buying rv

[gjleno]

Best states to purchase rv as far as taxes go.

[chisel101051]

Here is a real life story of mine. In 2003 I purchased a Monaco Dynasty and partially retired working 1/4 of the time with my employer. I bought the MH in WI and hired an attorney in Montana and started a LLC and licensed it there. All was fine while traveling. About 4 years later the state of WI sent me a notice to pay the sales tax plus interest and penalties. I fought this with my CPA for almost 2 years and lost. They put a lean on my house, levied my bank accounts, etc and it was a constant battle while we were trying to work this out. My accountant said I was legal and not to pay, the WI IRS said differently. In the long run I lost and had to pay over $20,000. I did not have a home in WI at the time this happened, only after I sold it and bought a home did they come after me. BE CAREFUL!!!

[allen8106]

gjleno wrote:
Best states to purchase rv as far as taxes go.

It typically doesn't matter anymore. Most likely your home state will charge you what ever their sales tax is for your rig. As an example; I bought my last rig in the next county over. When I registered it in my home county they charged me an additional sales tax because the county where I purchased the rig had a lower sales tax rate. Most of the time if you buy a rig out of state your home state is going to charge you their sales tax rate when you register it so you end up paying the sales tax regardless of where you purchase it.

[bikendan]

aragtopkindaguy wrote:
Hi
I'm Steve and I just retired and want to travel on limited funds. I think I want a small class A ( have looked at and considered class B like Rialta ) but I am not sure they are large enough for FT use. I have around 20k for the MH and also want to tow my Mustang Convertible,see username. Any and all advice from FTers is welcome. I already have a trip planned mapped and ready to go, 9066 miles, Fl to N Y, new england, grand canyon,L A, S F, etc. Thanx in advance.
Steve
A RAGTOP KINDA GUY

You should have started your own threadinstead of piggybacking on someone elses thread that's about taxes.

[aragtopkindaguy]

Hi
I'm Steve and I just retired and want to travel on limited funds. I think I want a small class A ( have looked at and considered class B like Rialta ) but I am not sure they are large enough for FT use. I have around 20k for the MH and also want to tow my Mustang Convertible,see username. Any and all advice from FTers is welcome. I already have a trip planned mapped and ready to go, 9066 miles, Fl to N Y, new england, grand canyon,L A, S F, etc. Thanx in advance.
Steve
A RAGTOP KINDA GUY

[resmas]

We are residents of Alaska. We've lived in the lower 48 for the last few years, and have bought several vehicles and a toyhauler here. We pay zero sales tax at the time of purchase. When we register the vehicles in Alaska, we pay no sales tax, either. For example - we just bought a 2011 Kia Sorento here in MD. The only document was a sales sheet (paid cash), and there was no sales tax anywhere on it. Cost for a 2-year registration (vanity plates) in Alaska? $135

[Cloughfam]

wbwood wrote:

lanerd wrote:
He didn't ask about registering, he only mentioned buying. So therefore, a state with no sales tax would be the best. Registering is another issue.

Ron

What states have no sales tax? I know there are some with no income tax.

Delaware does not have sales tax. That is why we buy anything we can transport ourselves home there. Anything that gets delivered or registered in MD we pay our beloved Governor his 6%.

[JKQ]

Montana has no sales tax & no vehicle annual inspection. Oregon is also sales tax free. For the purpose of clarity: If a buyer who lives in NY, FL, PA, any state for that matter that has a sales tax, he will pay the appropriate sales tax to his home state upon registering the vehicle. Some dealers DO collect sales tax even if the buyer is out of state AND they send it to the home state of the buyer not the state of the purchase. So, using tax free Montana as an example here is how the tax is avoided. The RV purchaser cannot live in Florida, register the RV in his own name & address in Montana because to register any vehicle in Montana the individual OR COMPANY must be Montana based. By forming an LLC (limited liability company)in Montana with a Montana address your LLC is domesticated in Montana and comes within the state laws for registering a vehicle. The cost to set this LLC up is usually in the $1500.00 area, peanuts as compared to the sales tax on an expensive RV. So technically the LLC owns the RV registered in Montana but you living in any state own the LLC.

[wbwood]

lanerd wrote:
He didn't ask about registering, he only mentioned buying. So therefore, a state with no sales tax would be the best. Registering is another issue.

Ron

What states have no sales tax? I know there are some with no income tax.

[lanerd]

He didn't ask about registering, he only mentioned buying. So therefore, a state with no sales tax would be the best. Registering is another issue.

Ron

[Go_Dawgs1]

As stated above it doesn't matter where you buy it, it matters where you register it. I can buy a MH in Oregon and pay no sales tax and then pay tax when I register. It is what it is.

[endlesstravel]

I'm no tax expert, but I know if you meet the requirements, you can claim your RV as a second home and get interest deductions on your RV loan, deduct the state sales tax, deduct the registration fees in most states. To be considered a "second home," an RV needs cooking, sleeping and bathroom facilities.
If you use your RV for "business purposes" you may be able to deduct some of you travel expenses (gas, food, etc.) and depreciation on the RV's value...t

[hitchup]

If you want to tag your vehicle in GA, it doesn't matter which state you buy in.

I'm not sure if you may need to pay the upfront ad valorum rather than the annual for the state of GA, plus whatever the sales tax is now. Most states have a reciprocal agreement and a dealer in FL will send the state of GA the correct sales tax. They did ours back in 1999. That's why we 'moved' to FL before we fulltime.

[JKQ]

It's not the state you purchase the RV, it's the one you register it in. Montana is the state of choice for many RV purchasers. It's necessary to form a LLC, register the RV in the name of the LLC with a Montana address. Their are a bunch of companies in Montana that specialize in doing that for out of state RV owners including forwarding the license plate. Deer Creek Corporate Services in Helena, MT is one of them.

[Javi1]

lanerd wrote:
Any of those with no sales tax....ie: Oregon, Texas, ect.

Texas has sales tax on rv sales... 'sides no matter where you buy it... your residence state is most likely gonna tax it at their current rate anyway..