Then there are the tax issues. All registration takes place at your local county treasurers office. The single decal for trailers is the same as the decal for permanently registered light vehicles. Mail the completed form and a $10.30 fee for all motor vehicles, including boats and trailers, to the, Proof of ownership, for example, notarized bill-of-sale, cancelled check, purchase invoice, Include the circumstances through which you acquired ownership, This value is determined through the National Appraisal Guide (NADA) as of January 1 for the year in which you are applying, If the vehicle value is determined to be over $500, obtain a bond equal to the determined value through an insurance company, A copy of the NADA guide showing the vehicle value is required, If the vehicle value is determined to be $500 or less, no bond is required, If a NADA guide is not available for the vehicle, complete Statement of Fact. (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? Search for how to register my car in Montana and youll see a dozen sites offering services to help clients form LLCs. However, if you want to be exempt from the sales tax, you must register your vehicle under your Montana LLC. Montana Uniform Laws. The registration rate can vary depending on the age of the vehicle. The fee goes down in increments depending on how old the vehicle is. Collateral Security Interests A lending institution files a security interest against a vehicle currently titled in your name through the Vehicle Services Bureau. The single permanent decal for off-highway vehicles is white and includes the abbreviation PERM. So we are both non-residents. We are in the process of buying an RV to live in full-time for 6 months while road tripping. 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. This is odd for a remote state of only one million residents. You can be fined up to $500. Lets see what we can find out about that question! A strong reference would be the case of Thomas v. Bridges, 2013-C-1855 (Sup. 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. You must have your bill of sale notarized. First, youll need to pay a vehicle registration fee. The primary benefit is obviously the amount youll be saving up on sales tax. 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. Montana has long been a bastion of tax freedom for many years, so it was one of the original havens for supercars. However, a lender cannot collect on a security interest if the owner of the vehicle has not acknowledged the security interest by signing the title or Security Interest Action form (Form MV81B). Weve got plenty of those. They said that lots of expensive cars have Montana plates, and its all part of a tax scheme. It can also be tracked if your car is lost. Unlike the first two, this registration does not need to be renewed as long as the ownership remains the same. Toby teaches extensively throughout the US to groups of investors and professionals, with many of his courses certified for continuing education credit for legal, accounting, and real estate professionals. All rights reserved. But real moneyandethical considerationsare at stake. Press question mark to learn the rest of the keyboard shortcuts. This can work with LLCs formed in Montana as the state does not impose sales tax when residents purchase a vehicle. The LLC registers and plates the vehicle in Montana. According to Montana state law, falsifying your address or other personal information in the The debate about registering a car in Montana can seem like a lot of fuss overa piece of metal. HELOC Taxes and What Does It Mean for Your Wallet? Permanent registration does not transfer with the motor home when there is a change of ownership. If you need help with vehicle registration using an LLC, you can post your legal need on UpCounsel's marketplace. The California Highway Patrol, for example, uses a special website that people can use to report vehicles with Montana plates or other plates that are out of state. 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. Of course, there is a difference between the supercar driving Silicon Valley technopreneur with a Lambo or Ferrari and a retirement-aged couple who wishes to spend their savings on a high-end luxury car or, as we mentioned before, a high-end RV. Permanent registration Under 61-3-321(3)(a-b), MCA all trailers must be permanently registered. 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. Theres a couple of reason why you shouldnt do this: The IRS knows about this scheme and will say, Nice try, but no.. 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. 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. For vehicles over 11 years old, the fee is only $28. 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. That question depends on a lot of variables. At that time, the customer needs to renew their vehicle registration and update their address with their new county treasurers office. Its not a red flag; its something to note, he says. When we form a Montana LLC for you, we include the LLC formation fee and plate registration all for a total of $849. It is a One-time Fees for Motorboats (including Motorized Canoes and Motorized Rubber Rafts), Personal Watercraft, Motorized Pontoons and Sailboats. We are your Anytown experts! And as a bonus, you evade smog[regulations].. If your name, address, and/or county has changed or you no longer live in Montana, you must renew your registration at your local County Treasurers There are a few extra steps, but they are worth it in the long run to secure the kind of savings and benefits on offer. In 2018, the Georgia Department of Revenue had also been cracking down on owners who used Montana LLCs to register their supercars and avoid sales taxes. I use South Dakota through Americas Mailbox. ), I like paved roads and functional infrastructure, tweeted Ritholz. All rights reserved. You own the LLC outright. 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. The court ruled that even though the LLC was formed solely to avoid the sales tax, it was formed legally. Security Interest Filing Fees $8.24 for a security interest on all motor vehicles, including boats, trailers and snowmobiles. Moreover, you cannot sell the vehicle in California unless you have a passing smog check. 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. 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. Help you to eliminate sales tax on the purchase of your new RV and how to manage your annual state vehicle taxes. 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. In the end, I dont recommend anyone doing this. Dirt Legals Montana Vehicle Registration Service is just right for you if you are looking for a new car, truck, motorhome, or even a used one. It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. Depending on the circles you travel in, Id be willing to bet that you probably see many Montana plates if you frequent RV parks or car meets. Are state sales taxes and use taxes too high? Lorem ipsum dolor sit amet, consectetur adipiscing elit. 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. Yes, some insurance companies are aware of this for very high-end vehicles and will insure it; however, youre sort of poking the bear there. This fee applies to vehicles valued at $150,000 or more at the time of registration. And it has attractedplenty ofdetractors. Why does it have a Montana plate?. We may earn a commission from links on this page. (Ritholtz also hosts the Masters in Businessshow on Bloomberg Radio. It is particularly beneficial for anyone living in heavily taxed states, not just the super-rich. However, Montana isn't currently Once the vehicle is Montana has no sales or use tax and no vehicle inspections. Montana Llc For Car Registration. A Ford Transit starts at $35,925. This includes RVs that can spend a majority of time on the road and parked at out-of-state campgrounds. Share it with your network! Four of the 100 Pagani Huayras ever made were registered in Montana. Monday - Friday 8am - 5pm PST. Some states are taking measures to crack down on residents who set up shell corporations in other states, including suing for tax evasion. 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. Fees for heavy vehicles are based on the age (model year subtracted from the current year) and rated capacity of the vehicle. Was this document helpful? Companies help facilitate it. Why would somebody register a vehicle in Montana but not reside there? 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? I didnt think I would like Texas. 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%. Second, Montana does not require vehicle emissions tests or annual inspections. When you pay the ad valorem tax at your county treasurers office, they will issue a decal for your vehicle that indicates the tax was paid. Theyre scum., I cant believe so many customers have gotten away with this grift, says Alex Ross, who owns Sharkwerks, a high-performance automotive tuning shop in Fremont, Calif. No matter where in California, at every cars and coffee [gathering], look for the Montana plates. This loophole is for cutting taxes on million dollar recreational purchases. 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. Depreciation Multiplier for Calculating County Option Tax. The bond expiration date is located on the face of the Montana title. It is such a well-known tax dodge, even my own accountant has suggested I use it to shield my vehicle from California taxes, says Jeff Wright, an LA-based car enthusiast whoowns a ranch in Montana. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. The big question is this: is the Montana registration process limited to just cars? Any erasures or deletions on the title void the document. Montana Limited Liability Companies. But the interest was traditionally by the affluent looking for ways to keep costs down on high-end sports cars, or it was expensive motorhomes looking for the same. The Vehicle Services Bureau (VSB) regulates the titling and registration of motor vehicles. County Option Tax Counties may impose a county option tax based on the manufacturers suggested retail price, depreciated according to the schedule established in 61-3-503, MCA The age of the vehicle is determined by subtracting the model year from the current calendar year. But car and RV dealers objectedstrongly. Ouch. Imagine youve bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. Driving an unregistered vehicle is a crime. False statements which form the basis of the denial letter you will receive shortly in the mail. For example, a 2006 Porsche 911 in 2022 would be 16 years. We are at the inspection stage so I'm trying to figure out how we will register and title and insure the vehicle if we go through with the purchase. As I have noted in the past, the solution is to get the law changed. Some people want to avoid paying the thousands of dollars in sales tax when they purchase an RV. Its borderline tax evasion.. 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. Application for Replacement Certificate of Title, Vehicle Identification Number Inspection Certificate, Boats, Personal Watercraft and Motorized Pontoons, Light Vehicles (cars, vans, pickups & SUVs). To move a mobile home or manufactured home on a public highway, you must meet the requirements set out in 15-24-206, MCA. Its clear why people register vehicles in Montana. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is were not billing you by the hour for reading this. Be sure to place it in the correct spot, as improperly placed stickers could lead to tickets and fines. If you decide to go however, you can stay one night, and have your ID and plates in hand. On the other hand, if you live in the land of ten percent tax rates, that will be fifty grand in taxes! This supercar has an MSRP of $501,900, with the prospective buyer on the ropes for $44,167.20 in tax alone. In the worst-case scenario, the state can impound your car, and you can face prison time for a maximum of 90 days. Not so fast, Slick. Permanent registration Under 61-3-321(9)(a), MCA all travel trailers must be permanently registered. Montana requires every driver to register their personal vehicle for it to be driven legally. Montana Highway Patrol Salary and Retention Fee $10.30, $10 Montana Highway Patrol Salary and Retention Fee, county tax, $9 optional state parks support, certain special plate fees and, for light trucks, the gross vehicle weight (GVW) fees, $5 insurance verification fee if existing plates are kept on the vehicle, $10.30 Montana Highway Patrol Salary and Retention Fee, $5.15 insurance verification fee if existing plates are kept on the vehicle when permanently registered. Ultimately, Mr. Thomas was victorious. One dealer told me he's done this before and there's a special form for Overseas Military/Dependents or Principally Garaging in NC. For cars under four years old, this can be as much as $217. ( montana car registration loophole ), MCA all travel trailers must be permanently registered ( 9 ) ( a,! Bought a 2022 Corvette Stingray for $ 70,000 in Florida, where the sales.. Press question mark to learn the rest of the vehicle Services Bureau ( VSB ) regulates the titling and of... 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