Register RV in another state

Here's a rerun story I've told on here before but it's been awhile so I'll repeat it. A few years back I was camping with a group of people in a campground here in California. We were all in law enforcement and one was the County Sheriff. While we were sitting around one day the Sheriff started up with a guy in a neighboring RV who had a huge Montana 5th Wheel and a big one ton truck both with Montana plates. The Sheriff actually started talking to him because he wanted to move to Montana when he retired. During the conversation the guy revealed he didn't live in Montana, he lived in California and had never even been to Montana. He then went on to describe his Montana LLC and all the taxes he avoided and the fact that he keeps the trailer stored in California and makes sure it's behind his fence so nobody sees the Montana plates. During the conversation he asked us what we did. The Sheriff told him he was the County Sheriff and the guy looked at me and asked what I did. I told him I was a Criminal Investigator with the State Franchise Tax Board. You should have seen the look on his face, it was priceless. Then I let him off the hook and told him I wasn't. But I do think he learned his lesson about describing his tax evasion scheme to strangers in a campground.

Snowman9000 wrote:
Jim, very interesting. Thanks for posting that. I would suspect that a fellow forum member or reader probably turned you in. I can't imagine the IL Dept of Revenue having people with time to browse forums looking for violators.

Why wouldn't they? You're talking big money if people are unlawfully avoiding taxes. They have people whose job it is to find those people so why not troll forums looking for cases?

The California Highway Patrol's budget comes from vehicle registration fees. The actively go out and look for RV's with out of state plates. They will then watch those vehicles on a regular basis to determine how long they remain in the state. Once they documented several months of the vehicle being in the state they have DMV send the person a letter saying they have information they have a vehicle in the State that needs to be registered in California. Many of these people then comply and go to DMV and sign a document under penalty of perjury that the vehicle has been in the state less than 30 days so they don't have to pay penalties. Well too bad because CHP already knows how long the vehicle has been here and the person ends up with a felony perjury charge.

We all know the guvmint doesn't function on a moral foundation. But there are laws. The fact that mowernmech deems his own transaction as a "loophole" offers enough evidence to know that's it's not really right but jump through enough hoops to make it legal. Legal and right can and often are 2 very different things. The point I was trying to make, leaving lawnmower man out of it for a second, the OP asked about registering in another state to avoid a higher tax rate. Can it be done legally? Maybe. At what risk and effort? Ethical or moral? In my opinion no. But then we all know we don't run on the same moral platform. Some folks don't care. I do. As is well documented a lot of folks have tried this. A lot of folks also got caught and paid hefty fines. Some still get away with it. Roll the dice if you will. I don't gamble. I might pay more, but ol man guvmint leaves me alone. That is a hill I am not willing to die on.

ct1964ups wrote:

golfoh1 wrote:
I am wondering about registering the RV in another state where it is less expensive.
I heard you can register in Texas, Fla., Montana for example. Can someone give any input on doing this?

Like some one stated on here...Fla is a great state to register an RV in...SD fee was at one time $450.00 a yr to register an RV...Fla only $74.00.....Chuck

In SD my motor home and car combined plate fees are a little over $200 per year.
A few years back they were $186 per year.

No just what is legally correct
Ron

I disagree (obviously).
If it can be done LEGALLY, it is not wrong. If there is a loophole by which one can avoid paying any tax, that loophole was put there by the legislature specifically so people could take advantage of it. It would be foolish to not do so if or when you can.

KNOW the rules.
COMPLY with the rules.
DOCUMENT your compliance.

The point, is and I think Jim lends credence to this, that most folks looking to do this are attempting to evade the taxes in their home state. The most likely proponent is to save money. But regardless what hoops you feel like you can jump through to make this happen, it's tax evasion plain and simple. Unless you have a legitimate reason - and many of you might - why put yourself in that position? Pay what you owe and if you can't afford it you have no business owning it. I get irritated picking up the tab for people who have enough gall to own something as frivolous as a motorhome but won't pay their share of taxes. Guess who picks up the slack? Your fellow taxpayers. Meanwhile you reap the benefits at home that you didn't pay for, like schools and roads etc etc. Mind you I know some have a legitimate reason and I don't mean to ruffle those feathers. But for those attempting to do it to save a buck it's wrong.

It is sometimes better if you just bite the bullet...you will sleep better..

Jim, very interesting. Thanks for posting that. I would suspect that a fellow forum member or reader probably turned you in. I can't imagine the IL Dept of Revenue having people with time to browse forums looking for violators.

not claiming to be an expert, but am speaking from actual personal experience.

Most states have laws about registration of vehicles. all motorhomes are vehicles. here in Illinois, the law is 30 days. 30 days after an Illinois resident brings a vehicle into this state, it must carry Illinois plates (and to do so requires complying with Illinois sales tax laws.)

My Montana LLC bought my Monaco Knight from a dealer in Florida.
For almost a year, I had documentation that the RV was never in Illinois for 30 consequtive days, campground receipts, fuel receipts, etc.

2 years after I bought the Knight, I gota letter, followed by a phone call from a very nice gentleman from the Illinois sales tax office.

Florida (lazydays gave me a florida temporary plate...) called Illinois and told them of my RV the day I bought it...

The revenuers troll these forums, and the guy who called me knew my user ID on IRV2, where I had discussed this issue.

"IF" I had been able to prove the Knight had never been in Illinois more than 29 days in a row, I would have fought and probably won, but they even knew where I'd winter stored, and claimed to have pictures.

I paid up without a squak. 6.75% of the difference between my new rv and my tradein. Over $7k including penalties.

There was never any talk about felonies or prosecution, but then I caved right away and paid what they asked. My talks with the revenuer were all very cordial.

I will not try this again.