Arizona and Montana LLC registration

[toshu]

I am a new Arizona resident and have a Trust and a number of LLCs for various reasons. Thinking of a motorhome purchase thru a MT based LLC.
Anyone in Arizona encounter and problems locally?
I would imagine with all the snow birds that Montana or other out of state plates wouldnt be a problem. I believe that California and some other states have specific laws that they use to go after you for MT registrations....

[TitanMike]

Can't speak for all states but in WA it's where the vehicle spends most of it's time that matters.

Our State Patrol has a whole division that chases down these out of state registered MH's, Cars, Trucks, Boats, and Aircraft, that are "based" here.

Had a friend that was on that detail just before he retired. He laughed and told me how many people doing this were turned in my neighbors.

Again, speaking for WA, if caught the penalty is not just a regular ticket with fine, it's a bill for any Sales Tax not paid as well as unpaid registration fees all the way back to the purchase date. OUCH.

[AlaskaErik]

If you're an Arizona resident, why would you want to register your vehicle in another state?

[pondo60]

I've read and talked to a few people about options to register. Its actually much lower than what I anticipated to register my Class C.

I've talked to a few people that registered their RV's out of state in Montana with LLC's and they have not had any problems.

I'm not sure of the logistics.

[toshu]

Originally Posted by AlaskaErik

If you're an Arizona resident, why would you want to register your vehicle in another state?

9% sales tax and annual registration based on MSRP

[TitanMike]

Originally Posted by toshu

9% sales tax and annual registration based on MSRP

Which you will end up paying anyway, perhaps with penalties and interest, if the State decides you are domiciling your vehicle in Arizona.

What state are you planning on getting your Driver's License from?

[AlaskaErik]

Originally Posted by toshu

9% sales tax and annual registration based on MSRP

I'm guessing Arizona, as well as other states, take a dim view of tax avoidance schemes like this. And that's all that that Montana LLC is. A tax and high registration fee avoidance scheme. The OP should consider the possibility of future contact with law enforcement and having to explain why his driver's license and the address on it don't match up with the registration of the motorhome. By now most LE is undoubtedly aware of the Montana LLC scam.

[TitanMike]

Originally Posted by AlaskaErik

I'm guessing Arizona, as well as other states, take a dim view of tax avoidance schemes like this. And that's all that that Montana LLC is. A tax and high registration fee avoidance scheme. The OP should consider the possibility of future contact with law enforcement and having to explain why his driver's license and the address on it don't match up with the registration of the motorhome. By now most LE is undoubtedly aware of the Montana LLC scam.

What happens in WA state when someone is stopped with an out of state registered vehicle and a WA DL, they ask if it's a rental car and want to see the contract.

If not the State Troopers merely take down the info and it gets passed on to their detail that chases down these scams. My friend told me how they follow the registration to the address shown on the out of state registration. They found lots of USPS PO boxes as well as private mail forwarding services. They then just "requested" (with legal documents) the real address of the box holder.

If one is lucky they just get caught in the first year. That way they only owe the Sales Tax, Registration Fee, and the fine for taking advantage of the State.

Get caught 5-6 years later and the ante goes way up. The Sales Tax, Registration for each year it hasn't been paid, and then the fine. (as well as interest on the unpaid Sales Tax and and registration fees.

With the current disruption in revenue for States I'm sure that more and more emphasis will be placed on chasing fraudulent out of state registration.

FWIW, an expensive RV is a HUGE target for enforcement. For a $100k unit I can see the State sending a demand letter for tens of thousands of dollars if a few years have passed before getting caught. OUCH!

Never mess with the tax man's share.

[lbrjet]

Never ceases to amaze me when people publicly announce their intention to commit fraud.