Iowa sales tax law change

rgatijnet1 wrote:

wallynm wrote:
And that is the exact point - Legally and an Montana LLC for private ownership in Iowa is not legal. Legal business is another story and mY be legal Montana LLC.

rgatijnet1 wrote:
I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.

Here is what is mentioned in the Iowa Tax code:
If a resident operates the recreational vehicle owned by a Montana business entity for more than 90 days, an Iowa registration must be completed. Upon registration, or titling of a vehicle, Iowa use tax would be due and owing pursuant to Iowa Code section 423.7.

If I read that right, even if you are an Iowa resident, but DO NOT use your RV for more than 90 days you DO NOT have to obtain an Iowa registration. In this case, it is used "temporarily" in Iowa and therefore NOT required to have an Iowa registration. I know there are many people that only use their RV for a short time each year(average RV usage is around 5000 miles per year). Perhaps the State of Iowa is trying to intimidate all residents to pay the sales tax when, in fact, by the Iowa Tax code, SOME may not have to until they go over 90 days.

The way that is written, if I live in Iowa, lease a tractor to drive OTR from Big Sky Heavy Trucks in Billings (truck is registered to BSHT Leasing, LLC), I have to tag it in Iowa. Just don't see that holding up. I would be I could go to Iowa righht now and see trucks & trailers that haven't left the state in years registered in other states! I'd see trucks tagged in Indiana and Arizona, trailers with plates from Maine, Nebraska, and Tennessee.

So Iowans trying to do as our elected leaders in government and congress do all the time is illegal? Come on....they are leading by example, we would just be following. They can get away with whatever they want, living above the law and us "little people"...heck you can owe back taxes and fines in a government job (as many do) and not even get fired...yet they are going to hunt down motorhome sales tax evaders. What a joke.

Its not so much just paying the taxes, its knowing how the governments waste the money. Another example of those that produce, contribute, and have being forced to support those not willing. I could go on and on...

rgatijnet1 wrote:

wallynm wrote:
And that is the exact point - Legally and an Montana LLC for private ownership in Iowa is not legal. Legal business is another story and mY be legal Montana LLC.

rgatijnet1 wrote:
I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.

Here is what is mentioned in the Iowa Tax code:
If a resident operates the recreational vehicle owned by a Montana business entity for more than 90 days, an Iowa registration must be completed. Upon registration, or titling of a vehicle, Iowa use tax would be due and owing pursuant to Iowa Code section 423.7.

If I read that right, even if you are an Iowa resident, but DO NOT use your RV for more than 90 days you DO NOT have to obtain an Iowa registration. In this case, it is used "temporarily" in Iowa and therefore NOT required to have an Iowa registration. I know there are many people that only use their RV for a short time each year(average RV usage is around 5000 miles per year). Perhaps the State of Iowa is trying to intimidate all residents to pay the sales tax when, in fact, by the Iowa Tax code, SOME may not have to until they go over 90 days.

So the question is, does this statute mean that the individual is operating the RV for more than 90 days or does it mean that the Montana LLC owns the unit for more than 90 days? I'm going to bet on the latter definition.

Now if I'm an Iowa resident I would argue that a Montana LLC is not a business entity, but rather an asset protection entity, which it is. I would also bet that many judges would not understand the distinction enough to agree with me. Bottom line is that if you have an Iowa drivers license and a Montana LLC, you probably have a problem.

If a resident operates the recreational vehicle owned by a Montana business entity for more than 90 days

First of all, I am one of the stick in the mud types (or sheep) that believes you should pay taxes, if your state has them, you store or use the MH in your state and are not a full timer (which would allow fulltimers to pick a state). While not evaision, you are seeing more and more states updating code to crack down on this, thus codifying it as evaision.

The above code is loosely written. Iowa governance my interpret this not as consecutive days but rather days within a tax period. So running to IL to get gas every 89 days may not work.

wallynm wrote:
And that is the exact point - Legally and an Montana LLC for private ownership in Iowa is not legal. Legal business is another story and mY be legal Montana LLC.

rgatijnet1 wrote:
I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.

Here is what is mentioned in the Iowa Tax code:
If a resident operates the recreational vehicle owned by a Montana business entity for more than 90 days, an Iowa registration must be completed. Upon registration, or titling of a vehicle, Iowa use tax would be due and owing pursuant to Iowa Code section 423.7.

If I read that right, even if you are an Iowa resident, but DO NOT use your RV for more than 90 days you DO NOT have to obtain an Iowa registration. In this case, it is used "temporarily" in Iowa and therefore NOT required to have an Iowa registration. I know there are many people that only use their RV for a short time each year(average RV usage is around 5000 miles per year). Perhaps the State of Iowa is trying to intimidate all residents to pay the sales tax when, in fact, by the Iowa Tax code, SOME may not have to until they go over 90 days.

I always love it when this discussion or its many variations comes up. If you are an Iowa resident then you have to follow Iowa laws. There are specific laws that any resident must follow for their state of residency. If someone lives in Iowa and houses an RV in Iowa that is licensed in Montana, then they are breaking the law and owe the tax. If they are in compliance with Iowa laws and they can document that compliance then they don't owe the tax and the state can't collect it.

This isn't rocket science but it always results in someone screaming about taxes. It's compliance or lack of compliance with specific laws. If you comply, no tax. If you don't comply, then you owe the tax.

A Montana LLC may be completely legal if you COMPLY with your states laws and you can document that compliance. Don't comply and you pay. Pretty simple really.

rgatijnet1 wrote:

wallynm wrote:
They are braking Iowa law. Kind of like me avoid those DAM%^le toll roads in FL, plus some of the highest gas taxes in the lower 48 and all of the other sneaky FL taxes and charges.

rgatijnet1 wrote:


What is the problem if out of state residents can LEGALLY set up a corporation? Sounds like Iowa is going after people that are NOT breaking the law, but Iowa wants their money anyway.
I guess next they will not want Iowa residents to travel and spend their money out of state, thereby depriving the State of Iowa of the sales tax on any out of state spending during their travels.

I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.

So Iowa has made it illegal to be smarter than the average bear. Gee whiz no wonder so many people are leaving the mega tax states. What's next, will they make it illegal to go reside somewhere else to avoid paying ridiculous taxes?

And that is the exact point - Legally and an Montana LLC for private ownership in Iowa is not legal. Legal business is another story and mY be legal Montana LLC.

rgatijnet1 wrote:
I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.

rgatijnet1 wrote:

Dale.Traveling wrote:
Had to dig a bit to find it. Short story and rather then hot link here is what was written:

DES MOINES, Iowa —The state is offering a one-time deal to people who have been dodging Iowa taxes on motor homes.

The Des Moines Register says the offer includes paying the initial registration fee of 5 percent of the purchase price and a penalty of 10 percent of the fee.

If the tax evaders don't do that by Oct. 23, they could face fraud charges and fines equal to 75 percent of the fee that was evaded.

A law passes this past spring is aimed at keeping Iowans from registering luxury motor homes in Montana where out-of-state residents legally can set up a shell company and register a motor home there.

Montana doesn't charge general sales taxes.

What is the problem if out of state residents can LEGALLY set up a corporation? Sounds like Iowa is going after people that are NOT breaking the law, but Iowa wants their money anyway.
I guess next they will not want Iowa residents to travel and spend their money out of state, thereby depriving the State of Iowa of the sales tax on any out of state spending during their travels.

You forgot to highlight the important part of that statement.
Iowans...residents of Iowa....registering their MH's in Montana thereby illegally avoiding paying Iowa taxes/registration fees.
That is what Iowa is going after.......and right now is allowing those illegally doing so the opportunity to fess up. After the 'amnesty' date Iowa will be going after them.

Many states have done this.
Montana LLC is legit..provided ALL the rules/requirements/laws have been followed. Many MH's registered thru Montana are not legit and that is why states are getting aggressive.

wallynm wrote:
They are braking Iowa law. Kind of like me avoid those DAM%^le toll roads in FL, plus some of the highest gas taxes in the lower 48 and all of the other sneaky FL taxes and charges.

rgatijnet1 wrote:


What is the problem if out of state residents can LEGALLY set up a corporation? Sounds like Iowa is going after people that are NOT breaking the law, but Iowa wants their money anyway.
I guess next they will not want Iowa residents to travel and spend their money out of state, thereby depriving the State of Iowa of the sales tax on any out of state spending during their travels.

I avoid ALL taxes, tolls, and fees, that I can LEGALLY, in this state and any other state where I travel.