Dutch_12078
Aug 01, 2013Explorer II
Iowa getting tough on recreational vehicle fees
Add Iowa to the list of states taking aggressive action:
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The DOT and Iowa Department of Revenue are going after Iowans who have established limited liability corporations in Montana to register their RVs there to avoid paying the 5 percent Iowa registration fee on vehicles and annual registration fees.
Montana does not charge sales tax, so it’s become the Cayman Islands of recreational vehicles for people from all over the country who want to avoid paying their home state’s sales tax on the purchase of expensive motor homes.
“That 5 percent adds up when you’re talking a $100,000 RV,” Steier said.
That’s $5,000 on a $100,000 RV or, as the bill’s author Sen. Tod Bowman, D-Maquoketa, likes to say, it’s $50,000 on a $1 million RV.
However, that’s a fraction of the penalty if an RV owner is caught registering the motor home in Montana to avoid the Iowa fees. Steier said the Department of Revenue can slap them with a penalty equal to 75 percent of the purchase price.
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