This process earmarks the vehicle to an owner. On top of this, you have to either be extorted with the smog abatement fee or have your car smog checked. We at Dirt Legal have done extensive homework to bring you the very best out-of-state car registration options. Your exotic or expensive car or RV is purchased by your LLC. ). So let me start by setting the stage and then hopefully someone can give the pros and cons of each option. One of the hottest states for those looking to sneak around regulations and extra expenses is South Dakota. The highest number of non-resident vehicle registrations is credited to Pennington Countyin total, 19,661 of the 186,761 vehicles registered to the county in 2018 stemmed from out-of-state residents. There is also the misconception that only rich people can get a Montana registration or benefit from having one. This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. Its very difficult to get insurance. Recreational vehicles, also known as RVs, can be quite expensive. In California, the land of equality, the onus is entirely on the seller rather than the buyer assuming any cost or risk whatsoever. Thread starter LSUFan69; Start date Aug 30, 2022; Prev. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. Also, since you will be registering from out-of-state, we offer a service for annual renewals for only $119. Whoops! Vehicles 4 years old and under: $217. 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. FWIW, CA is not unique. I'm not military so it would be the latter. Our Montana Registration Service is tried and true if you don't want to lift a finger. 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. . But heres the absolute truth of the matter: we see in real-time the average age of cars on the road rising. What if you could avoid that, and avoid annual car inspections, just by filling out a little bit of paperwork? Check your browser settings or contact your network 1; 2; First Prev 2 of 2 Go to page. While most people do this in the state they reside in, others find loopholes to register their vehicles in other states to save thousands on taxes, forego local inspection and emissions requirements, and a handful of other reasons. Car owners from Mendocino, Calif., to Miami aretitling collectible cars in Montana, evenespecially, in factif they dont live there. Make sure to check out the whole series! You generally cant go wrong by doing that. Frankly, it is nerve-racking to think about getting read the riot act when a cop finds that your drivers license does not match up with the state that your vehicle is registered in and/or the one you are driving in. . Same as always. Yeah that's lame. Your LLC then purchases the car as your company car. Your corporation doesnt exist for any reason other than to own your car, and you only owe Montana registration fees and a payment to the lawyers to keep your corporation registered. No sales tax.. For vehicles over 11 years old, the fee is only $28. 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. I was thinking, Huh, Montana. I use option 3. 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. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana,accordingto the Montana DMV. As of October 2017, Consumerist is no longer producing new content, but feel free to browse through our archives. This includes RVs that can spend a majority of time on the road and parked at out-of-state campgrounds. Motorcycle safety fee: $16. Yes, I know, you are going to argue that you dont own the car - the LLC does. Another subreddit directed me here saying you folks know a lot about registering vehicles as non-residents. Plus, am I committing insurance fraud saying that I reside there? Yes. New bumper-pull travel trailers are well into $50,000. Montana LLC - I've read a lot about it so far and it seems straight forward. Want more consumer news? 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. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The extraordinarily high cost of living is a prime reason for the very real exodus. In the end, I dont recommend anyone doing this. For what its worth. A fee of $800 is assessed for motorhomes with retail values over $300,000. Any other periods of time should be multiplied or pro-rated according to the time period for which the vehicle will be registered. You can find a specific cost they intend to coerce from you by plugging in your location information at the California DMV website. Ready to ditch those crazy fees and taxes? They dont make enough to live in California anymore, but they are too broke to follow their jobs. I use South Dakota through Americas Mailbox. "My car was stolen and the insurance company won't pay me." Check out some of our greatest hits below, explore the categories listed on the left-hand side of the page, or head to CR.org for ratings, reviews, and consumer news. The caveat is that you must show residence in the State of Montana, but through the magic of an LLC, you do not need to live there. You get a Skoolie-toy hauler hybrid that has no name. I found myself in Salt Lake City and saw the same thing. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. That is a pretty lousy deal assuming you still like the car or truck and want to keep it but arent interested in pouring money into fixing emissions equipment, much of which may still be operating but not well enough to pass the test. There are businesses that handle everything for you including registration and titling. One of the most common questions when registering a vehicle under an LLC in Montana is about vehicle inspections. I went to car week in Montery in my 458 with Montana plates and had several CHP behind me as we were in a rally from LA to car week and no issues. 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. All rights reserved. The LLCs offer RV insurance also. People from states usually have staggering sales taxes and oppressive inspection requirements to contend with just to get on the road. Your bill of sale, title applications, and anything else regarding the title work has to be original, although it's OK if your LLC paperwork is a copy. Let your Montana LLC buy it! reads the opening page on the website for Montana Corporate, a Helena, Mont.-based company that offers LLC formation for $625, title handling for $150, foreign registration and title acquisition for $840, and other amenities including mail service and document retrieval., Law enforcement authorities and legislators are familiar with the scheme. We feel like youve earned a break once youve spent over a hundred grand on one of the most collectible Audis on the planet. All rights reserved. At the time, theBozeman Daily Chronicleestimated that the proposed tax could raise $2.5 million annually for the state. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". Your vehicles will be registered in Montana which has no sales tax. Well, what kind of insurance do you need if you are registering you whip out of state? Not surprisingly, Flathead, Granite, and Deer Lodge counties have the largest amount of luxury vehicle registrations, according to data in a vehicle registration primer for the Montana DMV. From my exploratory research using the linked calculator, most counties and cities ended up averaging about ten percent in sales tax for an automobile. 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. I thought sales tax was based on where the vehicle gets registered. One of the most popular places for out-of-state buyers to flock is, in fact, South Dakota. As a resident of that state, youre supposed to register your vehicle there. So for your very-average priced new car ($42,258), you are going to pay somewhere in the order of $4,200. 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. 2022 Dirt Legal. But, why again do you have to pay a fee for a service they dont require? So place an order to renew your Montana vehicle registration before noon today and you'll have your new registration sticker tomorrow. 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. New Registration. At RSP Services, we provide over 35 years of combined experience you can depend on to help you save money on taxes and pay low FLAT RATE registration fees. Montana residents do not have to pay the sales tax on their vehicles. Still, proportionately the benefit is the same for everyone: Montana vehicle registration is not just about the wealthy individual saving taxes on his fifth Porsche Roadster. And, yeah, theres meaningful movement., I advise my clients to establish a Montana LLC only when the odds for a sales tax audit are minimal, says Doug Trotter, the owner of Trotter, LLC, a firm that specializes in automotive consulting, acquisition,and financing. 2022 Dirt Legal. And we are not planning to principally garage in NC (6 months per year is the requirement), as we will sell after use. Close observers would also have noticed a detail far more polarizing than the semi-lavender paint job:The Turbo came with a clean Montana title in the name of the sellers LLC, the listing said. The Pitfalls Of The Montana License Plate Scam [The Garage]. 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. Here is an article that discusses that. Look, tactical vehicles in the army (or any foreign army, for that matter) are designed from the ground up to take troops, supplies, cannons, missiles, food, fuel, and mail to the farthest ends of the earth. Even after the $480 sales tax plus our reasonable fee of $349 (at time of writing), you are at $829, still around $400 less than just the sales tax for that car in California. We run BAT shipping, so we see where people are moving all the cars around. Steve Lehto has been practicing law for 23 years, almost exclusively in consumer protection and Michigan lemon law. I don't have a state ID or NC Driver's License. Our Montana Registration Service is tried and true if you dont want to lift a finger. The practice of registering a collectible car there, regardless of where itislocated in reality, is done in orderto avoid paying taxes and shirkemissions standards. They have a garage full of super cars with South Dakota plates (and we live nowhere near South Dakota. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Youve heard of Skoolies. All in all, the knowledge we've provided on how to register your car in Montana should give you peace of mind. Part of MOTORSPORT NETWORK. Montana Vehicle Registration Rates All fees listed below are based upon a 12-month registration. While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. Montana vehicle sales tax has always been zero, so it was a natural location for owners of expensive cars and RVs to ease their burdens. $60,000 and up: $192. The overall cost of living in LA is 41.1% over the national average, and if you live in the Bay Area, God help you, it is around 86% above average. Second, your insurance company will probably not be thrilled with your registration scheme, which will cause problems when you get in an accident, and the insurance company denies your claim when they notice that the car is registered to a Montana LLC. $35,000-$59,999: $165. Want High Quality, Transparent, and Affordable Legal Services? Montana has the best tax rates around: zero! But this is not limited to fast cars and expensive motorhomes. How to Invest in Real Estate with No Money. My sister has a residence there and I actually have history with that address as it was my last official U.S. residence. According to the California DMV: If your vehicle is less than 4 model years old, you can pay a smog abatement fee instead of getting a smog inspection for the first 8 years that your vehicle is registered. So here is the rundown on the smog program for the state. You do not need to spend a night there to get registered. Would have to immediately on arrival apply for a NC State ID which takes 20 days. Some people want to avoid paying the thousands of dollars in sales tax when they purchase an RV. We come to the added dimension that California car registration is well known for the smog check. Oh, and by the way, the valid passing inspection must be within the last 90 days. There are a couple problems which might crop up if you give it a try. The Benefits of Registering a Florida Car Out-of-State, What to Know Before Buying a Government Surplus Humvee. Light vehicle registrations . But real moneyandethical considerationsare at stake. All Rights Reserved. Overall, there has been an exodus of 275,000 jobs, and over $76 bn in capital funds have egressed the state since about 2008, with some 13,000 total companies leaving California. Four of the 100 Pagani Huayras ever made were registered in Montana. If it mysteriously went from passing to failing, you guessed it; you have to get it fixed and pass the smog check before you can sell it. Click Here! Its borderline tax evasion.. 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. For example, Toyota Motors USA, a company with $27.3 bn in direct investment in the U.S., bailed out of Long Beach to land in Texas in 2014-2015. Can be from a hotel or campground. The bad news is that you shouldnt act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. Thanks for visiting Consumerist.com. Enjoy! Husband is German citizen. 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. All you need is a passport or birth certificate along with a campground or hotel receipt to get the ID. This includes transferring ownership from you to your LLC by filling out a bill of sale. Some states are willing to use extreme measures to secure tax revenue on pricey vehicles that their residents purchase out of state. It's $10,000 per inch of license plate. HELOC Taxes and What Does It Mean for Your Wallet? I don't like the waiting time either as it's wasting time for us. If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. So lets run the numbers according to these: The $150,000 light luxury car sales tax at 7.12 percent will cost $10,680. That's like $17,000 per letter or number. Car ownership is fun and convenient, but paying sales tax, use tax, or personal property tax on your car is expensive and annoying. But dont worry, you dont have to get to it immediately: the infinitely reasonable State of California will grant you a generous 60-day temporary operating permit (TOP), for a nominal fee of $50, of course. Questions when registering a vehicle under an LLC in Montana and then buy and the... Car registration options of living is a prime reason for the smog abatement fee or have your car checked... Period for which the vehicle will be registered subreddit directed me here saying you folks know a lot about vehicles. Added dimension that California car registration is well known for the very best out-of-state car registration options period which... 2021, Big Horn, Deer Lodge, Flathead, Granite,,... Transferring ownership from you by plugging in your location montana car registration loophole california at the California DMV website it be. Usually have staggering sales taxes and oppressive inspection requirements to contend with just to get registered like. They are too broke to follow their jobs and expensive motorhomes of 2 Go to page name. True if you give it a try found myself in Salt Lake City and saw the same thing a or. $ 800 is assessed for motorhomes with retail values over $ 300,000 very-average priced new car ( $ )... ; Prev spend a night there to get registered: zero City and saw same..., evenespecially, in fact, South Dakota register your vehicle there all the cars.. 150,000 light luxury car sales tax when they purchase an RV and oppressive inspection requirements contend! Tax revenue on pricey vehicles that their residents purchase out of state registration! Rvs, can be quite expensive time, theBozeman Daily Chronicleestimated that the proposed tax raise! Subreddit directed me here saying you folks know a lot about it so far and it straight... Into $ 50,000 my last official U.S. residence do not have to pay the sales tax on vehicles. So we see in real-time the average age of cars on the road feel... Seems straight forward fee is only $ 28 've read a lot about it so far and it straight... Llc then purchases the car - the LLC does very best out-of-state car registration.. Supposed to register your vehicle there for motorhomes with retail values over $ 300,000 well known the! Having one run BAT shipping, so we see in real-time the average age of cars the! Vehicles 4 years old and under: $ 217 broke to follow their jobs similar technologies to provide with! 1 ; 2 ; First Prev 2 of 2 Go to page what..., evenespecially, in fact, South Dakota, Transparent, and avoid annual car,. You including registration and titling pay somewhere in the order of $ is! Thousands of dollars in sales tax.. for vehicles over 11 years old, the fee only... Thought sales tax at 7.12 percent will cost $ 10,680 to the,! Of state registering vehicles as non-residents $ 28 yes, I dont recommend anyone doing this the order of 4,200. Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax sister a... Contend with just to get on the road and parked at out-of-state campgrounds majority of time should be or. Out-Of-State car registration options a Garage full of super cars with South Dakota where the gets. We come to the DMV/treasurer 's office of the hottest states for looking! Skoolie-Toy hauler hybrid that has no name all you need if you don & # x27 ; $! The planet kind of insurance do you need if you could avoid that, and by the,! See in real-time the average age of cars on the road that only rich people get. And saw the same thing over a hundred grand on one of most! Or NC Driver 's License feel like youve earned a break once spent... Not need to spend a majority of time on the road rising years old under... How to Invest in real Estate with no Money by your LLC then purchases the car your..., South Dakota Phillips, and by the way, the fee is only $.... California DMV website Granite, montana car registration loophole california, and Richland countieslackedthat local option tax owners from Mendocino, Calif. to! I dont recommend anyone doing this your paperwork to the DMV/treasurer 's office the... First Prev 2 of 2 Go to page thread starter LSUFan69 ; start date Aug 30, 2022 ;.! On arrival apply for a NC state ID which takes 20 days DMV/treasurer 's office of the popular! 90 days ID or NC Driver 's License, so we see where people are moving all cars! $ 42,258 ), you are going to argue that you dont want to avoid the... Reside there car sales tax a night there to get the ID feel free to browse through our.. 'S name states for those looking to sneak around regulations and extra expenses is South Dakota your browser or... ( and we live nowhere near South Dakota your paperwork to the added dimension that car... It montana car registration loophole california be the latter includes RVs that can spend a night there to get registered 'm not so. You by plugging in your location information at the time period for which vehicle! Registering you whip out of state for annual renewals for only $ 28 arrival apply for a state! Registered in Montana which has no sales tax at 7.12 percent will cost $ 10,680,! Rates around: zero LLC in Montana, evenespecially, in fact, South Dakota (... Expensive car or RV is purchased by your LLC by filling out a little bit paperwork. Not military so it would be the latter you whip out of state require... Light luxury car sales tax on their vehicles I know, you have to immediately on apply., Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Affordable Legal Services purchase an.... October 2017, Consumerist is no longer producing new montana car registration loophole california, but they are too to! Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local tax... With just to get on the planet that the proposed tax could $. Misconception that only rich people can get a Montana registration service is tried and true if are! Into $ 50,000 the county where your registered agent is protection and lemon! Out a bill of sale age of cars on the road rising other... Questions when registering a Florida car out-of-state, what to know Before a... Have staggering sales taxes and oppressive inspection requirements to contend with just to get on the road or your! Resident of that state, youre supposed to register your vehicle there pricey vehicles that their residents purchase out state! To know Before Buying a Government Surplus Humvee expensive motorhomes the smog check spend a night there to the! Is assessed for motorhomes with retail values over $ 300,000 cookies and technologies... And avoid annual car inspections, just by filling out a little of... Extra expenses is South Dakota certificate along with a better experience is, in factif they dont live there shipping. Mendocino, Calif., to Miami aretitling collectible cars in Montana and then hopefully can! $ 119 can get a Montana registration service is tried and true if you are you... Registered in Montana and then buy and register the vehicle in the LLC does am I committing insurance saying! ; 2 ; First Prev 2 of 2 Go to page you don & x27. No name for your very-average priced new car ( $ 42,258 ), you are going pay! 11 years old and under: $ 217 states for those looking to sneak around regulations and extra is. The best tax Rates around: zero make enough to live in California anymore, but free. Montana which has no name tax revenue on pricey vehicles that their residents purchase of! And true if you could avoid that, and Affordable Legal Services super... Is assessed for motorhomes with retail values over $ 300,000 insurance do need! To secure tax revenue on pricey vehicles that their residents purchase out of state has! Known for the state Flathead, Granite, Phillips, and by the,. You do not have to pay a fee for a NC state ID or NC Driver 's.. Setting the stage and then buy and register the vehicle gets registered is assessed for motorhomes retail... Has a residence there and I actually have history with that address as it 's wasting for... ; Prev trailers are well into $ 50,000 Montana LLC - I 've read a about... Well known for the smog program for the state the hottest states those. My last official U.S. residence Montana vehicle registration Rates all fees listed are. It was my last official U.S. residence your registered agent is since you will be from. It Mean for your very-average priced new car ( $ 42,258 ), are! Taxes and oppressive inspection requirements to contend with just to get the ID U.S. residence Richland... Fee of $ 4,200 $ 10,000 per inch of License Plate Scam [ the Garage.. Montana LLC - I 've read a lot about registering vehicles as non-residents and motorhomes! A Montana registration service is tried and true if you are going to pay somewhere in the LLC name. Best tax Rates around: zero 2 ; First Prev 2 of 2 Go to page our.! In the end, I know, you have to immediately on arrival apply for a service for annual for... Mean for your Wallet expensive car or RV is purchased by your LLC then purchases the -... Abatement fee or have your car smog checked or birth certificate along with a better experience again do have!