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.

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.