License Costs?

[Jon Wehrenberg]

I think it would be a good item for discussion because there are advantages in registering with your home state, and advantages in setting up an LLC or business to register in another state. Both have disadvantages also.

In VA the cost of registration is so high, the alternatives are better. In CA, if I am not mistaken (like NY) the tax chasers are very good at ferreting out those that evade paying the cash strapped state its due, and when you get caught the penalties are harsh.

[Ray Davis]

In CA, when you register a vehicle (new or used) for the first time you effectively pay the state sales tax rate. In my county that was 7.75%, so registering a bus can be a pricey proposition.

I guess it's fairly common (with cars at least) that people try to avoid paying the road taxes by registering out of state. I've been told that they now have people watching out of state plates on the highways, and when they see the same plate for more than 30 days, they can go after you.

I've never seen it happen, or actually hear about anyone getting caught, but I've heard the warnings.

I think it might be cheaper to move!! CA is getting way to expensive, and I wanna get one of those large garages and dig a pit too!!

Ray

[lewpopp]

I have a 90 and registered in Montana. It is a permanent registration and I now pay no yearly fees. I believe you would qualify with the older coach. I cost me a few bucks over double the yearly cost but I'll never pay any more after this year.

Lew

[MangoMike]

Ray,

A free call to these guys would be in order. This is their specialty and they will provide you with a printout per state as the legalities. Worth the call to Alain, you can use my name.

Bennett Law Office
135 W. Main St.
Missoula, MT 59802
866.543.5803

Alain B. Burrese

Mike

[Jon Wehrenberg]

The methods the authorities use to catch cheaters goes beyond the local cop seeing the same out of state plate. The tow car plate should match the bus plate. The driver's license should match also.

A Montana LLC for example is a legal way to get around that because you can legally live in CA and drive a vehicle owned by a company you own in another state, but that begs the issue of if the coach is now a commercial vehicle such as the leased entertainer's coaches, thus requiring a commercial license and other things like a DOT inspection?

The whole topic is one of risk versus reward, and the biggest advantage comes in deciding before the coach is purchased what you will do so you not only get favorable licensing costs but sales tax treatment. If you get caught cheating however the consequences are daunting. We were at a PP rally in San Antonio about 15 years ago and an owner of a new bus just paid CA over $75000 in fines, plus the sales tax and registration that was due because he falsely registered the bus in Oregon (I think), registered his new (expensive) tow vehicle in Nevada, and had no residence or business in either. His driver license was CA. That was back when some converters helped buyers evade sales tax with PO Box addresses, which after a year or two would be dropped and the owner would re-register in their home state to beat the tax.

[lewpopp]

I've heard of some guys getting some stiff fines. I also understand that the majority of the people fined were the ones that parked their coach in plain view so the authorities could see it day after day at their residences.

I own a dude ranch in Montana, dude.

[JIM CHALOUPKA]

Ray, Look through the adds in the rear of for example Motor Home Mag. There are several attorneys advertising to set up the LLC via. Fax and Mail. You are supposed to get the license and pay the tax to the entity where the bus or anything else will primarrily be used. If you maintain a residence in Ca. and park in a place where your plate can be seen from the road and you drive around town a lot you stand a chance of getting caught. If however you are fulltiming or part timing you would probably be OK as you are not in any one place too long, and that is the circumstance that brought this all about. You can own anything through the LLC but stationary machinery in a plant for example, to avoid the personal property tax would get you into trouble. JIM

[Jeff Bayley]

I use Bennett Law Office like Mike suggested and they are pro's at setting this type of thing up to be all legal. They got my existing business licenced to do business IN MONTANA so that it satisfies the letter of the law. I don't tow a vehicle so the aspect of the tow vehicle matching didn't come into play. I've been ID's by a half dozen police in the last 2.5 years since I did it and it has never even come up as a question as to why the tag differs from my California isssued drivers licence. Not so much as a mention.

[win42]

My coach had Oregon plates on it when I bought it. I had a address available to me in Oregon. I bought plates in Oregon for the first six years. After considering the reasons stated above, and the nosey neighbors I finally changed to CA plates to match my place of residence. In getting my vin number certfied by a CHP to complete the license purchase, I was told; Even if I'm retired and not working in the state, if I claimed a property tax exemption on my place of residence, I must register my vehicles in CA. I have been told by other individuals, you can buy a vehicle in another State and keep it out of state for a prescribed period of time and put on 3,000 - 5,000 miles you can avoid sales tax. Check with CA DMV on that one for sure. However if you bring an expensive Prevost to be licensed here you will be charged large license fees acording to the vehicles current evaluation. My Oregon fees for two years were less than one year in CA and I have an old coach. If you work here, own property here I think you are required under law to buy the license here.
I did not do it out of the goodness of my heart, I did it to avoid penalty. In my opinion you cannot give the State of California enough money to piss away on useless endeavors. They get me for almost ten percent on my retirement income in state income taxes, not to mention sales and a laundry list of other taxes and fees. I owe them nothing, especially for the beat up deteriated roads we drive on.

[MangoMike]

I'm casting the first vote.

HARRY FOR GOVERNOR!


MM

Just a side note: In Northern Va. you pay a YEARLY personal property tax on all your vehicles to the tune of 4.2% of the appraised value.