RV Loan Restrictions for Fulltimers
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Lou Schneider
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The problem is this creates two classes of RV loans. Fulltime use is now handled differently than part time use. If you are NOT a fulltimer, nothing changes. The banks only have to escrow the first year's insurance and property taxes on RVs if they are being used as a primary residence, i.e. fulltime. If the RV is only used part-time, it's not the primary residence and nothing changes from current practices.
My guess is there isn't enough volume to justify changing the procedures to accommodate the relatively few numbers of loans taken out by fulltimers, so loans to fulltimers will disappear unless someone else steps into the market.
My guess is there isn't enough volume to justify changing the procedures to accommodate the relatively few numbers of loans taken out by fulltimers, so loans to fulltimers will disappear unless someone else steps into the market.
An option full-timers have is to use a relative or friend's address as their permanent address. Hopefully, they have a friend or relative who lives in an RV-friendly state. Using South Dakota or Livingston addresses is probably a give-away that you're a full-timer.
I would also argue that if you stay in one place repeatedly for 6 months, as many full-timers do, then you have a permanent residence.
I would also argue that if you stay in one place repeatedly for 6 months, as many full-timers do, then you have a permanent residence.
Lou Schneider
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Staying in one place doesn't negate the RV being used as the principle residence, Wendy. The requirement to escrow the insurance and property taxes remain - the only advantage is there will be less ambiguity about the amount to be escrowed and where it should be sent.
You'll still have two classes of RV loans - fulltime with the escrow requirement, part-time without.
You'll still have two classes of RV loans - fulltime with the escrow requirement, part-time without.
tswms
Well-known member
One problem I cam see is that the state laws that applie at the time the loan is originated may not be the same as the time of default of the loan. A MH bought in FL may be in WA when the buyer defaults, and may pose much different problems when the lender is forced to repossess. It is one of the same problems Insurance have faced for years.
Most of us know of RVs repo'd for less than 1/2 the loan value in the pas few years. I know of several loan apps for RVs that had ridiculous terms offered because the banks really didn't want the paper. A lot of the drop in RV values was caused when banks dropped the hammer on dealers and forced sales in a down market without providing the dealer with a floor plan to handle trades.
Jumping on any loan they think could cause a problem probably got full timing in their sights. The dealers will have to negotiate for a source for their customers if they want to tap the relatively high end full timing market.
Jumping on any loan they think could cause a problem probably got full timing in their sights. The dealers will have to negotiate for a source for their customers if they want to tap the relatively high end full timing market.
ceemike
Well-known member
I've never heard of property taxes on an RV whether or not it's for full time use. Are there states that treat RVs as real estate?
tswms
Well-known member
In Arkansas all vehicles are subject to personal property tax including motorhomes.
To gert a license you must show proof of insurance and tax paid.
To gert a license you must show proof of insurance and tax paid.
Phil
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ceemike said:
Property tax on RV's in Utah.
scottydl
Site Team
^^ Same with Missouri. It's a trend I'm betting all states will try to adopt eventually.
Gary RV_Wizard
Site Team
North & South Carolina too. And California. It's usually a personal property tax rather than real estate and sometimes its just considered a motor vehicle registration fee, but its based on the value so the IRS still considers it a tax.
BernieD
Well-known member
In AZ, it technically is a personal property tax and is deductible as such on your income tax return. It is part of the license fee and you don't get a renewal sticker unless you pay it. Illinois had a personal property tax in place when we moved from it in 1973, but it wasn't enforced back then.
Colorado also has a personal property tax that they call an "own tax" based on the vehicle's value. I suspect a lot of states "sneak" personal property taxes and a lot of other taxes onto vehicle registrations where we either don't notice or can't do anything about them.
Wendy
Wendy
Lou Schneider
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Any state that graduates their annual renewal based on the vehicle's value is taxing the RV as property, whether it's specifically called a property tax or not.
SargeW
Site Team
In these days of shrinking state budgets............... you betcha..........
afchap
Well-known member
VA calls it "property tax" and you have to pay it to the county before you go to DMV to get your vehicle registration. AL (and some other Southern states) call it "ad valorem" tax and you pay it at the same time you pay your vehicle registration. Taxes on a stick house in Alabama are ridiculously low, but they really stick it to you on an RV ...one of several reasons we re-established TX residency when I retired from the military.
P
PatrioticStabilist
Guest
I paid over $3000 in sales tax on my used 2005 motorhome, I didn't think that was to cheap in Texas. We pay each time we renew the tags, don't remember how much that was off the top of my head.
afchap
Well-known member
Sales tax is not the same thing as annual property/ad valorem tax. Texas does have sales tax on vehicles (6.25% plus county/local tax), as most states do. But we do NOT have to pay thousands of $$$$ in taxes each year to renew our TX registration. We lived in VA (stationed there in the mititary) when we bought out motorhome, and we registered it in VA and paid the sales tax there ...3% as I recall. As a non-resident active duty military I was exempt from the local county property tax. In York County VA the annual tax rate was 4% of "assessed value". I was a resident of AL at that point. Before retiring we looked at our options. If we remained residents of Alabama we calculated we would be paying apx 10 times the annual taxes on our motorhome than we would on a stick house of the same value. Since we were married in TX and plan to settle there eventually, we re-newed TX residency for retirement purposes. The annual registration cost in TX on my 2003 40' DP is a little over $200 at this point, vs 3% of assessed value + registration costs in the county in Alabama where we were once residents.
Kim (skyking4ar2) Bertram
Moderator Emeritus
Here's a scary one that us pilots have had to endure:
Effective July 1, 2010, a nonresident of Florida will be exempt from use tax on his/her aircraft if the aircraft enters and remains in the state for no more than a total of 20 days during the 6-month period after the date of purchase.
That was NOT the case prior! Net effect was, take your new plane into the state for a long vacation, and have a nice tax bill! And they were not the only state with goofy laws trying to cash in on the bizjets and high dollar corp rides....
Talk about a nightmare....
Big ticket items are big ticket (pick a name) tax targets.....to another poster's point, we do have to stay vigilant as a group....
Effective July 1, 2010, a nonresident of Florida will be exempt from use tax on his/her aircraft if the aircraft enters and remains in the state for no more than a total of 20 days during the 6-month period after the date of purchase.
That was NOT the case prior! Net effect was, take your new plane into the state for a long vacation, and have a nice tax bill! And they were not the only state with goofy laws trying to cash in on the bizjets and high dollar corp rides....
Talk about a nightmare....
Big ticket items are big ticket (pick a name) tax targets.....to another poster's point, we do have to stay vigilant as a group....
