When I was in southern California this weekend, I was watching the news where a big F350 was stolen. The basic concept of the process is known to many, but the specifics are a little harder to nail down. Ct. LA May 7, 2014), other states are quite aware of the Montana LLC scheme, and they frown upon this practice. Registration fees are due upon renewal or transfer of ownership. Establishing a Chain of Ownership for Your Vehicle, 2. 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. How the Montana LLC Vehicle Registration Works. Your vehicles registration certificate is absolutely essential. I decided to pass on his offer. Security interests on newly purchased vehicles or vehicles new to Montana are filed at the county treasurers office. Collateral Security Interests A lending institution files a security interest against a vehicle currently titled in your name through the Vehicle Services Bureau. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. There are a few key reasons why Montana plates keep popping up, and it is not your imagination. Present the previous years Montana registration receipt or out-of-state title: If you have recently purchased a vehicle from a licensed auto dealer, the dealer will send or deliver the necessary paperwork to the county treasurers office. 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. Application for Replacement Certificate of Title, Vehicle Identification Number Inspection Certificate, Boats, Personal Watercraft and Motorized Pontoons, Light Vehicles (cars, vans, pickups & SUVs). This loophole is for cutting taxes on million dollar recreational purchases. Moreover, you cannot sell the vehicle in California unless you have a passing smog check. Both my husband and I have a German and International Driver's license. If someone previously registered a vehicle in another state, the Montana DMV will require him or her to show a proof of sales tax payment. Limited-Time offer: FREE (a $750 value. Tax Attorneys, CPAs & EAs who specialize in working with businesses and investors. First, it does not charge sales tax on personal property. A Montana LLC (Limited Liability Company) combines aspects from other business entities: corporations, partnerships, and sole-proprietorships. Yes! 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. 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. I just wanted to show you why some people do this since it was a question that comes up from time to time. Luckily, even if youre a non-resident, you can form a Montana LLC and purchase the vehicle under the LLC to gain the same privilege. Check your in-box to get started. Sidestepping Sales Tax on Large Vehicles, Chain of ownership document (original copies). You may also have noticed quite a few South Dakota license plates, which is not a coincidence. Be prepared to pay title and security interest/lien filing fees. It's a strategy that you can agree with or not.. 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. Montana Uniform Laws. Sorry, I dont know the insurance company nameI was sort of interested in the conversationbut I owned my 5th wheel outright. 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. In addition to advising clients and investing in his own real estate projects throughout the United States, Toby is a member of the Forbes Real Estate and Finance Council and has authored several books, including Tax-Wise Business Ownership (now in its fourth edition) and 12 Steps to Running a Successful Business. But this is not limited to fast cars and expensive motorhomes. Companies help facilitate it. However, with the recent rapid increase in average vehicle prices, with new car prices rocketing toward an average of $50,000, the demand for car registration in a state with no sales tax promise only to go up. MVD Headquarters, Driver Services Bureau, Vehicle Services Bureau (formerly Title & Registration Bureau), and Operations & Customer Support. You must have your bill of sale notarized. 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. The initial filing fees are around $70, and annual maintenance costs are around $20. https://www.reddit.com/r/vandwellers/wiki/index. There are, in fact, other states that do not require a sales tax. In 2017, Montana legislatorsproposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000;aimed at out-of-stateenthusiasts,House Bill 650was nicknamed the Ferrari tax.. Those days were the best. 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. This website may supply general information about the law but it is for informational purposes only. Organ-Donor and Brain-Injury Awareness When you register your vehicle, you may make a donation of $1 or more to organ-donor and traumatic brain-injury education and support programs. For cars under four years old, this can be as much as $217. However, Montana isn't currently Well, this might not just be your imagination. A strong reference would be the case of Thomas v. Bridges, 2013-C-1855 (Sup. Theres no longer a need to spend money on attorneys to create your legal papers. Its for the parents trying to get by who are tired of their hard-fought pay going up in smoke. 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. 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? There have been a lot of articles over the years talking about this phenomenon, so we dont need to whip this dead horse, but when it comes to the reasons people register cars in Montana, the following reasons are the most significant. A fee of $800 is assessed for motorhomes with retail values over $300,000. So how much can the affluent benefit from a Montana car registration? You must renew your registration by the end of the following month, which is indicated on the registration decal on the rear license plate. The exact name of your LLC has to be listed as the buyer. He teaches a popular bi-weekly webinar, Tax Tuesday, where business owners and investors can ask any tax question and get answers LIVE on-air. 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. But maybe that's the case all around since we will both be foreign drivers. 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. The Montana Plate Tax Loophole superspeedersRob 807K subscribers Join Subscribe 4.7K 214K views 5 years ago Its easy to get angry and rich people who look like they aren't paying 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. Some states are willing to use extreme measures to secure tax revenue on pricey vehicles that their residents purchase out of state. Guide: How to Avoid Capital Gains Tax on Real Esta How to Invest in Real Estate with No Money, Why 2023 is the Year you Create a Land Trust. 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. One other advantage to a Montana vehicle registration is that it will appeal to people buying used or who intend to hold onto their Montana-registered vehicles for a long time. 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. If the prime movers for Montana license plates on cars that dont live in Montana are exotic cars, then its got to be for the super-rich, right? The Montana Department of Transportations Motor Carrier Safety Program producedthis brochure for owners and operators of special mobile equipment to help the owner or driver understand how safety laws and regulations may apply when operating vehicles stickered as special mobiles on state roadways. Can you still write it off under Section 179? But car and RV dealers objectedstrongly. You will need to register your car with Montana Motor Vehicle Division (Vehicle Registration Bureau). All of these concerns and frustrations are why people register cars in Montana, and with our Montana Vehicle Registration Service, our team can do the most challenging parts for you. The bureau will let you know if a security interest is filed on the vehicle. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. The only downside is that you have to put an ugly Montana plate on your vehicle. It is also required if you plan to sell your vehicle in the future. You can find more information here. 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. Many see it as asmart move. We may earn a commission from links on this page. Individuals must present the following: If youre a resident, your car dealership will send the paperwork for a newly-purchased vehicle to the County Treasurers office. Please renew your license plates during the month shown on your license plates at the county treasurers office in the county you reside in. Montana Lien Entry Form | US Legal Forms Montana Lien Entry Form. (Californias sales tax, for instance, is 7.25%.) Technically, the practice is legal. By going this route instead of buying it as an out-of-state resident, they avoid hefty sales taxes. To do so, motorists must meet the states eligibility requirements and qualify to receive a registration. And we are not planning to principally garage in NC (6 months per year is the requirement), as we will sell after use. If it's anything like California all of those things can be handled automatically by a third party for a small fee. Send it to Carl at cwc@andersonadvisors.com. 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. 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? Open at MVD headquarters (302 N Roberts, Helena, MT, 59620) to handle titling issues and other special considerations. When the county treasurers office receives the secured partys request and the out-of-state title, the new Montana title can be sent to the out-of-state secured party. The people who have Montana license plates are like the people who put the fake handicap badges in their car, says Paul Zuckerman, an attorney in Los Angeles and avid car collector. You'll sign your name as the manager acting on behalf of your LLC. This is a phone call I get too often . Online Registration Renewal. Montana Liens. The broader answer to this question is no, registering a vehicle in Montana is not just for the super-rich. This page is for personal, non-commercial use. Why Is Everyone Registering Their Cars in Montana? Montana Limited Liability Companies. The Vehicle Services Bureau (VSB) regulates the titling and registration of motor vehicles. 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. Are state sales taxes and use taxes too high? There are businesses that handle everything for you including Montana residents do not have to pay the sales tax on their vehicles. 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. Montana offers two significant benefits. If law enforcement stops you, theyll demand to see it. Reserve the next gen Samsung deviceAll you need to do is sign up with your email and boom: credit for your preorder on a new Samsung device. So, my suggestion would be: Dont do it. Out-of-state Montana car registration has never been easier, and as the price of new and used cars continues to skyrocket, it makes sense for all consumers to consider it. Hire the top business lawyers and save up to 60% on legal fees. We aren't so concerned about those costs when you consider that renting an RV for this duration would be around 40k. A simple legal procedure is involved which, in most cases, helps clients save a great deal of money on taxes and licensing fees through creating a Montana LLC and then proceeding with Some state officials insist that vehicle registrants have an actual interest in real property in the state, but the requirements for showing this are extremely minimal. Are you sure about purchasing in Montana to avoid sales tax? The registration rate can vary depending on the age of the vehicle. $262.00. The owner of a light vehicle (passenger cars, pickup trucks one-ton and under, vans and sport utility vehicles) may choose one of the following renewal period options, 61-3-311, MCA: Note: Light vehicles cannot be permanently registered if they display a license plate that requires recertification or a yearly donation fee. New bumper-pull travel trailers are well into $50,000. Motor vehicle titling and registration. Those with permanently-registered vehicles do not have to take any registration action. The Montana vehicle registration process has been generating buzz for years; it is nothing new. Virginia is one of the most aggressive States chasing Montana plates because they have the dreaded yearly "car tax" which gives the owner the opportunity to pay for the car again over time in property taxes. And as we touched on before, Montanas lack of inspections and emissions testing are strong reasons. 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. Was this document helpful? If youve ever driven around town, and said, You know, thats a nice Ferrari. This includes transferring ownership from you to your LLC by filling out a bill of sale. For vehicles over 11 years old, the fee is only $28. This is because, with less than half the population of the borough of Queens, N.Y., it has no populated areasfederally classified as having non-attainment status tomeetthe Clean Air Act'sregulations. False statements which form the basis of the denial letter you will receive shortly in the mail. In recent years, Montana has made a name as a hub for exotic cars, although very few of them reside there. And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. Tagged: Montana, Montana Registration, Montana LLC, outofstateseries. 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 I use South Dakota through Americas Mailbox. However, if you want to be exempt from the sales tax, you must register your vehicle under your Montana LLC. Your biggest issue is going to get affordable auto insurance having not lived in the US for many years. A nominal fee of $800 looks appealing compared to shelling out twelve grand in tax, which is still very low. Tightening rules could send the practice into overdrive. Visit https://mt.vitu.com/vehicle to search the vehicle record, or contact the Vehicle Services Bureau with the Vehicle Identification Number and the registered owners name and address. All title, registration and license plate fees are required. Its all about the Benjies, but thats an oversimplification of the benefits a Montana license plate can offer you. 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