This information can be found at the following web site: http://www.doj.state.mt.us/mvd/vehtitrg.htm#Taxes%20and%20Fees (http://www.doj.state.mt.us/mvd/vehtitrg.htm#Taxes%20and%20Fees) It appears that if you are out of state you can still register your MH in Montana by forming an LLC in that state.
One web site explaining this is:
http://www.btresearch.homestead.com/Vehicles.html (http://www.btresearch.homestead.com/Vehicles.html) Fred Kovol
Title: Re: Advantages of Registering in Montana via a LLC
Post by: Robin McCracken on November 12, 2002, 02:14:04 pm
Yahoo Message Number: 3082 (http://groups.yahoo.com/neo/groups/Country-Coach-Owners/conversations/messages/3082)WARNING. Registration fees might me low in Montana and this also might be a great way to avoid the taxes in your State, BUT a word of caution when registering your coach in Montana under an LLC. A number of States are in the process of fighting this arrangement (Florida, Georgia, Mississippi, Texas, California) and one state has WON (Arkansas). We at BuddyGregg Motorhomes have also been put on notice by our lenders (we have business with eight different companies) that they will no longer except any loan applications from anybody applying for a note on a motor home and wants to register under an LLC in Montana as well. Just a little information you should know if you are considering this direction.
Robin McCracken
BuddyGregg Motorhomes Sales
800-421-0031
Title: Re: Advantages of Registering in Montana via a LLC
Post by: Magnamama2000 on December 21, 2003, 09:04:55 pm
Yahoo Message Number: 7712 (http://groups.yahoo.com/neo/groups/Country-Coach-Owners/conversations/messages/7712)I want to add my 2 cents worth on this issue since I did some research and spoke to my attorney about these issues. I am a fulltimer and I had legitimate reasons for trying to figure out what to do after I sold my house. I was not trying to defraud the state, but I would like to save money if it was legal and permissable in my situation.
The way I understand this, the state legal systems look at the issue of registration is one of "INTENT." If you have not established a bona fide domicil or residency in the state you register in, the state you are domiciled in will look at your intent at registering your vehicle in another state. If your intent was to defraud your domicil state of taxes... you are screwed. The onus is on YOU to prove otherwise and they have heard and seen every excuse... The fines are huge and you could be facing jail time and felony fraud charges if they want to make an example out of you. If you don't believe it, go explore your state's legal judgements under motorhome registration and read on your own like I did... it is an eye opener.
Many states are have reciprcal agreements to exchange information when taxes and registration are involved.
As my attorney said to me, "Consider the TV factor." When I asked what that was he answered me- " The registration and taxes you paid was the cost to keep your face off the TV and out of the newspapers."
I figured that was good advice. INTENT is a big word in court. I sleep well without a worry...at least on this issue.
As Mark Twain said "The problem with lying is you have to remember too much!"
Good luck!
Title: Re: Advantages of Registering in Montana via a LLC
Post by: Fred Kovol_01 on December 21, 2003, 11:21:59 pm
A LLC in Montana is a wise choice, but plain old registration in Alaska is better. Many of my constituents use Montana to register their airplanes. But take a trip to Anchorage; it's worth it. The best Family L/P conditions and the best revocable trust laws in the nation - in short the best protection for any family or business from lawsuits and passng assets to your heirs. And as for getting a drivers license - if your are from Canada, it's just as easy. Rankings for Motorhome registration: Oregon, Alaska, New Mexico for cost. Yes, intent is important - it was an expensive lesson for me. Fred Kovol
Title: Re: Advantages of Registering in Montana via a LLC
Post by: Magnamama2000 on December 22, 2003, 09:29:29 am
I am not an attorney... just an ordinary citizen, but as I was saying, and I reiterate for any one else who might be reading this discussion, your INTENT is a primary issue. To have an established domicil state, you need to have more than just a legal document or registration... You need to have doctors, or some property, vote and/or spend a certain ( per state) amount of time in the state to qualify for a reasonable definition of domicil. If you are called to present evidence to a state on this issue, you need to be prepared to defend why you named this place your domicil and registered your vehicle there. If you do not have more than a registration or legal document to back you up, the state will probably find you were just trying to avoid sales taxes or registration fees.
So to the folks out there who have done this, I say good luck! To those who are considering it, it could cost you more than you think it will save you if your luck runs out. States are hard pressed for funds in this economy so they will be looking for ways to make up lost revenue. Be forewarned. Make sure you set up a legal fund with all that money you saved in registration and sales tax. I saw judgements of over $100K and jail time, when I read some cases online. In my humble opinion, unless it is a legitimate case of domicil, it is not worth the risk.
The Escapees club and website have good information about this issue, anyone can read and begin research into this issue. Be informed before you decide and seek "legitimate" legal advice.
When you speak of "constituents," Fred, what are you talking about? Are you in politics, law or motorhome sales?
What was your expensive lesson? You got me curious now... if I may be so rude to ask. Don't answer if it is too personal.
Title: Re: Montana LLC vs establishing domicile for tax avoidance
Post by: Bill Harris on December 22, 2003, 03:22:27 pm
domicil state, you need to have more than just a legal document or > registration... You need to have doctors, or some property, vote > and/or spend a certain ( per state) amount of time in the state to > qualify for a reasonable definition of
domicil. ......................... the state will probably find you were just
Quote
trying to avoid sales taxes or registration fees........
Hi magnamama2000,
The original comment made at the beginning of this thread was regarding the forming of a Montana LLC, thru which you may purchase a coach, tow car, or whatever. I did not see a reference to claiming a domicile, which I agree is quite different. Regarding the LLC, the key to that is to check the law in your home state, as it is those laws you have to satisfy. Montana is happy to have you form your LLC there. For example, in Michigan, you must take out of state delivery, not bring the coach into the state for the first 90 days, and then the coach must not remain in the state more than 90 continuous days after that. I talked with a Montana Attorney, spoke with my tax advisors in Mich, and they reviewed the Mich law in detail prior to advising me on this option.
If your advisors feel that the laws of your state do not allow this, you are correct in not taking this option. I plead guilty to doing many things with the "intent" of not paying any more in taxes than I am legally obliged to pay. As long as you are not commiting fraud, there should be no problem.