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Thread: Montana LLC's

  1. #31
    Join Date
    Dec 2005
    Location
    Newcastle, Maine
    Posts
    772

    Default

    Article about a Colorado RV Owners: http://www.fmca.com/index.php/motorh...to-tax-evasion

  2. #32
    Join Date
    Feb 2010
    Location
    Polk City
    Posts
    102

    Default Florida Reistration

    Yesterday I registered my bus in Florida where I reside. Total cost was $151. I will explain.

    When I acquired the bus, I did not buy it outright. I bought the seller's Montana LLC. So I was the owner of the LLC and all of it's assets which included the bus.

    I then held a "member" meeting and voted to dissolve the LLC. My registered agent submitted the LLC "Minutes of the meeting" to the Secretary of State of Montana and the request to dissolve was granted.

    Now I had a Montana title in hand as well as the letter from the Secretary of State declaring that the LLC was dissolved.

    I then took the Montana title, meeting Minutes, and the dissolution letter to my county tag agency. I also took a license tag that had come off of my previous motor home. Although the tag had expired, Florida law allows me to re-instate the tag so I would not have to pay the "impact fee" which, I believe, is $250.

    Why no sales tax? Well, Florida has a "Procedure # TL-08", subject "Sales and use tax -- Transfer of motor vehicles and mobile homes". Within that procedure is is a list of situations that are EXEMPT from sales tax.

    More specifically, Section C, item 7 which states "Transfer of certificate of title by a dissolved corporation to one of it's stockholders as part of the stockholder's ratable portion of the corporations assets. It does not constitute a sale of a motor vehicle to the stockholder."

    This procedure falls under Florida Administrative Rule § 12A-1.007 (25)(a)

    http://www3.flhsmv.gov/dmv/Proc/TL/TL-08.PDF

    Below is an excerpt from the rule:

    C. THE FOLLOWING SITUATIONS ARE EXEMPT FROM SALES TAX:

    1. Even trade of another motor vehicle, mobile home or vessel.
    2. Trade down.
    3. Divorce, a copy of the Divorce Decree must be submitted with the application for certificate of title.
    4. Inheritance.
    5. Gift (No lien assumed).
    6. Transfer of a certificate of title from a partnership to one of the partners as part of the final dissolution of the partnership.
    7. Transfer of certificate of title by a dissolved corporation to one of its stockholders as part of the stockholder's ratable portion of the corporation's assets. It does not constitute a sale of a motor vehicle or vessel by the dissolved corporation to the stockholder.
    8. When a Florida licensed motor vehicle dealer or a vessel dealer applies for a Florida Certificate of Title in the dealership’s name with or without a lien and the motor vehicle or vessel is being held in inventory for sale in the regular course of business, or is being operated in connection with such dealer’s business with a dealer’s license plate pursuant to section 320.13, Florida Statutes, if applicable.
    9. Transfer of a certificate of title into the name of the surviving corporation by reason of corporate consolidation or merger in accordance with Chapters 607 or 617, Florida Statutes, or a reorganization as defined in Section 368(a)(1), of the Internal Revenue Code, solely in exchange of stock.
    Ron & Suzie Hampton
    2001 Marathon H3-45
    Ford Edge towinf 4 down

  3. #33
    Join Date
    Jan 2006
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    anytown
    Posts
    8,908

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    Ron. you should go to the legislator that created that regulation that allowed you to own a former corporate asset (as a private individual) with no tax consequences and kiss him on the lips. I don't know of another state that would be so generous.

  4. #34
    Join Date
    Feb 2010
    Location
    Polk City
    Posts
    102

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    Jon,

    Some other states might have the same law. The Florida rule is certainly buried in a menagerie of laws.

    It probably would be difficult finding someone to own up to this rule.
    Ron & Suzie Hampton
    2001 Marathon H3-45
    Ford Edge towinf 4 down

  5. #35
    Join Date
    Apr 2010
    Location
    SW Virginia ( GOD's country ! )
    Posts
    563

    Default

    N.C. is not bad 1500.00 max tax on purchase price, and the vehicle tax each year is very small they refer to all motorhomes and coaches as house cars. also in checking on drivers liscence a class c is all that is required for private ownership, of course it depends on who you are talking to with the state

  6. #36
    sawdust_128 Guest

    Default

    In NC if you are talking to anyone who tells you other than a class C you are talking to people who think that they operate at a higher pay grade than the one they get paid with. We here at POG have our own NC DOT connection. What say you Will?

  7. #37
    Join Date
    May 2007
    Location
    Port St. Lucie, FL
    Posts
    1,745

    Default Case Settled..... kind of

    Quote Originally Posted by phorner View Post
    Just a heads up regarding the Montana LLC registered coaches.

    A friend of mine has just recently received notice from the State of Massachusetts. Apparently the state is demanding back taxes, interest, penalties, etc. not only for the current coach, but also for the one owned by them previously. Not a pretty picture as the dollars are very high.

    It looks as though the state compared a list of LLC registered vehicles against a list of state residents.

    No matter how this turns out, there will certainly be the cost of defending their position as well as many sleepless nights.

    Nearly every state is experiencing a fiscal crisis and I'm sure that they have attorneys working overtime trying to figure out ways to add revenues to their budgets.
    This situation was resolved this past summer. The owner of the bus ended up writing a check for $105,000. The "original" tax liability was about $35,000. Interest and penalties added $70,000 to the tab.

    Commonly most states will negotiate the amount owed seeking primarily the original tax.

    Not in this case.

  8. #38
    Join Date
    Jan 2006
    Location
    Jasper
    Posts
    3,775

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    Paul,

    That is scary stuff and will only get worse in our economic times. I mentioned this before, but the states are buying the data base from Montana and then matching the names. Here's the website to order the data base just for fun: https://app.mt.gov/cgi-bin/corprecords/corprecords.cgi

  9. #39
    Join Date
    Sep 2009
    Location
    Houston
    Posts
    240

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    Further to this discussion on Montana LLC's, in the State of Texas on motorcoaches, the tax is not a sales tax but a road use tax. THe road use tax is calculated at 6.25% while the sales tax is an 8.25% fee. The Business Analysis REsearch Team is active on this subject and the assistant to the Comptroller of Texas is heading up the initiative. I talked extensively with them on this just 10 days ago. In addition, in Texas, a 1% surcharge has to be paid on the full sales price if a vehicle weights over 14,000 pounds.
    Ron's case in Florida is interesting in that he dissolved a LLC that was outstanding. The legislative process is thorough and the tax planning authorities know their business. I would postulate for discussion that if the LLC existed on a motrcoach and the LLC was indeed originally set up with the obvious intent of evading a tax that was due on the coach in the state of the previous owner of the LLC, then the LLC was void by definition and had no standing in the transaction.
    Pres

  10. #40
    Join Date
    Aug 2019
    Location
    Spring
    Posts
    86

    Default

    Has anything changed in this regard in TX?

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