saving sales tax

[sid]

  IT  IS  MY  UNDERSTANDING  YOU  CAN  PURCHASE  A  RV  IN  ONE  STATE  AND  REGISTER,  IN  ANOTHER, THAT

  FOR  SOME REASON  OR  THE OTHER YOU DO NOT HAVE TO PAY  SALES  TAX......IF  SOMEONE  KNOWS  ANYTHING          ABOUT  THIS  OR  IS  IT  JUST  NOT  TRUE  LET  ME  KNOW........SID

 

[Tom]

Sid,

The state of purchase, state of registration and the sales tax issue are not related to hiding something. Use the Advanced search feature above to search for other topics where these issues have been discussed extensively.

 

[Ron]

It can and it has ben done but there have been several folks that did it and found out it was much more expensive to avoid taxes.  Even the MT LLC thing is being looked at very closely by many states as well as Montana.

 

[Gary RV_Wizard]

You may be able to do that and avoid sales taxes in your home state. Or maybe not. In some states you might be fined or  convicted for state tax fraud if you do that, or for doing it without careful attention to details. It's impossible to give a generic answer - it will depend on which state you reside in, which state you chose as the alternate and a host of other factors.

If you live in a state with very high sales or personal property taxes and you are buying a very expensive RV, it may be worthwhile to pursue this.

 

[2006F350]

In TN and a few other states, when you go to register a vehicle less than a year old and the purchase was out of state, the county tax assessor will collect sales tax unless you have documentation proving sales tax was paid where you purchased it. Both fivers we've bought, we bought from a dealer in MS. They collected sales tax and I had to sign a form for MS saying the sales tax did not belong to them, but to TN. Then when I went to register the fiver, I had to show the contract that detailed me paying TN sales tax. I was smart on the second one, the first one, I had to go back home to get the contract or pay an additional $2000+ in sales tax for a $14 license plate (ya, TN is greedy 9.25%).

There are sort-a-kind-a ways around it, but they are sort-a-kind-a illegal, and not worth it if your caught.

Larry

 

[Wendy]

No matter where you purchase a vehicle, the state where you live and where you register the vehicle can and will collect sales tax when you register the vehicle (unless you live in a state with no sales tax). The penalties for trying to avoid paying the sales tax can be extreme. If you want to buy an RV and not pay sales tax, you need to set up your domicile in a sales-tax-less state.

Wendy

 

[ArdraF]

The penalties for trying to avoid paying the sales tax can be extreme.

Think Al Capone and the words "tax evasion" and you'll get the idea.  Every state has different rules.  When we lived in California we LEGALLY avoided paying a substantial sales tax on a motorhome by taking out-of-state delivery and keeping it out of California for three months.  We documented that three months thoroughly in case we were audited.  That little loophole in the law has since been closed and it is no longer legal to do that in California.  Check your own state very carefully before buying so you know exactly what is legal and what is not.  Also, don't trust everything you're told by people who are trying to sell you on something.  They may be wrong, they may be more interested in their own business than your welfare, or they may just be naive.

ArdraF

 

[Shayne]

Type in Montana LLC and /advanced search and you will get some threads on the Montana LLCs  The following is just a sample of part of a thread. Everyone has to decide for themselves and talk with the company and know what your state will do  Yet today I run Montana tags.  It's worth reading some of these older threads




Joe  I used  New Horizon  in Montana  Her name is Mary.  When the state of ILL got involved it was going to cost me a bundle including my state pension and insurance for both me and my wife.  We tried to fight it and our attorneys  said pay  They got involved for us and actually wound up paying the entire bell for us and now they are fighting the State of ILL.  Best to get someone reliable cause it might wind up costing you a bundle.  JMHO

 

[Alaskansnowbirds]

When we lived in California we LEGALLY avoided paying a substantial sales tax on a motorhome by taking out-of-state delivery and keeping it out of California for three months.  We documented that three months thoroughly in case we were audited.  That little loophole in the law has since been closed and it is no longer legal to do that in California.

Ardra,

I think read or heard that the loophole is still there they just increased the time from three months to twelve months.

 

[Wendy]

I think read or heard that the loophole is still there they just increased the time from three months to twelve months.

You're right Don, it's now 12 months. We have friends who have kept their new Monaco in Reno for 4 months and will keep it there for another 8 months. They visit it periodically and pay for things in Nevada so they have receipts from out-of-state.

This is "tax avoidance" which is perfectly legal as opposed to "tax evasion" which is jail time.

Wendy

 

[KodiakRV]

You're right Don, it's now 12 months. We have friends who have kept their new Monaco in Reno for 4 months and will keep it there for another 8 months. They visit it periodically and pay for things in Nevada so they have receipts from out-of-state.
...

Hey!  I'll volunteer to keep it for them for 8 months! 

 

[ArdraF]

I think read or heard that the loophole is still there they just increased the time from three months to twelve months.

Don, you're absolutely right.  I momentarily took leave of my memory!  Hmmm.  Hope it doesn't happen too often.

ArdraF

 

[Ron]

Also, don't trust everything you're told by people who are trying to sell you on something.  They may be wrong, they may be more interested in their own business than your welfare, or they may just be naive.

ArdraF

That includes Lawyers.