Forum Discussion
monkey44
Apr 25, 2013Nomad II
Sometimes the state vehicle fees make no sense - a state will charge very high fees, and then many of it's residents will spend time AND money to find a way around the high fees.
If the states would recognize that, and adjust the fees, it would receive that revenue without so much hassle. But, because it wants more and more, and then more for each, then it makes people think about ways to defeat the fee. The states would each collect more, AND save all those enforcement costs.
I can give an example of MA fees - the state collects 7% sales tax on a new vehicle (or used) AND then the town where that owner resides tacks on another identical fee every year you own it ... that's every year. But the first year, that's $5800 on a $40,000 vehicle ... big hit.
SO, residents pay it annually, BUT most are very upset to pay the sales tax AND the property tax when you first buy it. That's a pretty big hit and it's duplicate, not just once. So, guess what lots of Boston residents do - if the car / truck/ RV is new and expensive, they register it at a sister or brother or mom that lives in New Hampshire - bingo, no sales tax. I know, other taxes apply in NH too, but not the 7% plus 7% duplicate fee.
If a state makes it worthwhile to legally avoid taxes, like the Montana LLC, people will do it ... so, the states are fighting a losing battle. Adjusting the tax structure will gain more revenue than raising and enforcing "higher" fees.
OMG, we should run for an election somewhere ... :) :) :)
If the states would recognize that, and adjust the fees, it would receive that revenue without so much hassle. But, because it wants more and more, and then more for each, then it makes people think about ways to defeat the fee. The states would each collect more, AND save all those enforcement costs.
I can give an example of MA fees - the state collects 7% sales tax on a new vehicle (or used) AND then the town where that owner resides tacks on another identical fee every year you own it ... that's every year. But the first year, that's $5800 on a $40,000 vehicle ... big hit.
SO, residents pay it annually, BUT most are very upset to pay the sales tax AND the property tax when you first buy it. That's a pretty big hit and it's duplicate, not just once. So, guess what lots of Boston residents do - if the car / truck/ RV is new and expensive, they register it at a sister or brother or mom that lives in New Hampshire - bingo, no sales tax. I know, other taxes apply in NH too, but not the 7% plus 7% duplicate fee.
If a state makes it worthwhile to legally avoid taxes, like the Montana LLC, people will do it ... so, the states are fighting a losing battle. Adjusting the tax structure will gain more revenue than raising and enforcing "higher" fees.
OMG, we should run for an election somewhere ... :) :) :)
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