Forum Discussion

Lipets's avatar
Lipets
Explorer
Nov 15, 2013

New purchase Sales Tax

What's the current thinking on registering in a tax free or low tax rate state.

I'm looking over $10K in tax. (10,000)

Is it of those things that are done all the time?

Are there certain states that welcome the income for registering in their state?
  • I had one of my clients here in NY try the Montana LLC. He got caught and it was a very expensive lesson. Look closely at the domicile and residency laws and unless you can comply to the LETTER of the law, do not do it. Also if you do decide you can comply, make darn sure you document your compliance with the law. Even then you may have to spend some $$$ to defend your use of the Montana LLC.
  • A lot depends on how much you are planning on traveling, if you spend less than 6 months a year in any state you can probably get Drivers License and vehicle registration in South Dakota.
  • There is a lot to read on this if you search on this and other rv forums.

    First check the laws of your home or domicile state. Most have some pretty strict rules about residents and vehicles. Here in Illinois, it is 30 days. If you live here, or move here, you have 30 days to get an Illinois drivers license and register your vehicles in Illinois.

    And yes, they are cracking down.

    I thought I was being very careful,but when my Montana LLC bought a DP from a dealer in Florida and took it home to Illinois, it took them maybe 14 months to come after me. $7.75 percent of a buncha money plus a $1300 penalty later, my bus wears Illinois plates.
  • Lipets wrote:
    What's the current thinking on registering in a tax free or low tax rate state.

    I'm looking over $10 in tax.

    Is it of those things that are done all the time?

    Are there certain states that welcome the income for registering in their state?

    I presume you mean WAY "over $10 in tax"....

    I see you're in New York- I believe that's one of many States that are cracking down ferociously on out-of-state registered vehicles, especially rv's.

    There's an interesting discussion on this very subject going on right now at IRV2- the O.P. in that case is an Indianian that got hit hard for his Montana LLC dodge, but there's talk over there about New Yorks' efforts, too.Here's a link to that discussion
  • Lipets wrote:
    What's the current thinking on registering in a tax free or low tax rate state.

    I'm looking over $10 in tax.

    Is it of those things that are done all the time?

    Are there certain states that welcome the income for registering in their state?


    I think unless you live there, it's illegal. Not the police here, I just tried every way possible to do it legally and there isn't one.

    Sorry for the bad news. In the end, my sales tax was $13K and plates were $5600. Price of ownership.....