Montana registration crack-down

You know what I also wonder, what happens if the MT registered people have an insurance claim. My insurance company knows I garage the car in Mass. If I told them I garaged it in MT and I had an accident or a theft, would that give them grounds to deny the claim since I falsified my insurance application?

 

Paul, a very good question. Here is an article that discusses the scam, including insurance issues.

https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059

Bottom line, tell you insurance company the truth or risk voiding your insurance. But of course if you tell them the truth then that will be exhibit A in your tax evasion trial. Nice!

 

I don't know if it's changed, but New York used to do things right.

Yes, you paid sales tax when you bought the car, but annual registration was based on weight, not value.

Do more expensive cars put more wear on the road? I don't think so.

 

we have a lot of cars.
some are on MT plates.
they live in CA, OH, TX, FL. they are all covered under hagerty who knows all of the info.
there is no issue.

 

Ross, you are dreaming if you have a car with a MT plate living in CA and think you have “no issue”.

You must register your out of state vehicle with the California DMV within 20 days after you brought it into the state to avoid penalties. (CVC 4152.5). When you register it you are required to pay sales and use tax in addition to the registration fees. So it’s not “no issue”, you just have not been caught yet.

However, here is the CHP web site to report tax and registration cheaters:

https://www.chp.ca.gov/notify-chp/chp-reg-(out-of-state-registration-violators)

Why, don’t you send me your particulars? I can input them into the website and we can test your theory?

 

firstly, you have no idea what my situation is nor who these cars belong to, and how they are registered etc.
and i am not about to share that with you on a public forum.
secondly, my statement about there not being an issue was regarding hagerty.

do you work for the government or something?

 

exactly
most of these guys who do this pray they don't get into a wreck
or worse yet
have the car stolen

 

Ross, the impression your post left was you were saying there was “no issue” to having a MT registered car live in California. As is obvious to everyone, that is not correct. I was using an old lawyer’s tactic of making an outrageous statement (suggesting you turn yourself in) to prove that you didn’t believe your own statement.

I don’t work for the government but I also don’t think people should be lulled into making bad decisions that amount to tax evasion based on assurances from others that there is “no issue”.

 

Ron
nice job you exposed him for what he is
a tax cheat
pure and simple
he will eventually get busted
then what?
he is the one who will have sleepless nights
not us

 

Here is where it is not possible to speak in absolutes. So much depends on the laws in the State in which you live.

In Massachusetts I could not register my car in MT and tell the insurance company that it is garaged in MA. Since this is illegal in MA, the insurance company would be a participant in a fraudulent transaction. The company simply would not do that since it would potentially expose them to both criminal and civil liability. So in this case an insurance company, even your insurance companies, would definitely care.

 

and therefore i am glad that i do not live in MA, or have any cars there.

 

Not only that, but a few wealthy individuals have moved to FL in order to avoid state income tax.

 

That’s a very good point. Likely true in California also, though I had not thought about.

I had the reverse happen to me. My daughter moved to Austin with her CA registered car. When I told State Farm in CA about it they dropped her policy and made her register her car in Texas and get insurance from a Texas agent.

 

In CA there is a very active practice of people who establish “residences” of convenience in no tax states but continue to “live” and work in CA. The state is very active in going after those people. I know someone who was prosecuted for just that. He was big time player: Rolls, his and hers Ferraris, motorcycles, jet, yacht, race team, mansion, hung out with celebrities. Fell back to earth real hard. You don’t want to mess with the tax authorities whether it is income tax or sales and use tax. When you take revenue from the state it has always been worse to them than killing someone (remember they got Al Capone for tax evasion not murder and mayhem).

 

Been following this thread for a few years. Took an ugly turn which is unfortunate. No one wins. No one has to win and what ones opinion is, versus another on taxation, legal advice or character traits is strictly an opinion and always will be.

Attorney’s fight each other for profit all day long at someone else’s expense. No different when a government authority and a low paid agent of the state has determined that others are not paying their “fair share.” And one has to prove their innocents.

A Billionaire has a different goal or situation than a millionaire as well as a thousandaire. The Billionaire can absorb the battle based on opinion or desire..... The millionaire may not see the value to fight and the thousandaire cannot afford to fight at all. The thread is never going to resolve that reality. Don’t make it personal or ugly. The State of GA is enforcing its law, pure and simple. Those living there should move if they feel the cost of living there from a taxation perspective is punitive. Montana and it’s authority will take your money, but that does not mean you have met the letter of the law where you reside. And your opinions may differ?!?!

Buy your car, drive your car, live where you live. Register the way you see fit. You have a problem or a loss, it may be a huge negative. A billionaire does not care but maybe most of us should?

All the best. I hate to see small screen attitude ruin a good discussion or dialogue. Just not worth the screen time. Cheers!


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We have good friends who did move to FL a couple years ago to avoid the MA income tax. He has a very successful business. MA put them through the wringer to prove they had moved. They have a rental apartment in Boston, but they have to be very careful not to spend too much time here.

I respect them because they actually moved and obey the law, unlike some who pretend they live elsewhere but continue to live here.

 

One of my neighbors moved to Texas in preparation for selling his business. Two year process

 

what a ******** post. You have no information whatsoever excerpt an OPINION of your own about Ross’ situation. In my opinion calling someone a tax cheat in a public forum is slanderous. ****ing disgusting

 

I would just say. Once you’re on your states radar, the “Lovin “ your receiving isn’t near the “Lovin” you’re going to receive (yearly) from your state tax examiner.

 

There are 50 states in the union and 50 different sets of laws. They are all different. Some states don't care. Some states it's entirely legal. Some states they pursue everyone for pennies. Others, only when it can get someone promoted. Bottom line: If you are not intimately familiar with the laws of the state in question, then you have no idea what is legal and what isn't.

I have used the Montana LLC thing to register a number of vehicles and have saved thousands in over taxation. It is completely legal in my state. I am not a tax "cheat", I am simply not being overtaxed. So save your accusations of tax fraud to yourself.

Those who are first to cry foul, usually are the ones most guilty of that offense. Back in the days of playgrounds, we phrased it as "The first who smelt it, dealt it."

 

Absolutely. Memphis, TN I presume? I presume a "resident" of TN?
Tennessee Code Title 55. Motor and Other Vehicles SS 55-4-101:

(a)(1) As a condition precedent to the operation of any motor vehicle upon the streets or highways of this state, the motor vehicle shall be registered as provided in this chapter.

(2) The registration and the fees provided for registration shall constitute a privilege tax upon the operation of motor vehicles.

(b)(1) The commissioner shall be, and is constituted, the registrar of motor vehicles and, except as otherwise provided in chapters 1-6 of this title, every owner of a vehicle intended to be operated in this state and required by this chapter to be registered shall, before same is operated, apply to the department for the registration of, and the registration plates for, the vehicle.

(2) Notwithstanding subdivision (b)(1), any regularly licensed passenger motor vehicle that is not operated for hire and is owned by a nonresident who establishes residency in this state may be operated in this state for a period not to exceed thirty (30) days from the date that residency is established.

Reads pretty clear that non-resident has up to 30 days to register the car.

 

Regardless of your fine cut and paste skills, it is entirely legal in the state of TN.

 

And the circle jerk continues....

Real attorneys get it wrong and lose all the time. Ask the guys on death row.

Why does any one care? Why does one sit behind the computer and play attorney. Who wins? Who cares if someone is breaking the law? I mean if a crime of passion or harm is being perpetrated and you turn a blind eye, shame on you. But hell trying to enforce tax law and opinion over the web is really a waste of time.

I thought I unsubscribed, I will try again. Y’all keep at it, cause it is really important. Once you figure it out, tell me why we have cars that are faster than the speed limit or why we have bars with parking lots? Yet we all speed and go to bars (generalization, some people probably cannot legally drive or do not drink).

Y’all have fun. Happy Thanksgiving.


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cool, I’m truly considering TN for a future home. Please show us the statutes that allow MT registration of cars domiciled in TN for individual use and, if required, the standards and definitions for corporate use that allow cars operated in TN as part of a bona fide business to be registered elsewhere.

You obviously know the regs since you told him he got them wrong. And you obviously have nothing to fear by showing us the facts given your certainty that it’s entirely legal.

I think that would greatly help the thread and readers and stop the accusations by some. TIA.