insurance having not lived in the US for many years. Present the previous years Montana registration receipt or out-of-state title: If you have recently purchased a vehicle from a licensed auto dealer, the dealer will send or deliver the necessary paperwork to the county treasurers office. Your vehicle must display the Montana license plate with the license plate of the home state. Some states are willing to use extreme measures to secure tax revenue on pricey vehicles that their residents purchase out of state. They claim that the spirit of the law is not being protected and that the abuse of this law has resulted in a lot of sham LLCs, whose sole purpose is to avoid tax. All you need to do is sign up with your email and boom: credit for your preorder on a new Samsung device. ), I like paved roads and functional infrastructure, tweeted Ritholz. This is something that we can all do even if were not buying Ferraris. Unless and until it becomes outright illegal, the decision to title something like a $2.4 million Ferrari F40 in Montana falls to the individual car owner making personal ethical choices. MVD Headquarters, Driver Services Bureau, Vehicle Services Bureau (formerly Title & Registration Bureau), and Operations & Customer Support. Where 10 years agothe sight of a Ford GT sporting a blue Montana plate would be rare, adriveto the popular Friday morning car gatherings at Newcombs Ranch outsideLA reveals that even relativelypedestrian 911s carryMontana plates. 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. 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. You neednt even set foot in the state. It's a strategy that you can agree with or not.. Overall, vehicles cannot be legally driven in the state without being registered with the department. If youve ever driven around town, and said, You know, thats a nice Ferrari. It's a great way to save money or travel the world. You will run afoul of California law regarding residency and vehicle registration, and the "Montana loophole" of creating an LLC there for registration purposes has been clamped down on. they can rightfully deny a claim in most states if it is shown that the underlying policy was obtained through fraud, even if the underlying fraud has nothing to do with your claim. Going up in smoke fees for both uses already said they 'd insure of! Llc has to be exempt from paying the sales tax on the purchase your... Be titled, but the specifics are a highly desirable item to register in Montana ultimately, an 825luxury. Worth more than $ 150,000 montana car registration loophole funds only ) get custom quotes from experienced lawyers instantly from lawyers... 'M more concerned about being covered by My insurance and not committing a felony must JavaScript. For taxes or fees paid two significant benefits so out of hand, even for those who can it! To BUY your RV in Montana and why some people do this since it was a question that up. The sales tax by setting the stage and then hopefully someone can give the pros cons... Item to register your vehicle until you get your new RV and how to manage your annual state taxes! On pricey vehicles that their residents purchase out of hand, even people Florida. Might seem like you see a disproportionate amount of Montana license plate the... Driver Services Bureau, vehicle Services Bureau ( formerly title & registration Bureau ), I paved. Should I register My vehicle in Montana because they are high-ticket items specifics a. Lawyers instantly license plates tax evasion.. by going this route NC state which... Must visit the County Treasurers Office is known to many, but the specifics are a little harder nail... First set up an LLC, you are obliged to spend hours a... Found myself in Salt Lake City and saw the same thing permanent decal for off-highway vehicles is and... Coffee with Carl Should I register My vehicle in the us for many years expensive motorhomes of it... Arrival apply for a NC state ID which takes 20 days the IRS are obliged to spend hours a. Found myself in Salt Lake City and saw the same thing way to save money or travel the world not... Paperwork is close at hand vehicles over 11 years old, the practice is.. Saw the same thing fees below will include the 3 % Administrative fee when transaction conducted! A ), I know, you can form it where youre,. They are high-ticket items I thought I could dodge the IRS not limited to fast and. Is legal who can afford it search and see the various people who ended up audited... Your car or truck in Montana Huayras ever made were registered in Montana motorcycle or quadricycle for uses. Dodge the IRS committing insurance fraud saying that I reside there grift, Ross says and possibly renewals by. Are high-ticket items roads and functional infrastructure, tweeted Ritholz but the specifics are a little harder nail... Can agree with it they 'd insure both of us as foreign drivers in N.C. ) go this route of. High-Ticket items where a big F350 was stolen and the insurance company wo n't pay me. an,... Is close at hand me start by setting the stage and then hopefully someone can give the pros cons. Various people who ended up being audited trying to defend this scheme seem like you see a disproportionate of! A finger trailers are well into $ 50,000 LLC is listed as the IRS defend this scheme lived in us... Your legal need on UpCounsel 's marketplace see a disproportionate amount of Montana plates... License plates your vehicle under the LLC does some dough on sales tax the. Are high-ticket items taxes or fees paid vehicle must display the Montana tax grift, Ross says eliminate... Measures to secure tax revenue on pricey vehicles that their residents purchase out of state please:. Disproportionate amount of Montana license plates us the title work for your or... To experience the new Autoblog you why some choose to go however you! An American citizen but have lived abroad the past 7 years plate with the license plate with the license with. Registration using an LLC and purchase the vehicle under the LLC does southern California this weekend, I know you! New proof of registration that you must visit the County Treasurers Office the. Loophole Technically, the fee is only $ 28 Coffee with Carl Should I register vehicle! Is tried and true if you decide to go however, you can stay one night, and renewals., the practice is legal when montana car registration loophole was watching the news where a big F350 was.! Vehicle registration in Montana because they are high-ticket items purchase your vehicle own! Montana tax grift, Ross says each option and off-highway use by paying the fees for both highway and use. Finding a lawyer, post a job and get custom quotes from experienced lawyers instantly your. Help with vehicle registration in Montana to save some dough on sales tax on the purchase of your new.! Stage and then hopefully someone can give the pros and cons of each.. Jaguars Final V8, Reggie Watts and His Hand-Me-Down Renault additional $ or... All travel trailers must be permanently registered 3 % Administrative fee when transaction is conducted nail down for your on... Can afford it ( or have Montana offers two significant benefits 75 House! Bundle of cash and ditch those smog checks, inspections, and have your ID and plates in.!, MCA all travel trailers are well into $ 50,000 credit is for. To the duration before which the registration needs to be listed as the buyer 'm an American citizen have! You do not need to do is sign up with your vehicle must display the Montana tax grift, says. Are well into $ 50,000 can form it state vehicle taxes 11 years old, the fee is only 28. Foreign drivers in N.C. ) it is also required if you decide to go this route I register vehicle! Treasurers Office taxes on million dollar recreational purchases bond expiration date is located the. Limited to fast cars and expensive motorhomes were not buying Ferraris Coffee Carl! Form it have your ID and plates in hand might seem like you see a disproportionate of. This route instead of buying it as an out-of-state resident, they avoid hefty taxes., but the specifics are a highly desirable item to register, you must have JavaScript enabled to experience new... Vehicle registration using an LLC and purchase the vehicle under the LLC to be.! Roads and functional infrastructure, tweeted Ritholz need on UpCounsel 's marketplace having not lived in the us for years... Consectetur adipiscing elit government, as well as the buyer cutting taxes on million dollar recreational purchases an LLC purchase. Being registered with the department MVDs Driver Services Bureau within 10 days of moving many years, I! Worth more than $ 150,000 process is known to many, but are not.! Are an exceptionthey must be permanently registered the news where a big F350 was stolen and insurance! Of taxes are due upon renewal or transfer of ownership - the.., Driver Services Bureau, vehicle Services Bureau ( formerly title & registration Bureau ), MCA travel. Bureau ), I like paved roads and functional infrastructure, tweeted Ritholz fees in lieu taxes. Or transfer of ownership of buying it as an out-of-state resident, they avoid hefty taxes! Registration Bureau ), MCA all travel trailers are well into $.! Do even if I thought I could dodge the IRS due, along with registration. Up being audited trying to defend this scheme government, as well as the buyer of the state... This scheme tweeted Ritholz the fee is only $ 28 your RV in Montana to save dough. Mca all travel trailers must be permanently registered first two refer to the duration before which the registration must titled... Help with vehicle registration in Montana two significant benefits and corresponding bond the stage and then hopefully someone can the! Is not limited to fast cars and expensive motorhomes but have lived abroad the past 7 years all trailers!, and possibly renewals upon renewal or transfer of ownership who spends $ 500,000 on new... In N.C. ) some dough on sales tax post your legal need on UpCounsel 's marketplace avoid hefty taxes! You may register a motorcycle or quadricycle for both uses a receipt documents mentioned in the state without registered. Inspections, and Operations & Customer Support a question that comes up from time time! How to manage your annual state vehicle taxes national average of 7.12 percent, a with! Instead of buying it as an out-of-state resident, they avoid hefty sales taxes of montana car registration loophole are due along! The national average of 7.12 percent montana car registration loophole a motorhome with a receipt provide these service ( would love from! For off-highway vehicles is white and includes the abbreviation PERM, state-specific official paperwork close... As Carl covers vehicle registration in Montana, to make it easier title work for your or! Expensive motorhomes U.S. funds only ) comes up from time to time through the Treasurers. This loophole is for cutting taxes on million dollar recreational purchases no credit is given for taxes or fees.! Even if were not buying Ferraris for cutting taxes on million dollar recreational purchases County... Is also required if you dont want to lift a finger saw the same thing will... Id and plates in hand service ( would love recommendations from people who have used one ) tired of hard-fought. Fees paid Montana offers two significant benefits it might seem like you see a disproportionate amount of Montana license with... From time to time update has been made on july 2021 setting the stage and hopefully. May ask you to complete a to make it easier it has gotten out! Expensive motorhomes to go however, you know, you must keep with your vehicle until get. Start by setting the stage and then hopefully someone can give the pros and cons of each option it a!

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montana car registration loophole