I have a buddy who lives in Colorado; he got the same deal. Boy, was he afraid! The state let him go with paying the tax and a small penalty. He was very happy with the outcome because what they originally were going to do was not good!
They were going to value his $200,000 coach at $575,000 - assess the tax on that amount - calculate the penalty and interest on that amount. When he showed some remorse they lightened the burden. He was lucky.
I formed a Montana LLC two years ago. I did so to try to save some tax money on my next coach. I spent $1100 forming the LLC. In view of these developments, I am going to dissolve the LLC and just pay the tax when I buy another coach.
Tuga & Karen Gaidry
2012 Honda Pilot