WILDEBILL308
Well-known member
Makes you understand why people are moving to Texas in droves.
If you are full time or going full time talk to Escapee's
Bill
If you are full time or going full time talk to Escapee's
Bill
Property tax on motorhomes
- Thread starter Joenew61
- Start date
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If you have answers, please help by responding to the unanswered posts.
Gary RV_Wizard
Site Team
There are two scenarios where a Montana LLC can save money:
1. Buying a new, mid-high end motorhome or truck/trailer. That can easily exceed $300k these days and some run to $500k or more. Even 6% sales tax on $300k is a lot of money for the first year. After that, the LLC may cost as much as it saves.
2. States that have a personal property tax or other value-based fee on vehicles. Until the value depreciates substantially (several years?), the cost of a Montana LLC is a pittance in comparison. You can get a vehicle purchase LLC set up for under $1000 at some legal services agencies, and second-year ongoing costs are even less.
1. Buying a new, mid-high end motorhome or truck/trailer. That can easily exceed $300k these days and some run to $500k or more. Even 6% sales tax on $300k is a lot of money for the first year. After that, the LLC may cost as much as it saves.
2. States that have a personal property tax or other value-based fee on vehicles. Until the value depreciates substantially (several years?), the cost of a Montana LLC is a pittance in comparison. You can get a vehicle purchase LLC set up for under $1000 at some legal services agencies, and second-year ongoing costs are even less.
DutchmenSport
Well-known member
Indiana did away with the personal property tax on RV's many years ago. The property tax was pretty expensive, but the annual license plate fee was dirt cheap.
Now, there is no property tax, but the annual registration for tags includes excise tax, wheel taxes (depending on your county) and some other imposed taxes also. When it all said and done, the annual license plate fees costs about as much (or more) as it did when everything was still subject to personal property tax.
In Indiana, if you purchase an automobile (that includes all types of RV or anything that requires a license plate to be road worthy), the dealership collects the sales tax. That is reflected in the paper work and there is no additional sales tax to be paid when registering the first time or any time after.
If you purchase from a non-commercial sale (private), then you have to declare what you paid for the vehicle or declare a monetary value if it was an even trade. That is now reflected on the paper work at the DMV and THEN you pay the sales tax (one time) on the vehicle.
If you are coming from another state and you have a title or even still have a loan, Indiana does not collect sales tax again as it's already been paid in the state where you originally registered the vehicle. You will pay for a new title, tags, excise tax, wheel tax (depending on the county), and any other taxes.... but you will not have to pay sales tax again.
Now, there is no property tax, but the annual registration for tags includes excise tax, wheel taxes (depending on your county) and some other imposed taxes also. When it all said and done, the annual license plate fees costs about as much (or more) as it did when everything was still subject to personal property tax.
In Indiana, if you purchase an automobile (that includes all types of RV or anything that requires a license plate to be road worthy), the dealership collects the sales tax. That is reflected in the paper work and there is no additional sales tax to be paid when registering the first time or any time after.
If you purchase from a non-commercial sale (private), then you have to declare what you paid for the vehicle or declare a monetary value if it was an even trade. That is now reflected on the paper work at the DMV and THEN you pay the sales tax (one time) on the vehicle.
If you are coming from another state and you have a title or even still have a loan, Indiana does not collect sales tax again as it's already been paid in the state where you originally registered the vehicle. You will pay for a new title, tags, excise tax, wheel tax (depending on the county), and any other taxes.... but you will not have to pay sales tax again.
DonTom
Well-known member
At least that is cheaper than the property tax on my Auburn home. I just now received that property tax bill, $5,735.20. Makes the RV property tax bill seem cheap.
-Don- Reno, NV
Lanceman73
Member
I get a write off as a second mortgage here in California. About the only thing that you can here. Lol
Ditto for us. We lived in S. FL for 15 years. Property tax in 1996 for our FL house was about $1000/month. Then add on homeowners insurance and flood insurance. Now you see why we are in Tennessee. We have a 2600 sq ft home plus my 1000 sq/ft shop located on 5 acres and pay about $1200 / year in property tax. I'm happy!
I don't advise messing with any system to avoid paying taxes. The result might be a big fine along with some free room and board at the Iron Bar hotel.
udidwht
Well-known member
Lest we forget why our ancestors came to the new world. Seems it is time that 'The people' wake up.
Gary RV_Wizard
Site Team
Phew! Must have been a nice place! The property tax on my older 3 BR house in pricey Boca Raton was "only" $1200/yr back in 1993 and when I moved to north central Florida my place there was under $400 (but that was just a retirement bungalow). But yeah, a lot of South Florida is expensive. The West Palm Beach condo I have now is about $2000/yr and many 3 or 4 BR homes are double that.
Waterfront property, Intercoastal Waterway.
mrschwarz
Well-known member
- Joined
- Jun 7, 2009
- Posts
- 875
Former CT resident here. While I didn't own an RV while I lived there, a previous posting in one of the forums mentioned that CT doesn't care where an RV is registered. If it sits on a site in CT without moving, it's getting a property tax bill.
Some states, like Colorado and Arizona charge property tax, even though it's part of the registration process. Other states, like CT, treat it the same as real estate.
Another interesting quirk is motorhome sales tax in Washington state. For cars, light trucks, and trailers, if you paid sales tax in another state, the vehicle is exempt from sales tax in Washington. If it's a motorhome and the sales tax paid in another state is less than the going rate in Washington, they expect you to pay the difference. How the motorhome is valued figures into how big the bill will be.
When we moved there, the registration folks looked at the transaction where we bought it, even though it was several years before the move. They wanted more than $2,000. A visit to the department of revenue allowed us to value it at the time we moved and reduced the bill to about $350.
Some states, like Colorado and Arizona charge property tax, even though it's part of the registration process. Other states, like CT, treat it the same as real estate.
Another interesting quirk is motorhome sales tax in Washington state. For cars, light trucks, and trailers, if you paid sales tax in another state, the vehicle is exempt from sales tax in Washington. If it's a motorhome and the sales tax paid in another state is less than the going rate in Washington, they expect you to pay the difference. How the motorhome is valued figures into how big the bill will be.
When we moved there, the registration folks looked at the transaction where we bought it, even though it was several years before the move. They wanted more than $2,000. A visit to the department of revenue allowed us to value it at the time we moved and reduced the bill to about $350.
JudyJB
Well-known member
Wow! I am glad I declared my son's home in Ohio as my residence when I went full-time ten years ago. I paid sales tax when I bought my rig, but license plates for it cost only $64 per year, and you can buy them up to 5 years in advance. (And that $64 is a $5 increase over last year's $59 per year!) No property tax at all on it.
Gary RV_Wizard
Site Team
That would do it!
dalghariMike
New member
With regards to property tax, I know that it can vary by state and even by county. Unfortunately, I am not from Connecticut, so I can't speak to the specifics of the tax laws there. However, if you call the tax assessor, they should be able to give you the most accurate information.
You mentioned the possibility of having the motorhome housed in NY when not in use, or having a joint title with your daughter who lives there. And speaking of paperwork, don't forget to keep track of all your expenses related to the motorhome purchase, including taxes and fees, for your records. You can use check stubs to keep track of payments and have a clear record of all transactions.
You mentioned the possibility of having the motorhome housed in NY when not in use, or having a joint title with your daughter who lives there. And speaking of paperwork, don't forget to keep track of all your expenses related to the motorhome purchase, including taxes and fees, for your records. You can use check stubs to keep track of payments and have a clear record of all transactions.
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Wheel tax is done by the City/County. Chattanooga/Hamilton County had a wheel tax but neighbouring Whitwell/Marion County did not.
Adventurous Traveler
Well-known member
For a high-dollar purchase like some Super Cs will fetch, it would be very much worth it for the buyer to look into a Montana LLC. Oh, I believe they are legal in all 50 states. Did you ever wonder why the banking industry uses Delaware as a home base? Using Montana LLCs would be no different.
Gary RV_Wizard
Site Team
The Montana LLC is completely legal everywhere, but does not necessarily relieve you or your LLC of property & vehicle taxes in all jurisdictions. Much depends on each state's laws and where & how you keep the vehicle.
Larry N.
Well-known member
As Gary says, though they're legal, you can still get in trouble using them since a typical use is to attempt to avoid sales/property tax. The state of Colorado, for one (there are many others), has long been wise to this and many folks have found legal trouble for tax avoidance.
So be very careful about what you use it for.
Gary RV_Wizard
Site Team
Connecticut, for example, says that if an RV sits on a site for 6 months or more, the vehicle owes property tax. They don't care who owns it - they assess the tax and the owner pays. Even if the owner is an out of state LLC. So the title and tags may be in a different state, but CT property tax still applies.
denis4x4
Member
"As Gary says, though they're legal, you can still get in trouble using them since a typical use is to attempt to avoid sales/property tax. The state of Colorado, for one (there are many others), has long been wise to this and many folks have found legal trouble for tax avoidance."
Trouble starts when you're stopped for a minor violation in Colorado with Montana plates and a Colorado driver's license!
Trouble starts when you're stopped for a minor violation in Colorado with Montana plates and a Colorado driver's license!
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Hypothetical …
So, my sister lives in Connecticut. She has major surgery followed by a long convalescence. I travel with my RV to be near her so I can check in on her daily. I secure an RV park site on a monthly rate.
If I'm there for 6 months I owe CT property tax???
That seems like a ridiculous overreach to me.
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