Along those lines, your first thought might be rich people taking advantage of Montanas complete lack of sales tax. Usually, vehicle plates are issued for 5 years, after which they must be replaced. Another subreddit directed me here saying you folks know a lot about registering vehicles as non-residents. When your registration is complete, you can get a temporary license that you need to attach to your old license plates before the new ones arrive. Its clear why people register vehicles in Montana. In most cases, its easier to set up your LLC before purchasing your desired vehicle. Montana has long been a bastion of tax freedom for many years, so it was one of the original havens for supercars. Enjoy! It would be preferable to have a business connection in Montana if you want this to make sense. Have you ever wondered why you see so many expensive cars with Montana license plates on them? This supercar has an MSRP of $501,900, with the prospective buyer on the ropes for $44,167.20 in tax alone. Most states would like that information. He spent over 13 years in the U.S. Air Force as a crew chief, assigned to the B-1B Lancer, affectionately known as the Bone to those in the community, and the KC-135R Stratotanker. Or you could tell them anything other than the previous parenthetical sentence, which would be a lie. This is a phone call I get too often . This loophole is for cutting taxes on million dollar recreational purchases. Here youll need to include relevant information such as the LLCs name, duration, mailing address, information of the registered agent and members/managers, the structure of management, and lastly, the signature and title of the person filing the Articles. We totally get it. I guess we'll pay an arm and a leg. 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. It is a One-time Fees for Motorboats (including Motorized Canoes and Motorized Rubber Rafts), Personal Watercraft, Motorized Pontoons and Sailboats. 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. You may have to BUY your RV in Montana, to make it easier. Missouri car sales tax loophole 2020 / missouri medicaid expansion will it bust the budget or pay for itself / missouri has recent rate changes (wed jul 01 2020). Those days were the best. Search for how to register my car in Montana and youll see a dozen sites offering services to help clients form LLCs. Then there are the tax issues. Oh, thats interesting, I thought. The Montana LLC comes with real business responsibilities. That question depends on a lot of variables. A strong reference would be the case of Thomas v. Bridges, 2013-C-1855 (Sup. In the worst-case scenario, the state can impound your car, and you can face prison time for a maximum of 90 days. Moreover, you cannot sell the vehicle in California unless you have a passing smog check. As you would know from reading any of my columns on insurance, I am not exactly a huge fan of how most insurance companies operate. DM me if you have questions. tighter emissions standards enactedinConnecticut, requirements to significantly lower toxic air pollution, automakers including BMW, Volkswagen, and Ford. Then, ensure the exact name of your LLC is listed as the buyer of the car. 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. And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. If this option is chosen, the vehicle cannot be sold unless first registered in the owners name or the owner is a Montana dealership. Yes, I know, you are going to argue that you dont own the car - the LLC does. Snowmobiles that are used exclusively as rentals may be registered annually for the first two years, after which they must be permanently registered. You do not need to spend a night there to get registered. It is no coincidence that the states with the highest car taxes also have the strictest inspections and emissions testing, which Montana doesnt have. Requirements The registration must be done through the County It is also required if you plan to sell your vehicle in the future. After the bond expires, a new Montana title may be issued without the bond designation and expiration date. It really is that simple. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Your exotic or expensive car or RV is purchased by your LLC. It must be with you at all times of driving. Plus, am I committing insurance fraud saying that I reside there? Its diamond blue metallic painta hue so subtle that at some angles, it looked lavenderand throaty 3.3-liter flat-six engine were enough to bring $141,000 and more than 120 comments on its listing. Second, Montana does not require vehicle emissions tests or annual inspections. 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. Both my husband and I have a German and International Driver's license. I'm not military so it would be the latter. A provision in the Montana Code allows owners of a light vehicle that is eleven years old or older to permanently register the vehicle for only $87.50. MVD Headquarters, Driver Services Bureau, Vehicle Services Bureau (formerly Title & Registration Bureau), and Operations & Customer Support. Under state law, all motor vehicles including motor homes; motorcycles and quadricycles; travel trailers; utility trailers; all-terrain vehicles; sailboats over 12 feet in length; motorboats, jet skis and other motorized vessels; and snowmobiles must be registered with the state. Last but not least, there is the idea that this process has to be highly complicated. The big question is this: is the Montana registration process limited to just cars? Class A motorhomes are high-end luxury vehicles that start in the $100k range (often more like $150k) and go up to seven figures. Well, that will come out to $35,925 in sales tax. Thats weird. But after seeing more of them, I said, I know whats going on here. This is perfectly legal. If you bought it from a private party or dealer, you'll need the title. Well, this might not just be your imagination. You can be fined up to $500. Otherwise, you might receive a new proof of registration that you must keep with your vehicle until you get your new plates. It can also be tracked if your car is lost. Registration rates can differ based on the age of the vehicle, which is found by subtracting the model year from the calendar year. 5-10 years old. "My car was stolen and the insurance company won't pay me." Toby is an attorney on a mission to help investors and business owners keep and grow more. Theres a couple of reason why you shouldnt do this: The IRS knows about this scheme and will say, Nice try, but no.. First, it does not charge sales tax on personal property. So, my suggestion would be: Dont do it. Thats correct; no nagging smog checks. If youre not a resident, you can still enjoy this option by forming an LLC and purchasing your vehicle under the LLCs name. If youre not a resident of Montana, your vehicle must display your new license plate alongside the license plate of your home state. For cars under four years old, this can be as much as $217. For vehicles over 11 years old, the fee is only $28. Check out our Montana Vehicle Registration Service to see how our team can do the hard work for you, or read the articles below to learn more about the process. So how much can the affluent benefit from a Montana car registration? You want to register your car or truck in Montana to save some dough on sales tax. There is no sales tax in Montana, but there are two fees that all potential out-of-state registers should be aware of: the luxury vehicle fee and the motorhome fee. First, Montana has long been known for its lax approach to driving laws, most memorably the brief period where the interstate had no speed limit. You may register a motorcycle or quadricycle for both highway and off-highway use by paying the fees for both uses. 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. How the Montana LLC Vehicle Registration Works. Of course not! If you form a Montana LLC and have it purchase and take title to a motorhome or RV, you won't owe any sales tax in Montana. We are your Anytown experts! I don't like the waiting time either as it's wasting time for us. Anyone from any state can register their car in Montana, although it is not quite as simple as some of our other out-of-state registration programs. I use option 3. Others acquirea mailbox address or property at whichthey can claim Montana residency. If youre going to use this strategy of buying your vehicle in Montana but residing somewhere else, most online law firms will tell you to set up a Montana LLC and then register your vehicle in the state of Montana. This fee applies to vehicles valued at $150,000 or more at the time of registration. To apply for a duplicate Montana registration decal or license plate, visit your local MT county treasurers office in person and: Provide your MT license plate number (or show your vehicle The fee goes down in increments depending on how old the vehicle is. This was not a trailer over the top by any stretch of the imagination, either. 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. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. Was this document helpful? Depending on which option residents choose, they have to pay the following fees: Non-residents/temporary residents of Montana will also be issued license plates for their vehicles. But if you do, that Montana plate will pop up. Motor vehicles registered in the State of South Dakota are subject to the 4% motor vehicle excise tax. Montana requires every driver to register their personal vehicle for it to be driven legally. $262.00. No, submit to the vehicle services bureau or your county treasurers office. Montana has no sales tax. There are, in fact, other states that do not require a sales tax. If you need a new title with your name printed in it, it will most likely show up by mail within two to three weeks. Ct. LA May 7, 2014), other states are quite aware of the Montana LLC scheme, and they frown upon this practice. Note: When we say car, were referring to all the vehicles Montana DMV defines as light-vehicle. Seems I can do everything by mail from a company like Americasmailbox. Please note: you must update your address with the MVDs Driver Services Bureau within 10 days of moving. But car and RV dealers objectedstrongly. Your biggest issue is going to get affordable auto insurance having not lived in the US for many years. This website may supply general information about the law but it is for informational purposes only. With that being said, though, there are some requirements that must be met first. Montana residents moving to another county may continue to use their current plates until their annual registration renewal is due. All title, registration and license plate fees are required. For example, the age of a 2005 model year sport utility vehicle registered in 2004 would be -1 year, resulting in a depreciation multiplier of 100%. Plate of your LLC is listed as the buyer of the car the... To sell your vehicle in California unless you have a passing smog check was stolen and the insurance wo... 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