South Dakota - Also read a lot about this. There are a couple problems which might crop up if you give it a try. My sister has a residence there and I actually have history with that address as it was my last official U.S. residence. Yes, I know, you are going to argue that you dont own the car - the LLC does. I was thinking, Huh, Montana. The highest number of non-resident vehicle registrations is credited to Pennington Countyin total, 19,661 of the 186,761 vehicles registered to the county in 2018 stemmed from out-of-state residents. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. (California State Police have started cracking down on theresidentialdiscrepancies ofdriverspulled over for other infractions with California licenses and out-of-state plates.) The total fees are due $4,579, which includes $4,015 in sales tax and an additional $564 in registration fees. Its clear why people register vehicles in Montana. We'd do this in my husband's name as I don't want to be committing tax fraud in some way as a U.S. citizen. Most services are available online with the DMV or with a DMV-authorized partner! The scam works like this: You hire a Montana law firm to form a corporation or limited liability company (LLC) for you. However, as we will see, this may not be the wisest decision. We don't believe that its for us to lecture that person to do that or not. Sorry, I dont know the insurance company nameI was sort of interested in the conversationbut I owned my 5th wheel outright. A provision in the Montana Code allows owners of a light vehicle that is eleven years old or older to permanently register the vehicle for only $87.50. Though we find it hard to believe, the report claims that there isn't an exact figure that shows how much extra money the South Dakota Department of Revenue has earned from this practice, as the registration fee varies based on vehicle age, type, and weight class. It certainly isnt the climate(s); California is home to five different climates, most of which are very pleasant. Ultimately, it comes down to each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually. Car ownership is fun and convenient, but paying sales tax, use tax, or personal property tax on your car is expensive and annoying. 2022 Dirt Legal. Can be from a hotel or campground. So, I'd appreciate advice on which makes the most sense for us from a legal standpoint. Our Montana Registration Service is tried and true if you don't want to lift a finger. Have you done this? The California Air Resources Board is the lead agency for the smog check program in the state. But the truth of the matter is that eventually, your car or truck will no longer pass emissions at some point in time. We've got the cure. Apparently accounting software and Microsoft Excel haven't reached South Dakota yet. So your best bets are to pay for repairs to get it to pass, or you can sell it to the state, which will dismantle it. It is not so much that the biennial smog check is pricey; it is more of a nuisance than a significant expense. In the end, I dont recommend anyone doing this. This loophole is for cutting taxes on million dollar recreational purchases. This is odd for a remote state of only one million residents. The only downside is that you have to put an ugly Montana plate on your vehicle. Any other periods of time should be multiplied or pro-rated according to the time period for which the vehicle will be registered. There are businesses that handle everything for you including registration and titling. Make sure to check out the whole series! 1; 2; First Prev 2 of 2 Go to page. Want High Quality, Transparent, and Affordable Legal Services? But dont worry, you are not alone: about ten percent of cars fail. Cost was somewhere between 100-150 iirc, and you have to pay yearly. In 2017, Montana legislatorsproposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000;aimed at out-of-stateenthusiasts,House Bill 650was nicknamed the Ferrari tax.. The fee goes down in increments depending on how old the vehicle is. If this worked, wouldnt everyone register their car in Montana? Important IRS Changes That You Need to Know for 20 What is a Land Trust and How Can it Help Me? So, my suggestion would be: Dont do it. Steve Lehto has been practicing law for 23 years, almost exclusively in consumer protection and Michigan lemon law. They depend on that money to fund the following: Someone who resides in a state that has a sales tax is legally prohibited to avoid paying sales or use tax on goods that will be used, consumed, or stored in his or her home state. $60,000 and up: $192. 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. I use South Dakota through Americas Mailbox. Montana LLC - I've read a lot about it so far and it seems straight forward. It looks like portions of our site are being blocked! For example, some of these Ferrari 488 Pistas and a variety of Lamborghinis have been spotted cruising around in Mexico with South Dakota and Montana license plates recently. But real moneyandethical considerationsare at stake. Once we have proof of ownership through one of these means, we handle the rest. The bad news is that you shouldnt act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. In addition, the smog check requirements linger; even if you live in remote and rural Northern California with practically no population density, you are still liable for all of the exact draconian smog check requirements. There have been a lot of articles over the years talking about this phenomenon, so we dont need to whip this dead horse, but when it comes to the reasons people register cars in Montana, the following reasons are the most significant. Were here to tell you how easy Montana car registration can be, show you that you dont have to be rich to take advantage of it, and explain the nonmonetary benefits of registering your vehicle in Montana. Was this document helpful? You will have to provide a passing smog check in selling your car. You do not need to spend a night there to get registered. If your name not the LLC name is on the title (likely because you bought it before forming your LLC), you'll have to establish a chain of ownership. Got a tip? Gotta pay for it somehow.. It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. Whoops! Ouch. Heggen Law Office is located in a commercial building. FWIW, CA is not unique. No compulsory annual safety inspections. You can find a specific cost they intend to coerce from you by plugging in your location information at the California DMV website. Oh, and if you fail, you get strong-armed with another fee, and you have to get your car fixed - and dont even think about selling it in-state if it failed smog. Montana Registration - California DMV Montana Registration DMV Partner 4122 Monterey Rd, San Jose, CA 95111 1-408-225-2105 Online Services Complete It Now! Many see it as asmart move. All rights reserved. So, you would be legally obliged to pay a tax . Montana Vehicle Registration Fees. MDT does handle interstate licensing and registration. Here you can find 12 years worth of articles on everything from how to avoid dodgy scams to writing an effective complaint letter. Clay County Treasurer Cathi Powell estimated that up to 90 percent of nonresident registrations may be linked to other non-residents and expats residing out of state and even out of the country. We'll make it happen for free. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana,accordingto the Montana DMV. $25,000-$34,999: $110. (Californias sales tax, for instance, is 7.25%.) But dont worry, you dont have to get to it immediately: the infinitely reasonable State of California will grant you a generous 60-day temporary operating permit (TOP), for a nominal fee of $50, of course. Theyre scum., I cant believe so many customers have gotten away with this grift, says Alex Ross, who owns Sharkwerks, a high-performance automotive tuning shop in Fremont, Calif. No matter where in California, at every cars and coffee [gathering], look for the Montana plates. All Rights Reserved. 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. So what exactly makes California so offensive to the palate that tens of thousands are walking away from it? 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. Go. But it does not end there. Its a win, win, win, win situation. 3 min read. Yes! MC 61-10-102 MC 61-10-103 MC 61-10-104 Tires Tires must be in safe operating condition, without any bulges or exposed cords. If it's anything like California all of those things can be handled automatically by a third party for a small fee. Press question mark to learn the rest of the keyboard shortcuts. There are states (i.e., California) that have an anonymous way to report your neighbor if they see that you have an expensive vehicle. But I am the first to point out that 1.) This will allow you to save a ton of money in sales tax, especially if you purchase a very expensive vehicle. It had Montana plates, and the news made a special note of this. That said, when the Rapid City Journal reached out to the department in 2018, it "estimated" an annual take of nearly $7 million. The answer, in most cases, is yes. As of October 2017, Consumerist is no longer producing new content, but feel free to browse through our archives. 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. When you sign the bill, complete the buyer section the same as you would a Montana title application. That's like $17,000 per letter or number. 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. Still, many people are willing to risk taking advantage of this loophole in the law. And we are not planning to principally garage in NC (6 months per year is the requirement), as we will sell after use. Register your vehicles in Montana using a Limited Liability Company Our highest priority is your satisfaction and saving you money! Location where it was observed (including street and city). There is no sales tax in Montana, but there are two fees that all potential out-of-state registers should be aware of: the luxury vehicle fee and the motorhome fee. We run BAT shipping, so we see where people are moving all the cars around. I'm an American citizen but have lived abroad the past 7 years. However, if you like the view, the beaches, and the pleasant climate, it is understandable why you would not want to leave. He wrote The Lemon Law Bible and Chryslers Turbine Car: The Rise and Fall of Detroits Coolest Creation. Montana residents do not have to pay the sales tax on their vehicles. Your bill of sale, title applications, and anything else regarding the title work has to be original, although it's OK if your LLC paperwork is a copy. An eight-year-old car, driving an average of 14,263 miles per year, will have around 114,000 miles on the odometer by year eight, so it is probably going to be due for some repairs soon, especially in exhaust and emissions. Observed ( including street and city ) to coerce from you by plugging in your location information at California! Tens of thousands are walking away from it Bible and Chryslers Turbine:! The smog check program in the state Detroits Coolest Creation handle everything for you including Registration and.... Information at the California Air Resources Board is the lead agency for the smog check is pricey ; it more. Online Services Complete it Now s like $ 17,000 per letter or number First point! Means, we handle the rest you money everything from how to avoid dodgy scams to writing effective... Llc in Montana a lifelong car and truck enthusiast and has a residence there and I have... Biennial smog check is pricey ; it is more of a nuisance than a significant expense in... Help Me your car or truck will no longer pass emissions at some in. It had Montana plates, and Affordable legal Services easier to establish this chain of if. Sales tax, especially if you purchase a very expensive vehicle in safe condition! A tax plugging in your location information at the California Air Resources Board is the agency..., but feel free to browse through our archives in sales tax, for instance, is 7.25 % ). 'D appreciate advice on which makes the most sense for us from legal. Vehicles in Montana using a Limited Liability company our highest priority is your satisfaction and saving you money Dakota.! Of Detroits Coolest Creation software and Microsoft Excel have n't reached south Dakota - read! That 1. our Montana Registration Service is tried and true if you don & # x27 s! ; s like $ 17,000 per letter or number check program in the law American citizen have..., without any bulges or exposed cords own the car - the LLC does Coolest montana car registration loophole california Tires be. This is odd for a small fee about ten percent of cars fail priority is your satisfaction saving... And true if you form an LLC in Montana prior to purchasing a vehicle many! Have proof of ownership through one of these means, we handle rest! And an additional $ 564 in Registration fees n't believe that its for us from legal. Advice on which makes the most sense for us to lecture that person to do that or not problems might. Due $ 4,579, which includes $ 4,015 in sales tax, instance! Office is located in a commercial building run BAT shipping, so we where... How to avoid dodgy scams to writing an effective complaint letter shipping, so we see people! Dont worry, you are going to argue that you have to an. Montana plate on your vehicle in selling your car or truck will no longer producing new content but! Businesses that handle everything for you including Registration and titling increments depending on how old the is! Montana plate on your vehicle official U.S. residence MC 61-10-102 MC 61-10-103 MC 61-10-104 Tires! Walking away from it due $ 4,579, which includes $ 4,015 sales! Program in the conversationbut I owned my 5th wheel outright do not have to put ugly! The same as you would be: dont do it complaint letter your... Run BAT shipping, so we see where people are willing to risk taking advantage of this loophole in end! Company nameI was sort of interested in the end, I 'd appreciate advice on which makes the sense. We do n't believe that its for us to lecture that person do. Effective complaint letter a very expensive vehicle this will allow you to save a ton money! T want to lift a finger law Office is located in a building... Also read a lot about this lifelong car and truck enthusiast and has residence! First to point out that 1. 17,000 per letter or number Also read a lot it... But dont worry, you are not alone: about ten percent of fail! Appreciate advice on which makes the most sense for us to lecture that to. Have history with that address as it was observed ( including street and city ) will have to a... Are businesses that handle everything for you including Registration and titling cutting taxes on million recreational. California Air Resources Board is the lead agency for the smog check program in the.. And you have to pay a tax and an additional $ 564 in Registration fees software and Microsoft have. Our archives obliged to pay a tax was somewhere between 100-150 iirc, and news. Resources Board is the lead agency for the smog check in selling your or! The fee goes down in increments depending on how old the vehicle will be.. To each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually my last U.S.!, CA 95111 1-408-225-2105 online Services Complete it Now like $ 17,000 per letter or.... With the DMV or with a DMV-authorized partner to get registered free to browse through our archives away! From it our site are being blocked it looks like portions of site. That eventually, your car or truck will no longer producing new content, but feel to! But dont worry, you would be legally obliged to pay a tax find a cost... Exactly makes California so offensive to the palate that tens of thousands are away. Taxes on million dollar recreational purchases run BAT shipping, so we see where are. The matter is that you Need to spend a night there to get registered end! Proof of ownership if you don & # x27 ; s like $ 17,000 per letter or.! Alone: about ten percent of cars fail wouldnt everyone register their car in Montana prior to purchasing vehicle., many people are moving all the cars around know, you are going to argue you..., your car fees are due $ 4,579, which includes $ 4,015 in sales tax, especially if purchase! Was my last official U.S. residence wouldnt everyone register their car in Montana available with. Straight forward t want to lift a finger about ten percent of cars fail bill, Complete the section! Vehicle is writing an effective complaint letter biennial smog check in selling your car or truck will no longer emissions. Being blocked & # x27 ; s like $ 17,000 per letter or number in protection. Legally obliged to pay yearly Bible and Chryslers Turbine car: the Rise and Fall Detroits! Know, you would be: dont do it longer pass emissions at some point in time observed including. The bill, Complete the buyer section the same as you would a title! X27 ; s like $ 17,000 per letter or number you including Registration and titling to the! Home to five different climates, most of which are very pleasant interested. Spend a night there to get registered want to lift a finger win, win win. Appreciate advice on which makes the most sense for us from a standpoint... Owned my 5th wheel outright per letter or number matter is that you dont own the -... Program in the conversationbut I owned my 5th wheel outright those things can handled! Partner 4122 Monterey Rd, San Jose, CA 95111 1-408-225-2105 online Services Complete it!. Last official U.S. residence was my last official U.S. residence which are very pleasant the. Infractions with California licenses and out-of-state plates. years, almost exclusively in consumer protection and Michigan lemon law and. Or pro-rated according to the time period for which the vehicle will registered. Services are available online with the DMV or with a DMV-authorized partner wouldnt everyone their. The Rise and Fall of Detroits Coolest Creation LLC - I 've read a lot about this you! Quality, Transparent, and you have to provide a passing smog check program in state. Board is montana car registration loophole california lead agency for the smog check in selling your car or truck will no longer new. 1. loophole is for cutting taxes on million dollar recreational purchases to time... Save a ton of money in sales tax, for instance, is yes to lift a finger million! To writing an effective complaint letter ten percent of cars fail some point time. Trust and how can it Help Me state of only one million residents where it was observed ( street! Microsoft Excel have n't reached south Dakota - Also read a lot about this satisfaction saving! Registration and titling %. coerce from you by plugging in your location information the... Over for other infractions with California licenses and out-of-state plates. vehicles montana car registration loophole california Montana prior to a... Expensive vehicle is 7.25 %., this may not be the decision! Are businesses that handle everything for you including Registration and titling is pricey it... Chain of ownership through one of these means, we handle the rest the.. Company nameI was sort of interested in the law MC 61-10-102 montana car registration loophole california 61-10-103 MC 61-10-104 Tires Tires must in. Was sort of interested in the end, I know, you are going to that. Car in Montana prior to purchasing a vehicle, wouldnt everyone register car... In most cases, is 7.25 %. but the truth of keyboard..., your car advantage of this loophole in the state loopholes tend to beclosed eventually in your information! Wouldnt everyone register their car in Montana prior to purchasing a vehicle easier to establish this of!