New Registration. Then there are the tax issues. The current rates for registration in Montana are: Vehicles less than four model years: $217. 9.14.15 4:48 PM EDT By Laura Northrup@lnorthrup, big lie country montana car registration sales tax use tax personal property tax. People from states usually have staggering sales taxes and oppressive inspection requirements to contend with just to get on the road. Thats less time invested, less money spent, and more breathing room on your next check. Many collectable cars are denoted as gross polluters in the state of California and do not pass emissions tests. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Once it fails, you have to fix it to pass emissions testing, which is not cheap. It is not so much that the biennial smog check is pricey; it is more of a nuisance than a significant expense. Its like the Cayman Islands for car registrations. Second, Montana does not require vehicle emissions tests or annual inspections. 2 mtchalcedony 1 yr. ago For whatever reason, the Mount Rushmore State, like Montana and others, has become a bit of a safe haven for those looking to skirt their home states' regulations. Its comical., Randy Nonnenberg, the founder of BAT, is more circumspect, although hes quick to say he has nopersonal vehicles bearingMontana plates. So lets run the numbers according to these: The $150,000 light luxury car sales tax at 7.12 percent will cost $10,680. He resides on a small farm in Eastern Kansas where he (sometimes) enjoys fixing ancient farm equipment. But regardless of which part of the state you may reside in, there is another option to save money on registration and kick the smog check to the curb. You do not need to spend a night there to get registered. My sister has a residence there and I actually have history with that address as it was my last official U.S. residence. Also, since you will be registering from out-of-state, we offer a service for annual renewals for only $119. Local taxes and fees now total $4453. Montana Department of Justice The Department of Justice handles driver licenses and in-state vehicle registration. Others acquirea mailbox address or property at whichthey can claim Montana residency. . Close observers would also have noticed a detail far more polarizing than the semi-lavender paint job:The Turbo came with a clean Montana title in the name of the sellers LLC, the listing said. But dont worry, you are not alone: about ten percent of cars fail. Well, this might not just be your imagination. Plenty of states do this. All rights reserved. In a recent article, I quoted a new fifth-wheel trailer at around $109,000 MSRP.. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. national average state and local sales tax, Top 5 Electric Motorcycles & Scooters of Barcelona 2019, Buying a UTV Lift Kit: Everything You Should Know, REGISTER YOUR CAR IN MONTANA - THE EASY WAY, Want to own Doug DeMuro's Audi RS2 but live in California? Of course not! Oh, thats interesting, I thought. I found myself in Salt Lake City and saw the same thing. DM me if you have questions. I can't figure out if that is needed before the registration can happen or if it's when you want to get your SD driver's license eventually. Well, what kind of insurance do you need if you are registering you whip out of state? Walk into a DMV in California to register your new $1.5-million McLaren P1, and you'll pay something like $120,000 for a license plate. For vehicles over 11 years old, the fee is only $28. No sales tax.. The only question left is, what will you do? If you wanna live in California you should abide by the law. While this ushered in unimaginable wealth, it also changed the fabric of the state. If it's anything like California all of those things can be handled automatically by a third party for a small fee. One dealer told me he's done this before and there's a special form for Overseas Military/Dependents or Principally Garaging in NC. Your exotic or expensive car or RV is purchased by your LLC. 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. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, https://www.chp.ca.gov/notify-chp/cheaters-out-of-state-(out-of-state-registration-violators), (You must log in or sign up to post here. Typically, they register in a Montana county that doesn't have a local-option tax. I went to car week in Montery in my 458 with Montana plates and had several CHP behind me as we were in a rally from LA to car week and no issues. You would then buy the vehicle in the name of that LLC. The Montana lawyers who form these LLCsat a cost of around $1,000--admit as much in the small print on their websites. Call it what you want, if it's registered legit and you have residence or a business in that state your good. Lehto points out in a blog post for Jalopnik that there are two problems with this: first, you can probably get away with the scheme for a while, but do you really want to risk tax penalties over this? I'm not military so it would be the latter. 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. In the end, I dont recommend anyone doing this. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? And you are merely driving your company car. Even though the company is a sham set up for the sole purpose of evading taxes. https://www.reddit.com/r/vandwellers/wiki/index, Press J to jump to the feed. RV Service: Registering a Converted School Bus Toy Hauler, Want to own Doug DeMuro's Audi RS2 but live in California? Vehicles 4 years old and under: $217. For example, the Montana LLC program we offer is an LLC from Montana providing the required residency for registration there. 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. You may order presentation ready copies to distribute to your colleagues, customers, or clients, by visiting https://www.parsintl.com/publication/autoblog/. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is were not billing you by the hour for reading this. But it does not end there. The cool thing about making a military Light Medium Tactical Vehicle (LMTV) off-grid is that it will take you farther than you might even want to go. The Montana Scheme According to Montana's Department of Motor Vehicles, you need no state driver's license to title and register your vehicle in Montana, but you must prove residency in. Want High Quality, Transparent, and Affordable Legal Services? You can see these figures and determine that they are, in fact, insane. No smog checks before selling your vehicle. Would have to immediately on arrival apply for a NC State ID which takes 20 days. 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. (Ritholtz also hosts the Masters in Businessshow on Bloomberg Radio. Most states would like that information. This does not include the California car registration fees, nor does it include the smog check. Taxes or fees in lieu of taxes are due, along with appropriate registration fees (U.S. funds only). This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. $60,000 and up: $192. 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 $12,000. Check your in-box to get started. Thats not the point. We come to the added dimension that California car registration is well known for the smog check. But, why again do you have to pay a fee for a service they dont require? You must be logged in to perform that action. Food for thought. But these numbers havent even scratched the surface of what high-end RVs cost. Not surprisingly, Flathead, Granite, and Deer Lodge counties have the largest amount of luxury vehicle registrations, according to data in a vehicle registration primer for the Montana DMV. The practice is so popular that there are even companies with the sole purpose of facilitating out-of-state vehicle registrations in South Dakota. The reasons why Montana vehicle registrations are so popular expand to businesspeople. There are three registration periods currently offered in Montana: 12-month, 24-month, and permanent. That is a pretty lousy deal assuming you still like the car or truck and want to keep it but arent interested in pouring money into fixing emissions equipment, much of which may still be operating but not well enough to pass the test. While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. For somewhere around 1200$ there would be nothing to do from our side except fill out a form. It looks like portions of our site are being blocked! This loophole is for cutting taxes on million dollar recreational purchases. Once we have proof of ownership through one of these means, we handle the rest. Most services are available online with the DMV or with a DMV-authorized partner! Ouch. Recreational vehicles, also known as RVs, can be quite expensive. Same as always. Whatever the case is, people are fleeing this proud state in droves, with more people leaving than are moving in. They can skip the sales tax if they purchase and register an RV in a state that has no general sales tax, such as one of the following: Out-of-state residents may form an LLC in Montana and use the in-state company to purchase and register the RV. We run BAT shipping, so we see where people are moving all the cars around. If this alone were the determining factor, you still come out ahead titling and registering your car in South Dakota. Its for the parents trying to get by who are tired of their hard-fought pay going up in smoke. That's like $17,000 per letter or number. You'll simply need to produce the certificate of origin from the manufacturer. The buyer will, of course, have to pay the $8 smog transfer fee. Thats a whole truck! Montana has no inspections and no emissions tests required for vehicle registrations. Ready to hit the road? The extraordinarily high cost of living is a prime reason for the very real exodus. They have a garage full of super cars with South Dakota plates (and we live nowhere near South Dakota. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. 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. So place an order to renew your Montana vehicle registration before noon today and you'll have your new registration sticker tomorrow. First, it does not charge sales tax on personal property. Establishing a Chain of Ownership for Your Vehicle 2. Heggen Law Office is located in a commercial building. MDT does handle interstate licensing and registration. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Articles may contain affiliate links which enable us to share in the revenue of any purchases made. Terms Of Service. First, you'll need to pay a vehicle registration fee. Although, of course, they benefit from it in more staggering monetary amounts. Lets find out how you can buy one, and what it takes to make it street-legal! This is the typical structure of the Montana scheme where somebody creates an LLC in Montana for the sole purpose of owning and registering the car in Montana and has no other connection with the state. Make sure to check out the whole series! According to a 2018 report by the Rapid City Journal, when an expatriate named Aldis Barsketis emigrated from the United States to Mexico, he noticed there was an astounding number of cars sporting South Dakota tags. Go. Many see it as asmart move. This scheme doesnt really pay off if youre buying a used 2004 Camry, but its tempting if you want to buy a six-figure supercar. This process earmarks the vehicle to an owner and is necessary to score a license plate needed to traverse public roads. In 2017, Montana legislators proposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000; aimed at out-of-state enthusiasts, House Bill 650 was nicknamed the. Copyright 2023 Anderson Advisors. The Montana LLC comes with real business responsibilities. Several people I know of use South Dakota. Oh, and by the way, the valid passing inspection must be within the last 90 days. 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. This includes transferring ownership from you to your LLC by filling out a bill of sale. You get out of the mandatory smog check. He wrote The Lemon Law Bible and Chryslers Turbine Car: The Rise and Fall of Detroits Coolest Creation. Theres a couple of reason why you shouldnt do this: The IRS knows about this scheme and will say, Nice try, but no.. Still, many people are willing to risk taking advantage of this loophole in the law. Non-Residents: Under 61-3-701 through 704, MCA non-residents who are gainfully employed in Montana must present their current out-of-state vehicle registration to the county treasurer's office. It had Montana plates, and the news made a special note of this. Nearly every service and commodity in the state are higher than the rest of the nation, and car registration is absolutely no exception. All rights reserved. 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. Some states are taking measures to crack down on residents who set up shell corporations in other states, including suing for tax evasion. The broader answer to this question is no, registering a vehicle in Montana is not just for the super-rich. If youve ever driven around town, and said, You know, thats a nice Ferrari. What this means for you is that, before you can do anything else, you need to pay that cheddar and fix your whip. It is such a well-known tax dodge, even my own accountant has suggested I use it to shield my vehicle from California taxes, says Jeff Wright, an LA-based car enthusiast whoowns a ranch in Montana. It's a strategy that you can agree with or not.. 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. We are your Anytown experts! Lets find out. So, even if you just conducted your biennial smog check five months ago, it is invalid. But then, after that, it will hurt a lot. But real moneyandethical considerationsare at stake. There are a few extra steps, but they are worth it in the long run to secure the kind of savings and benefits on offer. Along those lines, your first thought might be rich people taking advantage of Montanas complete lack of sales tax. So, for your very-average priced new car, you can go ahead and tack on an additional $253 in assorted California registration fees. New bumper-pull travel trailers are well into $50,000. Companies help facilitate it. 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. Ultimately, it comes down to each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually. 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 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. But if you dont change the registration to an RV, you might need a CDL. On top of this, you have to either be extorted with the smog abatement fee or have your car smog checked. They were listed at $2.5 million each. 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. Make, model, and color of the vehicle. We at Dirt Legal have done extensive homework to bring you the very best out-of-state car registration options. Check out some of our greatest hits below, explore the categories listed on the left-hand side of the page, or head to CR.org for ratings, reviews, and consumer news. (Californias sales tax, for instance, is 7.25%.) It didn't take long before he shared his secret with the world, even though he couldn't point out Clay County on a map. As the attorney in this relationship, I have to be the one to tell you the bad news, and its twofold bad news. 2022 Dirt Legal. Lets find out! Thanks for subscribing. 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. Suppose he is purchasing ten units and owns a business in LA. Cost was somewhere between 100-150 iirc, and you have to pay yearly. Why Is Everyone Registering Their Cars in Montana? Its no wonder people are leaving this state in droves.! Its a $750 value, and youll walk away with a custom tax reduction plan designed specifically for you. 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. So, you would be legally obliged to pay a tax . Dont poke the bear! I use option 3. A Ford Transit starts at $35,925. Submit your completed vehicle registration packet. Montana Registration - California DMV Montana Registration DMV Partner 4122 Monterey Rd, San Jose, CA 95111 1-408-225-2105 Online Services Complete It Now! DIRTLEGAL.COM IS A PRIVATELY OWNED WEBSITE AND IT IS NOT OPERATED BY ANYGOVERNMENTAGENCY. Charge multiple devicesThe circular design of the power strip allows for the 15" to coil up inside the body of the productmaking it easy to wrap up and throw in a bag to take with you when traveling. Imagine you've bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. Montana is not cheap in NC $ 50,000, including suing for tax evasion tax for... Hurt a lot farm equipment current rates for registration there out a form ( we... Willing to risk taking advantage of this, you are registering you whip out of state way, the passing! Nuisance than a significant expense we run BAT shipping, so we where. 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