Registering Vehicle in SD

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Jomo

Well-known member
Joined
Jun 1, 2013
Posts
102
Location
Bay City MI & Mesa AZ
We have decided to start fulltiming in about a year or so after we sell everything including the house.  I plan to keep working in MI until the house sells but my husband is already retired.  We found a coach to buy now and would like to register it in SD even though we are currently residents of MI.  The sales tax, registration and insurance are all lower in SD.  I need to maintain MI residency but was wondering about getting the SD address now and registering it there and actually changing our DL license in about a year or so.  I know this is technically not the thing to do but was wondering how many people do it and what the chances of getting caught really are.  Since my husband is already retired, he could change his DL to SD now if we had to.
 
During a discussion with the owner of my local RV dealership last week, he said I could go online and register as a corporation in Maine for $380.  He said that way I pay no sales tax on my RV and that the license fee is only $30 a year.  I don't mean to hijack your thread, but I am curious if this is true.
 
Jomo;

I'm not an expert, but we just moved from NY to PA.  You cannot have two DL, what address will you give the DMV in SD? I am sure they will want a address.  Same with insurance. We sold our home in Oct 2014, and stilled used our NY address till we had a home in PA. July 2015.  DMV in PA would not issue a license with out a address and mail to that address.  It all falls down to homeland security. 

The states are always looking for ways to recoup lost money. Examples would be non payment of taxes.  A dealer will tell you anything to sell a RV, car, or boat.  Talk to a CPA and ask what happens when the IRS, or State comes and inquires about your tax shelter.

Tax shelter wonderful, peace of mind priceless.
 
Hi,
Pointwithinacircle said:
During a discussion with the owner of my local RV dealership last week, he said I could go online and register as a corporation in Maine for $380.  He said that way I pay no sales tax on my RV and that the license fee is only $30 a year.  I don't mean to hijack your thread, but I am curious if this is true.

A little googling seems to indicate it's not: http://www.maine.gov/revenue/salesuse/salestax/salestax.html

Relevant part:
Sales Tax. The sales tax rates in effect through December 31, 2015 are: 5.5% (general rate), 8% (lodging, meals and liquor), and 10% (short-term automobile rentals). The tax rate on lodging will increase from 8% to 9% on January 1, 2016.

Tin man said:
I'm not an expert, but [...] The states are always looking for ways to recoup lost money. Examples would be non payment of taxes.  A dealer will tell you anything to sell a RV, car, or boat.  Talk to a CPA and ask what happens when the IRS, or State comes and inquires about your tax shelter.

Tax shelter wonderful, peace of mind priceless.

I'm not an expert either, but what Tin Man says makes perfect sense to me.

Cheers,
--
  Vall.
 
Going back to the original question.. In order to register a vehicle in SD you must have your mailing address there and become a citizen of that state.This will include changing your driver's license to that state.  It cannot be a post office box #, it has to be a physical address. Our friends at the IRS requires this.
There are companies that will rent you a physical address where you can have your mail sent to and they will forward it to where ever you are.    The reason to move you address to SD if you full time is that there is no state income tax.  There are several, SD, Texas and Florida are the most popular.

As far as getting an LLC in a different state to avoid paying your state's sales tax.  i know several people who have done it.  7% or more on these rigs is a lot of money. The way it's done , as explained to me. a lawyer in Wy. sets up a LLC(Limited Liability Company) with you as sole member.  The RV is purchased by the LLC in WY.  where there is no or little tax to title it.  When you bring it back to your state you need to move the LLC's address to your state or have the title put into your name so you can license it. When you fill in the spot for the cost of the unit you write "NO CONSIDERATION".  Thus no sales tax is charged by your state.   

Would your state would come back after you later is the question. Having been in business and being constantly checked on people/companies/farmers who claim sales tax exemption, they do check and they do question the purchaser and the state will go to court to collect the tax. Check with an attorney in your state and see.

Tax avoidance is your civic duty...  Tax evasion is illegal...  big difference!


Wi1dWi11
 
You won't need an LLC if your husband can establish himself in SD, e.g. obtain a legal address, get driving license, etc. There are SD law firms that will help him get set up, and he can then buy the RV and title it there, paying SD fees and taxes.  If you want the coach in both your names, it would be easiest if also got an SD driving license, but I don't think it is required by SD. Using an LLC might be a way to get around that - the SD attorney could advise on that aspect. What they cannot advise about is your MI tax situation.

Your potential issue is bringing the coach back to MI. If it's in the state 30 days, they are going to want it registered there, and since you would still be a MI resident, they have you over a barrel for the taxes as well. Can you leave the coach outside the state, except for brief periods? That might be sufficient. You probably need to consult a MI attorney or CPA on this, since the situation is not clear cut.

You said you need to maintain MI residency, but I'm not sure if you are using "residency" in a legal sense or just saying you need to physically reside in MI for a while longer. There are subtle differences.
 
It took us 2 days to change our drivers license, motorhome, and  toad registration from PA to SD. We went to "MyHomeAddress.com" in Emery, SD.  They provided all the forms, correctly filled out and directed us to the proper state agency offices to file the paper work. They provide us with a physical mailing address in Emery, SD. We have now been Emery residents for three years and have only been there 2 days in the entire time.

The process of becoming a SD resident was painless, surprising inexpensive, and easy. However, your physical presence is required to do the job.

 
Just wondering, does the state of SD require your vehicle to be inspected?. If so you will have to visit the state for that. If not your golden.
 
Regarding registering in a state other than the state where your primary residense is:

Can you do it: Yes.. Done all the time.
Should you do it?  Well. now that is a very good quesiton..  Let me put it this way.

There is/was a song (Skip A Rope) one of the lines "Cheating on your taxes don';t it feel cool / What's that you said about the Golden Rule"

Well, it may feel cool to cheat the tax man... but if the Tax man figures out you cheated him.. Well. it is going to get very very hot.. As in warrants and fines and fees and so on often far exceeding what you saved.

So, bearing that in mine, and the fact that SOME states have already cracked down on this, and others have at the very least considered it... Make your decision. 

But yes, you can do it.. What I do not know is how legal it is.
 
Many full-time RVers join Escapees which is based in Livingston, Texas.  Once a member you can become a legal resident of Texas which includes a valid address for vehicle registration, insurance, voting, etc.  In other words, you establish "domicile" there.  This is a legal concept that can trip you up if you're not careful.

Just so you are aware, the various states frown upon having your vehicles registered in one state with a driver's license from another state.  Advancements in computer technology have made it much easier for the states to cross-check these things so people are getting caught and prosecuted for tax evasion among other things.  You can't have a domicile in one state (especially one that is essentially a post office box) and your spouse have another one in another state - unless of course you actually are physically living in two different states which happens sometimes.  The point is that you need to be very careful how you do this so research it well and do it right so you don't need to keep looking over your shoulder wondering if you'll be caught.

ArdraF
 
That's good that you don't need an inspection in SD. Was figuring on changing my address there once I get on the road, but also was wondering if when you need a renewal on your DL if it goes by your birth date. Probably does I think, but don't want to have to go back in January. Anybody know? Maybe Texas is better for me.
 
You can actually register a vehicle in SD without being there if you gave an address there, (including PMB) AND will be in SD to obtain a drivers license within either 3 or 6 months. I am sure your mail provider can help with this.
 
Something to think about, the oil boom is over (for now). The politicians are going to need to replace the lost income.  Things could be changing. 
 
Tin man said:
Something to think about, the oil boom is over (for now). The politicians are going to need to replace the lost income.  Things could be changing.

Wrong state.  North Dakota is the one with the Bakken oil fields.  We lived in SD for 9 years and long to go back but age is becoming a factor.  Great place, great people and politicians seem to work for 'the folks' in the smaller areas.  After paying 8.34 percent sales tax in Missouri (state, county, city), SD would be a nice place to register (and live for us).  I recall the motor vehicle sales tax to be 3 percent max, no state income tax but property tax is a bit higher than normal (whatever normal is).
 
I'm surprised by the amount of confusion and misinformation in this thread.  I thought people here understood the issues better.

You DON'T have to have a driver's license from a particular state or be domiciled in that state to register a vehicle there.  All you need is a legal address at which it is "garaged."  Just imagine you are a rich person who has homes in several states.  You would have no problem registering vehicles using the addresses of those properties.  The state you choose for your legal domicile is the one from which you will get a driver's license.

The key issue is not so much where you register the vehicle, but where you intend to keep it.  To return to the OP's situation.  If they had an address in SD and registered a vehicle there, but kept it at their property in MI it could lead to questions being asked as to why it carried SD rather than MI plates.  All states have laws regarding how many days of a year a vehicle with out of state registration can be kept in-state without needing to be reregistered.  Whether or not you get caught at it depends on how obvious your situation is.  If you have to park your RV out in the open and you have nosey neighbors, it's possible someone will rat you at.  If, OTOH, the RV is kept in a garage and is only taken out when you use it, the chances of getting caught are somewhat reduced.  However, if you were in a traffic stop, a cop might, legitimately, ask why you have MI licenses and an SD-registered RV.

Forming an LLC in MT is a way to register an RV and avoid tax since MT doesn't have any registration tax.  However, the above-noted considerations still apply.  If the OP were to form a MT LLC but were to keep the vehicle in MI the same questions could be asked.  MT LLC's work best for full-timers who essentially don't have a home state that they spend much time in.  We are SD residents and have an MH with MT registration.  We occasionally vacation in SD but the vehicle doesn't spend all that many days there so we don't violate SD law. 
 
docj said:
I'm surprised by the amount of confusion and misinformation in this thread.  I thought people here understood the issues better.

You DON'T have to have a driver's license from a particular state or be domiciled in that state to register a vehicle there.  All you need is a legal address at which it is "garaged."  Just imagine you are a rich person who has homes in several states.  You would have no problem registering vehicles using the addresses of those properties.  The state you choose for your legal domicile is the one from which you will get a driver's license.

The key issue is not so much where you register the vehicle, but where you intend to keep it.  To return to the OP's situation.  If they had an address in SD and registered a vehicle there, but kept it at their property in MI it could lead to questions being asked as to why it carried SD rather than MI plates.  All states have laws regarding how many days of a year a vehicle with out of state registration can be kept in-state without needing to be reregistered.  Whether or not you get caught at it depends on how obvious your situation is.  If you have to park your RV out in the open and you have nosey neighbors, it's possible someone will rat you at.  If, OTOH, the RV is kept in a garage and is only taken out when you use it, the chances of getting caught are somewhat reduced.  However, if you were in a traffic stop, a cop might, legitimately, ask why you have MI licenses and an SD-registered RV.

Forming an LLC in MT is a way to register an RV and avoid tax since MT doesn't have any registration tax.  However, the above-noted considerations still apply.  If the OP were to form a MT LLC but were to keep the vehicle in MI the same questions could be asked.  MT LLC's work best for full-timers who essentially don't have a home state that they spend much time in.  We are SD residents and have an MH with MT registration.  We occasionally vacation in SD but the vehicle doesn't spend all that many days there so we don't violate SD law.


Joel


Except for corporations registered to do business in the state IL, WA, and SD require you to have a valid driver's license to register a vehicle in those states, or did while we resided in each.  MT requires the same, in this case the LLC is registered in MT.


State requirements regarding use of vehicles in their respective states make it pretty clear what the laws are.
 

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