Montana LLC and sales tax

Hi All Again,

Thanks for all your advice so far but I said I might have a few more questions so here goes - hope someone can help.

I am seriously considering the Montana LLC route but

If I buy in say Texas can I take delivery there and then register in Montana having previously set up my LLC.

I have noted that some dealers say they have to make "out of state" delivery if local sales tax is not paid. Not sure if they were Texan dealers though.

Am I going to have any problems with this one?
[edit]Changed subject.[/edit]


Al :-\

Hi AL
I have always bought in Florida through my Montana LLC ,its straight forward.You give the dealer the address of your LLC they send the documents to the company dealing with your LLC were they register vehicle and post the plates to a given address by you.As for out of state delivery i have also heard that but never came across anyone who has had to do it,but ime sure someone on here will have the answer
IAN

If you buy an RV in a state other than the one you intend to register it in, the dealer will make delivery out of that state or he is obligated to collect any sales taxes due in the state of sale.  It's a common practice, and quite legal.

For info only:

There's an established and legal loophole provision in California tax law that allows you to avoid paying sales tax on an RV or boat bought in California, if delivery is taken in another state and the vehicle/vessel is kept out of California for more than 90 days of the first 6 months of ownership. Most dealers or sales people won't (can't?) mention it, but they have the mechanisms in place to make this work pretty well.

As examples, an RV bought in Northern California might be delivered (by a driver hired for the day) to Boomtown or Reno, Nevada where the new owner meets the driver, signs the paperwork and takes delivery. Vessels bought on the west coast might be delivered >3 miles offshore (in international waters) by a licensed captain and salesman. The owner takes delivery, brings the boat back to shore for electronics, hydraulics and other upgrades, then takes it either to Mexico or Seattle for 3 months.

The dealer has the owner sign a document and has it notarized at the time of delivery, and the owner sends it to the Board of Equalization. Most, but not all, folks get audited later to verify that the vehicle/vessel was actually used while it was out of state, not just kept in storage. The owner essentially needs to prove that the vehicle/vessel was purchased for use outside of California. Fuel and campground/marina receipts help provide the "documented proof". If you pass, the BOE sends you a letter confirming you've met the requirements and no sales tax is due.

The 90 day minimum was changed to 1 year on a temporary basis (for a duration of 2 years), and I believe it has now reverted to 90 days.

There's a marina in Ensenada, 65 miles south of San Diego, nicknamed "the 90 day marina"  ;D

Note that the above is independent of any LLC considerations, and doesn't provide any relief from registration fees or property taxes. I mention it only because the question of 'out of state delivery' was brought up.

Disclaimer: I'm not an accountant, tax expert, or any kind of lawyer. Seek professional advice if you intend to use the above provision.

Ned said:

If you buy an RV in a state other than the one you intend to register it in, the dealer will make delivery out of that state or he is obligated to collect any sales taxes due in the state of sale.  It's a common practice, and quite legal.

Click to expand...

The rules vary by state, in Oklahoma the dealers provided us with a "Drive Away" decal good for 14 days to return to our state of domicile to register it there. Same result as Ned described.