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timbuktu
06-03-2011, 03:23 PM
Just came across this organization that claims they have a process to which you don't have to pay sales tax on your new RV. They charge a "fee" to help you set up your own company in which you register your RV under. Something smells fishy here...or too good to be true. Anyone have experience or info with this? Here's the link: http://www.taxfreerv.com/. It looks like it could be a scam.

Just checked out the BBB in Montana, where the company is based. They have a rating of F. http://www.bbb.org/eastern-washington/business-reviews/campers-dealers/tax-free-rv-llc-in-red-lodge-mt-64006791/#reasonrating. Looks like the reason for the adverse grade is "due to advertising issues found by the BBB," although it shows no complaints against this company. Just thought this whole thing is interesting.

Jharris
06-03-2011, 04:58 PM
Hi timbuktu,
Not sure about Montana but up here in Canada there are two things for sure, one is death and you can probably guess the other....anyhow the taxes are there for a reason. I don't really like paying them but I understand the rationale for them. I wouldn't trust this outfit.

kkflstf
06-03-2011, 05:04 PM
Not sure about the company you mentioned but Montana has nosales tax. There are a few law firms in Mt. that specialize in the necessary paper work needed. Itís perfectly legit, thousands of people (myself included have done it for years). You rarely see high end motor homes Prevost etc. that arenít sporting Montana tags. Oregon was once also a mecca for this. Additionally South Dakota has very low sales and property tax and I know people and license there as well.

JohnDar
06-03-2011, 06:35 PM
I only did a quick prerusal of their site, but I get the impression that, for a fee, they register you as some kind of business and you don't have to pay sales tax. Like they say, if it sounds to good to be true...

kakampers
06-03-2011, 10:30 PM
Quite a few fulltimers use a Montana LLC, which is what this company is selling, to avoid paying sales tax on high-dollar rvs. The catch here is that it only works LEGALLY if you are a fulltimer. If you set one of these up, and then take the RV and physically store in another state at your home...you can expect that your home state will come knocking on your door demanding you pay YOUR states sales tax.

As a fulltimer you are NOT garaging the RV in any specific state for any length of time, therefore, no state can lay claim to the sales tax owed...this is legal, and is considered tax avoidance (legal), not tax evasion (illegal)...would be very risky if you own a home anywhere and intend to garage your RV at that location...

Bob&Patty
06-03-2011, 10:34 PM
Timbuk, I don't know what they are claiming. I also know that you cannot get a MT. drivers license unless you live there for 6 months. You can't even buy a gun there unless you have a MT. license. Not sure how you get a business without an MT. address. But we own property in MT and register our vehicles there. Mt. has no sales tax on anything. We have done a few out of state deliveries so we don't have to pay license fee's or sales tax in calif. Your trailer will be a 1 time pay only to license. If it is financed then you have to get your loan company to say it is OK for you to register it in MT. I have heard of people getting a LLC in MT. but it would make me a little nervous that I really don't have a business or property there. In our case..to the policia in Calif............prove that I wasn't in MT for 6 months.

BTW, we never get the 1 finger salute with the MT. plates on the TV and Horn. The town our property is in is still under water but our property is in the hills. Mt has really been hit hard with flooding.

Westwind
06-04-2011, 09:13 PM
I have seen the MT. plates and heard of the MT. companies that offer this service. It has been going on for years. It is suppose to be ligit according to the laws in Mt. but I do know that Massachusetts has begun chasing down owners of RV's that register there RV's out of state (ie MT) and that state was mentioned in the newspaper article. The point is that the states are hurting for revenue in these hard times and that was a way to drum up revenue. Trust me in the Northeast with it's high property taxes we are talking quite a bit of money here for the owners and the states. (RI 7%)

kakampers
06-05-2011, 07:33 AM
I have seen the MT. plates and heard of the MT. companies that offer this service. It has been going on for years. It is suppose to be ligit according to the laws in Mt. but I do know that Massachusetts has begun chasing down owners of RV's that register there RV's out of state (ie MT) and that state was mentioned in the newspaper article. The point is that the states are hurting for revenue in these hard times and that was a way to drum up revenue. Trust me in the Northeast with it's high property taxes we are talking quite a bit of money here for the owners and the states. (RI 7%)

As I said earlier...it's ONLY legal if you're a fulltimer and are not garaging your RV in any particular state....those who try to "beat the system" are taking a big chance. That's why we registered with SD instead. Would rather pay 3% sales tax and not have to explain my tags...

jmgratz
06-05-2011, 08:24 AM
I wonder how much tax revenue the state of Montana is losing. Less see if there is $2000 in sales tax and 1000 people do this that is 2000 times 1000 ... hmmmm that is quite a bit of revenue. If we keep talking about this enough maybe Montana will wake up and change their rules...just thinking out loud.

Bob&Patty
06-06-2011, 11:10 AM
Jim, DON'T THINK OUT LOUD. They might here you. Mt. has higher property tax's..........so it probably comes out in the wash. The 2 platonium (spelling) mines create alot of revenue for the state. Also they will help people that are down and out.....BUT....you will earn it. They don't have a line around the block for free-beeies like some states.

timbuktu
06-06-2011, 12:14 PM
Sounds like this particular firm seems suspect. But for those of you living in MT or that have done this, who do you recommend? I am very interested. Thanks! And by the way, it's not an issue for me to have a differenct DL vice registration on truck and RV since I am Active Duty. As it is now, my RV is registered in VA, my DL is TX, and I am stationed in CA. As long as I don't violate the rule of three, I am legal.

Bighurt
06-06-2011, 05:12 PM
I just claimed mine as a second home and claimed the sales tax and interest on my tax return...and got the money back...

timbuktu
06-06-2011, 06:46 PM
I just claimed mine as a second home and claimed the sales tax and interest on my tax return...and got the money back...

I'm assuming you itemized your deductions then. I don't have enough deductions to itemize, thus I usually take the standard deduction. So with that said, my sales tax doesn't come back to me...at least from what I can remember when I bought my current 5er two years ago.

Nonetheless, I am still interested in going the MT route, so if anyone has recommendations on who to contact to make this happen I would most certainly appreciate it.

Bighurt
06-06-2011, 07:47 PM
I'm assuming you itemized your deductions then. I don't have enough deductions to itemize, thus I usually take the standard deduction. So with that said, my sales tax doesn't come back to me...at least from what I can remember when I bought my current 5er two years ago.


I do mine electronic I just enter everything and the program uses the better of the two to prepare the forms. That being said if I enter the tax in and it takes the standard deduction over the itemized I get more back. Which means paying tax wasn't a big deal and I got it back in a long sort of way. Having a few Buisnesses helps...

timbuktu
06-06-2011, 08:52 PM
I do mine electronic I just enter everything and the program uses the better of the two to prepare the forms. That being said if I enter the tax in and it takes the standard deduction over the itemized I get more back. Which means paying tax wasn't a big deal and I got it back in a long sort of way. Having a few Buisnesses helps...

Wanna do my taxes?! :)

Bob&Patty
06-07-2011, 10:29 AM
Timbuk, the 1'st question I have for you is....do you have your new coach now?? Your profile page states you have a 2012 Cyclone. Is it ordered?? If not, do the LLC in MT. before you get it. Then have your dealer do a "out of state delivery". If you don't, then you will pay the sales tax for Ca. and the registration fees. No way around it. The Company that is doing it will have to get you the license plates and mail them to you. You can put them on the coach when it is delivered to state line in Nevada. I heard that Ca. recined the 1 year law before you could bring it into the state. I'm not real sure that is true...considering how broke the state is. You better do alot of research before you do anything. If it goes south...Ca. will make you pay all the sales and registration fee's and probably a fine on top of that. Being in the military might help you.......just don't know for sure.

Now you could buy a piece of dirt in MT. Might get an acre for 8-9K. Raw land is cheap right now. All you need is the dirt....does not have to have a house on it. We pay $100.00 a year property taxes on 21 acres and its just dirt and pine tree's. We can write off the taxes and deduct the interest on the Horn as a 2'nd home. We can register our vehicles In MT. because we have dirt their.

Another thought would be to buy your coach in MT, after you get the LLC and your problem would be solved. Good luck

timbuktu
06-07-2011, 11:23 AM
Haven't ordered the new Cyclone just yet, but plan on it soon. I'm taking my time in making sure I choose the right coach. I didn't do that last time and believe me, I learned my lesson. I've checked into CA laws and as long as I take delivery outside the state line, I'm good to go to not pay the sales tax here. And I'm going to be in CA for only a few more months before I transfer back to the East Coast. I just need to find a reputable company in MT that will set up the LLC. The organization I posted about earlier seems a little suspect with their F rating on the BBB. I'll also check in to dealers in MT...but don't know if they'll be able to compete with a wholesaler price, but I'll certainly look into it, thanks!

timbuktu
06-07-2011, 12:33 PM
I did a little research and found a company with an A rating on BBB, they are Deer Creek Corporate Services in Helena, MT. They charge a fee $1295 with an annual fee to maintain the LLC of $100. They also recommend setting up a local checking account and mailing address (for additional fees) to help ligitmize the LLC. Someone else posted an idea to register the RV in SD, which has a 3% sales tax. I am beginning to think I may just leave my registration of the new Cyclone in VA, where my current SOB is registered bc they have a sales tax the same as SD and it costs only about $30/yr to re-register. I talked to VA and there's no issue of me registering the new RV there since I already have a vehicle registered in that state and bc I will be going back. VA has an expensive annual property tax on autos, but thank goodness I'm exempt since I'm not a resident. Haven't decide yet between MT and VA, but leaning towards VA. Thanks all for your input!

Bob&Patty
06-07-2011, 06:05 PM
Sounds to me like VA is your way to go. Would have been nice have another Mt. owner though. Mt. registrations are 1/2 of what Ca. is. Trailers are a 1 time pay only perment plate in Mt..