Anyone have their cars registered in Montana (while being a resident in another state)? I did some research about the approach of setting up an LLC (or using an existing one, managed by various Montana law firms), and registering through that. Seems like a good strategy for avoiding 'tax heavy' states ---- and, it is perfectly LEGAL. Does anyone have any personal experience with doing this? Any advice or recommendations for the best way to do this?
You can do it easily in South Dakota, too. A lot of RV people do it, they just use a mail forwarding service for their address and it works fine. In fact, they actually encourage it for the easy registration fees and the RV people avoid state income tax. Google it and see what you can come up with.
California has been cracking down on this. Not sure where you live, but our registration fees are horrendous and the state is chronically broke, so if it looks like you're registering out of state but live here you may run into some issues.
Contact the Bennett Law firm, ask for Duncan. they can help you with registering in Montana and they do it legally and can setup LLC with no hassle.. yes I have also heard like Bullfighter pointed out there have been some new rules to CA Registering. www.bennettlawofficepc.com
So you get pulled over with your Montana plates, show your home state driver's license, what happens next?
I seem to remember a 200 page saga involving 6 credit cards, a Lambo, and a MT registration a few years back...
Same in Florida where I think the rule is that if the vehicle is physically in the state for more than 6 months it must be registered in Florida, with Fla. sales tax paid.
They give you the third degree and try to trip you up and admit that you don't really live there.(Montana) They'll do stuff like look at your insurance card and see if it lists an alternative location. If they really can't prove otherwise you're fine. If they do think it's bogus you'll get a ticket and have to pay the fees later with penalties.
In CA anyway, note that it's perfectly legal to live here (CA), with CA license, and drive a vehicle registered to your business in Montana. As long as that vehicle is primarily used in Montana. There's no problem bringing it in temporarily, but you will want to document its Montana storage/use. The reg on my Ferrari is cheap enough, and tax deductible anyway, to not go through the hassle. I find it hard to imagine that anyone that can afford the car can't afford the annual registration.
And, if you are driving an exotic car with Montana plates, expect to be targeted by the CHP for extra attention. I.e., get used to pulling over and presenting your paperwork.
It's actually not where you live, it's where the vehicle is used. You can live across the border in NV but if the car is used primarily in CA you still have to register it in CA. Supposedly you can get exceptions if the state(s) where you use the vehicle have the same rules, ie both states want you to register there. I've done non-resident out of state registrations before, because the foreign state is where the vehicle is used. Interestingly, NC recently stopped allowing non-resident registration even if the vehicle is used 100% in NC. Can't understand why they wouldn't want the money. So really the OP needs to specify his home state if he wants to know if it's legal.
It's not the registration fees --- it's the sales tax (when first acquiring the car) that provides the incentive. For example if I were to purchase a $100K (used) car; with Montana reg I'd pay $0, but with reg in the state I reside I'd pay $5,000 (5% rate on all used cars). Sure, if I can afford the 100K, I can easily afford the 5K tax --- but, that's not the point. If I wanted to give away 5K, I'd give it to a worthwhile charity...
As you know this is perfectly legal and has been done numerous times. BUT, if you are thinking about buying a NEW Ferrari and registering it in Montana you might be surprised. FNA is aware of this tactic. Some buyers and dealers try to skirt the "100 mile dealer area" and say the customer lives in Montana. This allows the buyer to purchase a new Ferrari from any dealer in the US. It also allows a dealer to sell to any customer as long as the customer shows a Montana address. FNA started seeing a lot of new Ferraris registered in Montana. FNA sent letters to dealers and told the dealers to STOP registering cars in Montana.
Ok registration in Montana is pretty easy but have looked at insurance? It seems to be more complicated to get the car covered in Montana if you don't live in Montana.
Maybe he used the search function before posting? 1st post does not make a new forum member a internet newbie, cut the guy a break.
The bonus of registering in Montana is that every person who sees your car, including your kids, neighbors, friends, business associates and strangers consider you somewhere between a crook, tax dodger or someone with questionable ethics. At minimum they think of you as someone who doesn't mind flaunting a Ferrari while at the sametime showing that you are not paying the taxes 99.9% do because you used a creative loophole (that could be interpreted as illegal), to save some sales tax.