Advice on registering car, NY to GA... TAVT vs Montana registration | Page 2 | FerrariChat

Advice on registering car, NY to GA... TAVT vs Montana registration

Discussion in 'Ferrari Discussion (not model specific)' started by Pazzo009, May 16, 2022.

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  1. Jeff3545

    Jeff3545 Karting

    Sep 4, 2018
    113
    SF Bay Area and South Florida
    Full Name:
    Jeff Nolan
    Florida is leading the nation in easy. I really like the fact that I can register for 2 years at a time.
     
    Texas Forever likes this.
  2. Dane

    Dane Formula 3
    Owner

    Apr 25, 2002
    1,512
    I was born and raised in Montana. I lived there when I bought my 308 so I registered it there; it has a Montana vintage plate. Why? Because I actually was a resident. Those who aren’t, shouldn’t.
     
    Texas Forever likes this.
  3. Pazzo009

    Pazzo009 Formula Junior
    Silver Subscribed

    Mar 30, 2014
    358
    Northern Atlanta Area
    Full Name:
    Marc C
    We also shouldn't pay the taxes we all do...This is what drove this completely legal way of avoiding tax, whilst paying an attorney from your state, and other fees collected by your state. Therefore I don't see why this offends you.
     
    Thomas Magnum likes this.
  4. Dane

    Dane Formula 3
    Owner

    Apr 25, 2002
    1,512
    Please. Don’t say you’re doing it for Montana….You don’t need an attorney. I personally formed a Montana LLC because I needed it to fly for a private individual whose airplane was in Montana. I closed it when I left. Why…because I moved.

    You pay, what $50 or so for registration? I think I paid $48 for my 308. Montana would have survived without the $48; the growth in towns like Bozeman, Kalispell, Whitefish and Missoula is insane. I bought my house for $204,000; it sold for $430,000 seven years later. Crazy growth.

    I’m not getting into a flame war here. Do what you think is right and not because the police won’t “target” you.
     
    Nospinzone likes this.
  5. Pazzo009

    Pazzo009 Formula Junior
    Silver Subscribed

    Mar 30, 2014
    358
    Northern Atlanta Area
    Full Name:
    Marc C
    I didn't say "I'm doing it for Montana". I'm simply pointing out that doing the Montana LLC thing isn't impacting Montana adversely, and is contributing to an attorney or agency within the state. So for you, a Montana native, I am uncertain as to why this would offend you.

    Aside from that, I work hard for my money, I own multi family real estate, I pay hundreds of thousands a year in various taxes. I then pay taxes again on purchases. I paid taxes on my vehicles already...I was simply seeking options and advice on how to curb this and what the repercussions could be. Many on here were very helpful and persuaded me to just pay the GA taxes and move on. You however, came here to scold me.
     
    amenasce and EastMemphis like this.
  6. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    22,364
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    lol, Montana allows this because it is profitable for them to do so.

    corporations should no longer register in delaware...............
     
  7. Pazzo009

    Pazzo009 Formula Junior
    Silver Subscribed

    Mar 30, 2014
    358
    Northern Atlanta Area
    Full Name:
    Marc C
    Lol...Thank you
     
    Texas Forever likes this.
  8. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    It’s not Montanas fault or the fault of people who decide to legally register their cars there. It is the fault of the individual states who decide to abuse their residents and rake them over the coals with unnecessary and absurdly high recurring taxes (like Virginia) that forces discerning and resourceful taxpayers to seek alternatives for legally reducing their tax burden, and Montana offers such an option.

    Went to an FCA event a few months back. 75% of the cars were registered in Montana. I made a joke that it was so good to meet a bunch of Montanans. Everyone had a pretty good laugh.
     
  9. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
    7,757
    Weston, MA
    Full Name:
    Paul
    I think whether or not it is legal to register your car in Montana depends on the laws of the state in which you live and garage your car.

    For example, I live in Massachusetts and garage both my Ferraris here. If I were to register the cars in Montana, I would be violating Massachusetts law.

    I'm curious, in which states do they allow you to live and garage your car(s) and yet legally register them in Montana, or any other state?
     
    Ira Schwartz likes this.
  10. Lunch Bag

    Lunch Bag Rookie

    Apr 18, 2022
    40
    Coastal Georgia and Coastal Maine
    Full Name:
    Rob
  11. Texas Forever

    Texas Forever Eight Time F1 World Champ
    BANNED Rossa Subscribed

    Apr 28, 2003
    85,600
    Texas!
    Tell that to your state bureaucrats and lawyers who are raking in the dough.


    Sent from my iPhone using FerrariChat.com mobile app
     
    amenasce likes this.
  12. Texas Forever

    Texas Forever Eight Time F1 World Champ
    BANNED Rossa Subscribed

    Apr 28, 2003
    85,600
    Texas!
  13. Texas Forever

    Texas Forever Eight Time F1 World Champ
    BANNED Rossa Subscribed

    Apr 28, 2003
    85,600
    Texas!
    Just FYI. It is 100% legal to register a car in Montana. The problem is when you park a Montana registered car in your garage in another state. That state has laws saying you must re-register your car in your resident state.

    This all started with golf pros. A pro buys a bus for $500,000 and registers it in Montana to avoid sales taxes and annual fees. He then drives it here and there while on the tour. When the tour ends, the pro drops it at a facility to get it ready for next year. After living in the damn thing for nine months, the last thing he wants to do is drive it some more. This is 100% legal.

    Now, let’s say you rob a bank, a lot of banks, and come up with the dough to buy a 250 GTO. You register it in Montana, but keep the car covered in plastic, up on blocks, outside your mobile home in Itch and Scratch, Texas. Son, you have a heep of problems.

    Here’s the good news. For a small fee, and the keys, I’ll be happy to keep your GTO or F40 in Texas. I’ll even put it in a garage. Just be sure to call before you come. It might be embarrassing otherwise.

    You laugh. I remember seeing a boat owned by the CEO of Caterpillar in St. Thomas in the ‘70s. It was painted yellow of course. Full crew, gassed, even the air tanks were fresh. Just remember, for a small fee…


    Sent from my iPhone using FerrariChat.com mobile app
     
  14. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    Yes, but you wouldn’t be registering the cars in Montana… your LLC would be. Under the Montana system that has become infamous, Individuals do not register vehicles in Montana, only LLCs do.
    There is existing case law which a state supreme court threw out a major lawsuit brought by a state where the state sued a resident of a motor home registered in a Montana LLC trying to recoup hundreds of thousands of dollars in penalties and back taxes. The court ruled that finding the resident guilty would upend the entire concept and system of LLCs in the United States. The state was basically trying to recoup taxes from an out of state LLC and while their resident was a member of the LLC, ruling in favor of the state would have basically negated ALL existing LLCs nationwide and not just the tiny percentage of Montana LLCs for auto registration. An LLC is an LLC and there’s nothing that can be done about it without destroying the whole concept of LLCs writ large.

    In response and Given the fact that this is completely legal and there is little states can do to stop it, a small number of states (like Georgia and some others) have passed laws that forbid their citizens from creating an out of state LLC for the sole purpose of registering vehicles.
     
    Thomas Magnum likes this.
  15. RedNeck

    RedNeck F1 World Champ
    Silver Subscribed

    Jul 8, 2016
    12,135
    The CSA
    Full Name:
    Me
    The thing is, even though when I was moving here it was nowhere near the scale of taxes that Marc will be up against, it still pissed me off to no end. Even though I'm close to TN, I even considered moving over the TN line...BUT I just couldn't get the house there that I could here for the money....Cost of living, sales tax, etc. was way higher for the lifestyle I wanted (which is pretty modest). Not even a comparison, even with the lack of state income tax. In the end, Georgia was worth gritting my teeth, bending over and just paying the tax. Anyone is more than welcome to sell their cars prior to moving...but then you'll just pay tax on the new ones.

    You also get credit for trading in, since it's property tax rather than sales. In Ohio, you paid sales tax on a car and that money was GONE. And if you traded in, you still pay sales tax on the whole purchase no matter what you traded in. Yeah, you could fudge the price in the title for a private sale but they cracked down on that too.
     
  16. amenasce

    amenasce Three Time F1 World Champ
    Silver Subscribed

    Oct 17, 2001
    34,344
    Full Name:
    Joe Mansion
    Double taxing is absolutely ridiculous.

    Same as when you have to pay sales tax on a used car. That item was already taxes once. But I guess we need to fund washington and their suites.
     
    Thomas Magnum likes this.
  17. EastMemphis

    EastMemphis Formula 3
    Owner Silver Subscribed

    May 25, 2019
    1,841
    Memphis, TN
    Full Name:
    John
    Sales tax is a state thing, not a Federal tax. It stays within the state.
     
  18. amenasce

    amenasce Three Time F1 World Champ
    Silver Subscribed

    Oct 17, 2001
    34,344
    Full Name:
    Joe Mansion
    Yes. Ok so expand Washington and local governments suites. And don't states send $ to the feds?
     

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