Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. 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. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, https://www.chp.ca.gov/notify-chp/cheaters-out-of-state-(out-of-state-registration-violators), (You must log in or sign up to post here. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana,accordingto the Montana DMV. That said, when the Rapid City Journal reached out to the department in 2018, it "estimated" an annual take of nearly $7 million. 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. And while this represents financial success for South Dakota, one can't help but wonder how much money other states are losing. A fee of $800 is assessed for motorhomes with retail values over $300,000. Car ownership is fun and convenient, but paying sales tax, use tax, or personal property tax on your car is expensive and annoying. Enjoy! I read an article recently that Massachusetts conducted police patrols in RV parks flagging folks with Montana plates. Please follow the instructions below to enable JavaScript in your browser. Their cost of living is nuts, median housing costs are bonkers, and their car taxes and registration are ridiculous. With the Vehicle Registration Service, you will now have a freshly minted South Dakota license plate, registration, and title for your car. So I do have a voter card there. There are three registration periods currently offered in Montana: 12-month, 24-month, and permanent. Charge multiple devicesThe circular design of the power strip allows for the 15" to coil up inside the body of the productmaking it easy to wrap up and throw in a bag to take with you when traveling. Asking for a friend. Speak with an Anderson Professional Advisor to get your FREE Tax Plan Strategy Session. Ouch. California is home to some of the most beautiful landscapes in the world. There are, of course, exceptions to this rule. They were listed at $2.5 million each. The practice is so popular that there are even companies with the sole purpose of facilitating out-of-state vehicle registrations in South Dakota. It really is that simple. Oh, and if you fail, you get strong-armed with another fee, and you have to get your car fixed - and dont even think about selling it in-state if it failed smog. Its no wonder people are leaving this state in droves.! It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. Vehicles that are 11 years old and older will cost $28 to register. Of course not! The DMV's mail-in process for vehicle registration has attracted thousands of automobile owners to register their wheels in the state. In addition, the smog check requirements linger; even if you live in remote and rural Northern California with practically no population density, you are still liable for all of the exact draconian smog check requirements. 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. 2 petiteminotaure 1 yr. ago Have you done this? The big question is this: is the Montana registration process limited to just cars? The only downside is that you have to put an ugly Montana plate on your vehicle. Thread starter LSUFan69; Start date Aug 30, 2022; Prev. With this piece of knowledge, you are most certainly going to be dragged into smog check your car every other year for eternity. Ready to hit the road? 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. So your best bets are to pay for repairs to get it to pass, or you can sell it to the state, which will dismantle it. An eight-year-old car, driving an average of 14,263 miles per year, will have around 114,000 miles on the odometer by year eight, so it is probably going to be due for some repairs soon, especially in exhaust and emissions. When going to get your registration handled, you will have to pay fees. Oh, thats interesting, I thought. Thats right; no more Googling smog check near me when it is time to update your sticker; we will get you on the road with no fuss. All rights reserved. Montana residents do not have to pay the sales tax on their vehicles. 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. 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. The reasons why Montana vehicle registrations are so popular expand to businesspeople. The maximum vehicle size in Montana is 102 inches wide, 14 feet tall, and 55 feet long for a single vehicle. The following cars are exempt from smog testing in California: Vehicles 8 years old or newer when paying a Smog Abatement Fee, Natural gas vehicles weighing over 14,000 lbs. The first step you must take after buying a new-to-you car in the United States is registering it with your local department of motor vehicles. 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. Of course we'll pay some ridiculous price for insurancebut we'll still save money in the end compared to renting. You only need to stay there to get your ID. Lets find out. First, you'll need to pay a vehicle registration fee. Its a $750 value, and youll walk away with a custom tax reduction plan designed specifically for you. It looks like portions of our site are being blocked! Here is the breakdown of the California fee structure associated with your car or truck registration: Transportation Improvement Fee (TIF), which is based on your vehicle value: So, for your very-average priced new car, you can go ahead and tack on an additional $253 in assorted California registration fees. 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. For example, you reside in New York City, which has an 8.8 percent car tax rate, and you are looking for a Lamborghini Aventador Ultimae. But it is also one of the most difficult places to title and tag your vehicles. All rights reserved. Most state laws require you to register your car and obtain insurance in the state where it is driven most. Montana has no sales or use tax and no vehicle inspections. It might even be a good idea. 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? What if you could avoid that, and avoid annual car inspections, just by filling out a little bit of paperwork? 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. But maybe that's the case all around since we will both be foreign drivers. 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. Visit our FAQ to jumpstart your journey! In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. Its like the Cayman Islands for car registrations. Our Montana Registration Service is tried and true if you dont want to lift a finger. Clay County Treasurer Cathi Powell estimated that up to 90 percent of nonresident registrations may be linked to other non-residents and expats residing out of state and even out of the country. So lets run the numbers according to these: The $150,000 light luxury car sales tax at 7.12 percent will cost $10,680. When you sign the bill, complete the buyer section the same as you would a Montana title application. Moreover, you cannot sell the vehicle in California unless you have a passing smog check. Ouch. So what exactly makes California so offensive to the palate that tens of thousands are walking away from it? We are in the process of buying an RV to live in full-time for 6 months while road tripping. Some states like California are poised to lose hundreds of dollars per vehicle if its residents register the vehicle outside of their home state. Imagine you've bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. And it has attractedplenty ofdetractors. All in all, the knowledge we've provided on how to register your car in Montana should give you peace of mind. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Even in a very modest state with a four percent sales tax, the tax bill for a $150,000 light luxury vehicle is still $6,000. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. Penalty fees are assessed in addition to any other fees due. From my exploratory research using the linked calculator, most counties and cities ended up averaging about ten percent in sales tax for an automobile. RVs are a highly desirable item to register in Montana because they are high-ticket items. Heggen Law Office is located in a commercial building. Im not entirely sure if you need a SD address or not to get registered. The debate about registering a car in Montana can seem like a lot of fuss overa piece of metal. The practice of registering a collectible car there, regardless of where itislocated in reality, is done in orderto avoid paying taxes and shirkemissions standards. Thats not the point. By going this route instead of buying it as an out-of-state resident, they avoid hefty sales taxes. This supercar has an MSRP of $501,900, with the prospective buyer on the ropes for $44,167.20 in tax alone. All rights reserved. Despite the initial investigation taking place in 2018, the practice is very much so alive and well today. Thats the premise of companies that offer to help you incorporate in Montana, have your corporation own the vehicle, and pay no taxes. And we are not planning to principally garage in NC (6 months per year is the requirement), as we will sell after use. Recreational vehicles, also known as RVs, can be quite expensive. I have no problem utilizing said loophole. You may also have noticed quite a few South Dakota license plates, which is not a coincidence. 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. We feel like youve earned a break once youve spent over a hundred grand on one of the most collectible Audis on the planet. There are states (i.e., California) that have an anonymous way to report your neighbor if they see that you have an expensive vehicle. The same four percent tax on a $300,000 motorhome rings up to a stout $12,000. 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