It might even be a good idea. Once the vehicle is permanently registered, it is covered for life, with no more registration renewals. This does not include the California car registration fees, nor does it include the smog check. I have no problem utilizing said loophole. No, You Shouldnt Incorporate And Register Your Car Tax-Free InMontana, Chicago Will Have The Highest Sales Tax In The U.S. At 10.25%, States Hungry For Online Sales Tax Looking At Challenge To South Dakota Law, 5 Ways To Improve Your Finances With Minimal Effort, Beverage Industry Takes Philadelphia To Court Over Soda Tax, Oregon Testing Pay-Per-Mile System As An Alternative To States Gas Tax, College-Bound Students Can Fill Out Their FAFSA Forms 3 Months Earlier Starting NextYear, Michigan lemon law attorney Steve Lehto explains, The Pitfalls Of The Montana License Plate Scam. Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. Weve got plenty of those. Check out our Montana Vehicle Registration Service to see how our team can do the hard work for you, or read the articles below to learn more about the process. After doing a bit of research, he found a loophole that permitted him to register his vehicle in Clay County while living in Mexico. This part of the smog check process is somewhat painless. Yeah that's lame. Because once you cross over that sunset, you are going to have to deal with the probability that your emissions gear will need work anyway. Either way, it's a method people have used to register tens of thousands of vehicles, and that's no small feat. You'll simply need to produce the certificate of origin from the manufacturer. In recent years, Montana has made a name as a hub for exotic cars, although very few of them reside there. FWIW, CA is not unique. It really is that simple. Where 10 years agothe sight of a Ford GT sporting a blue Montana plate would be rare, adriveto the popular Friday morning car gatherings at Newcombs Ranch outsideLA reveals that even relativelypedestrian 911s carryMontana plates. The Montana lawyers who form these LLCsat a cost of around $1,000--admit as much in the small print on their websites. You do not need to spend a night there to get registered. So, even if you just conducted your biennial smog check five months ago, it is invalid. In order to register your motorized scooter, you need to complete a title application and prepare yourself for the payment of the following fees: Permanent registration fee: Street-legal fee: $53.25. Then there are the tax issues. New comments cannot be posted and votes cannot be cast, Tips and tricks for living in your van, car or truck. So let's do a little quick math: a 2014-model used car with an original sticker price of $40,000 is now going to be worth somewhere in the ballpark of $12,000. For example, you reside in New York City, which has an 8.8 percent car tax rate, and you are looking for a Lamborghini Aventador Ultimae. You will have to provide a passing smog check in selling your car. The DMV's mail-in process for vehicle registration has attracted thousands of automobile owners to register their wheels in the state. The fees that you will have to pay are as follows: Vehicles that are only four years old and under will cost $217 to register. The Pitfalls Of The Montana License Plate Scam [The Garage]. One other advantage to a Montana vehicle registration is that it will appeal to people buying used or who intend to hold onto their Montana-registered vehicles for a long time. The overall cost of living in LA is 41.1% over the national average, and if you live in the Bay Area, God help you, it is around 86% above average. The fee goes down in increments depending on how old the vehicle is. And if your tax rate is around ten percent, that tax bill will punch through $38,000. The current rates for registration in Montana are: Vehicles less than four model years: $217. they can rightfully deny a claim in most states if it is shown that the underlying policy was obtained through fraud, even if the underlying fraud has nothing to do with your claim. So lets make a quick comparison on the registration of our generic brand new cars with a completely average sale price of $42,258. When you sign the bill, complete the buyer section the same as you would a Montana title application. 3 min read 1. Any other periods of time should be multiplied or pro-rated according to the time period for which the vehicle will be registered. If it is a Mexican plate, they will need the driver's physical address. You own the LLC outright. And, I have insurance through USAA (parents both Military). If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. The TakeawayIf you have any questions about the best tax decisions for YOUR unique situation, I encourage you to take advantage of a complimentary Strategy Session as a blog reader now. Thats correct; no nagging smog checks. Dirt Legal can help you save time, money, and headaches. Californias economy would rank as the fifth-largest country globally, ahead of India! The first step you must take after buying a new-to-you car in the United States is registering it with your local department of motor vehicles. The same $42,258 sale price will calculate at four percent to $1,690.32 in sales tax, an immediate savings of $2,324.68, equating to nearly 58% less in debt from taxes. Share it with your network! Food for thought. All rights reserved. Send it to Carl at cwc@andersonadvisors.com. I am not the fun police so I will tell you that in many states, you can probably do the foregoing and skate for quite a while without getting caught. Toby teaches extensively throughout the US to groups of investors and professionals, with many of his courses certified for continuing education credit for legal, accounting, and real estate professionals. Oh, and by the way, the valid passing inspection must be within the last 90 days. Dirt Legal is here to give you options for registering your car or truck out of state to save you a bundle of cash and get you out of smog checks. According to AARP, the national average state and local sales tax comes in at 7.12 percent. Maybe somebody in the position to buy a Lambo in the first place is better poised to shell out almost fifty grand for tax, but that doesnt mean that dropping that kind of cash wont sting just a little even if you are. You can see these figures and determine that they are, in fact, insane. Submit your completed vehicle registration packet. ), Email: info@andersonadvisors.com Here you can find 12 years worth of articles on everything from how to avoid dodgy scams to writing an effective complaint letter. Our solution is an LLC. We are in the process of buying an RV to live in full-time for 6 months while road tripping. Technology, performance and design delivered to your inbox. Inspections got you down? Its not a red flag; its something to note, he says. But real moneyandethical considerationsare at stake. I decided to pass on his offer. The fine people of Montana drive and register all kinds of vehicles, all of which are sales tax-free to register. HELOC Taxes and What Does It Mean for Your Wallet? Make, model, and color of the vehicle. The LLCs offer RV insurance also. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. You generally cant go wrong by doing that. Especially if you are using a Montana LLC? If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. Both my husband and I have a German and International Driver's license. I was thinking, Huh, Montana. Maybe to Montana? So, my suggestion would be: Dont do it. Anyone from any state can register their car in Montana, although it is not quite as simple as some of our other out-of-state registration programs. Search for how to register my car in Montana and youll see a dozen sites offering services to help clients form LLCs. Speak with an Anderson Professional Advisor to get your FREE Tax Plan Strategy Session. Dont poke the bear! On the other hand, if you live in the land of ten percent tax rates, that will be fifty grand in taxes! Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues. I read an article recently that Massachusetts conducted police patrols in RV parks flagging folks with Montana plates. It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. The big question is this: is the Montana registration process limited to just cars? A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. One of the most popular places for out-of-state buyers to flock is, in fact, South Dakota. Pay (All) Fees. Also, this is only a flat fixed rate for the state and does not include whatever fees the county and local municipality will pile up on you. He resides on a small farm in Eastern Kansas where he (sometimes) enjoys fixing ancient farm equipment. For example, Toyota Motors USA, a company with $27.3 bn in direct investment in the U.S., bailed out of Long Beach to land in Texas in 2014-2015. Despite the initial investigation taking place in 2018, the practice is very much so alive and well today. Light vehicle registrations . Thats right; no more Googling smog check near me when it is time to update your sticker; we will get you on the road with no fuss. Individuals must bring their title and proof of vehicle sale to the county treasurer's office for Montana car registration regardless of the desired registration period. It is not so much that the biennial smog check is pricey; it is more of a nuisance than a significant expense. Please follow the instructions below to enable JavaScript in your browser. I don't get it, want to live in CA, then obey the laws of CA. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. How about the blue-collar guy who has grown his business over the years, has a fleet of work trucks, and is buying more? Are those even registered at all? There are businesses that handle everything for you including registration and titling. Make sure to check out the whole series! The longer you delay payment, the greater the penalty amount will be. Still, the effect is the same across the board. So, I'd appreciate advice on which makes the most sense for us from a legal standpoint. This saves them A LOT of money on the initial purchase of a vehicle, be it a car, a motorbike, a boat, or even an RV. You might be passing for the first year or two, and it still might be a reasonably expensive used vehicle, and you end up flunking the smog check while you are still making payments, and you had a big tax bill laid on you when you bought it. There is no getting around this, and with the average age of a car on the road cruising for the past twelve years, you will for sure fail and have to have repairs done at some point. I have no sympathy for the State of California, as in the state government itself, but a significant amount to the blue-collar workers who have been left in the lurch for decades. Montana Vehicle Registration Rates All fees listed below are based upon a 12-month registration. Yes! I found myself in Salt Lake City and saw the same thing. Montana offers two significant benefits. Whether you want your LLC expedited and filed in 1 hour or if you are ok with our normal process and turnaround of 24 hours we will make sure to get them filed based on your individual need. 2022 Dirt Legal. Sfo is still safe and easy to navigate via car or on foot. Check your browser settings or contact your network On top of this, you have to either be extorted with the smog abatement fee or have your car smog checked. All rights reserved. Penalties for Vehicles Registered in California Dirt Legals Montana Vehicle Registration Service is just right for you if you are looking for a new car, truck, motorhome, or even a used one. Your LLC then purchases the car as your company car. Your corporation doesnt exist for any reason other than to own your car, and you only owe Montana registration fees and a payment to the lawyers to keep your corporation registered. Im not entirely sure if you need a SD address or not to get registered. But much has changed over the past few decades. Thats a whole truck! We aren't so concerned about those costs when you consider that renting an RV for this duration would be around 40k. Montana LLC - I've read a lot about it so far and it seems straight forward. Check your in-box to get started. You must be logged in to perform that action. Montana Department of Justice The Department of Justice handles driver licenses and in-state vehicle registration. MDT does handle interstate licensing and registration. We come to the added dimension that California car registration is well known for the smog check. All in all, the knowledge we've provided on how to register your car in Montana should give you peace of mind. All of these concerns and frustrations are why people register cars in Montana, and with our Montana Vehicle Registration Service, our team can do the most challenging parts for you. Tagged: Montana, Montana Registration, Montana LLC, outofstateseries. All told, light vehicle registrations contributeroughly 4% of total revenue collections for the state, according to the primer. Along those lines, your first thought might be rich people taking advantage of Montanas complete lack of sales tax. California has some things going for it, but affordability is not one of them. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The people who have Montana license plates are like the people who put the fake handicap badges in their car, says Paul Zuckerman, an attorney in Los Angeles and avid car collector. This isnt even counting localized taxes and fees, which as we saw earlier can be substantial in California. You must have your bill of sale notarized. If you are interested in seeing all of the ways that you are getting fleeced in this one-sided transaction, feel free to read through the complete breakdown of the DMV calculator. We at Dirt Legal have done extensive homework to bring you the very best out-of-state car registration options. Our Mr. Average lives in Long Beach. your insurance will be in Montana, don't if they found out you always in California, will they still pay you . All you need is a passport or birth certificate along with a campground or hotel receipt to get the ID. The extraordinarily high cost of living is a prime reason for the very real exodus. The following cars are exempt from smog testing in California: Vehicles 8 years old or newer when paying a Smog Abatement Fee, Natural gas vehicles weighing over 14,000 lbs. All Rights Reserved. (Progressive already said they'd insure both of us as foreign drivers in N.C.). Also, since you will be registering from out-of-state, we offer a service for annual renewals for only $119. First, Montana has long been known for its lax approach to driving laws, most memorably the brief period where the interstate had no speed limit. Now is the big one: no emissions inspections or annual state inspections at all. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. I always feel better having my cars registered in California., Fisker will begin delivering its EV flagship SUV this year see the $37,500 Ocean, Tesla Cybertruck's adjustable suspension is like a Skyjack, Toyota rethinks long-term EV strategy, calls Tesla Y a 'work of art,' report says, Nissan recalling more than 700,000 Rogue and Rogue Sport models, Genesis recalls over 65,000 cars for potential exploding seat belt pretensioners, Stellantis idles Belvidere plant as last Jeep Cherokee rolls off the line. One of the hottest states for those looking to sneak around regulations and extra expenses is South Dakota. Now lets have a look at South Dakota. You neednt even set foot in the state. So think about this: if you live in a state with sales tax in the ballpark of six percent and purchase a brand new Jayco Embark (MSRP $384,150), your tax burden will be around $23,050. https://www.reddit.com/r/vandwellers/wiki/index, Press J to jump to the feed. Well, that will come out to $35,925 in sales tax. Can anyone legally register their car in Montana? While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. . Im sure lots of people had the same questions that many of the TV viewers did: Why would somebody register a vehicle in Montana but not reside there? Somewhat painless do a quick comparison on the registration of our generic brand new cars a... Best out-of-state car registration options small print on their websites fifth-largest country globally, ahead of India for! 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