A recent article that is of interest regarding the State of Massachusetts and the Montanna LLC's.
http://www.rvbusiness.com/2010/04/st...RV+Business%29
A recent article that is of interest regarding the State of Massachusetts and the Montanna LLC's.
http://www.rvbusiness.com/2010/04/st...RV+Business%29
I think it's only a matter of time and this will be enforced in every state. I know because I got caught
Interesting that Mass. is used in so many of the examples set. When we talked with a Montana attorney, the first thing they asked is where you lived. In our case Ca. He explained the law in Ca, but used Mass. as an example of a state that had made the corporate ownership illegal there, I assume via this 30 day garaging rule.
If you want to do it, find out exactly what YOUR state's law is, and follow it. Period.
You shouldn't be ashamed to research the law, and find ways to save money via LEGAL decisions.
If questioned then stick to your guns, if you have followed the law, you are ok.. If not then you would be wise to just pay up.
As far as I am concerned a Montanna LLC without a legitimate business purpose was and is tax evasion. It's sole purpose was to avoid the payment of sales taxes or licensing fees. All Massachusetts did was enact a law to state the obvious.
If we as motorhome owners want to claim unfairness however, look at the states on the license plates of semi-trailers. Even in Massachusetts I'd be willing to bet trucking companies register their trailers in OK or TN probably due to favorable fee schedules or cost but it would be impossible for anyone to enforce the law as it is being applied to RVs. The probable difference, apart from proving a trucking company that does operate nationally, houses the trailer and only uses the trailer in MA for example is that the trucking company does have a presence in the state to which the trailer is registered.
This is all about risk versus reward. If I were to spend between one and two million on a coach I would risk doing a Montanna LLC, but I would also test the climate to see how my home state was enforcing its laws. If I lived in a cash strapped state like CA or NY or MA I don't think I would take the risk of it.
Was in Prevost Ft Worth last week for a day and they were very busy. Week before the race at TMS and lots of pre-race traffic as well as snow birds passing through on their way home. The number of Montana plates was amazing. Meant to do a count while killing time but did not get around to it - guessing though that 2/3 of the motorhome and star coaches at the facility had Montana plates. This is going to amount to a large chunk of change for states to go after which means many of them will do it.
The "resident" state has nothing to lose by going after those with Montana plates on their coaches. All they need to do is come up with a name and address and send out the bill. The burden then falls on the resident to prove that they don't owe the past due sales and/or personal property tax.
In any event, it will cost the resident in either legal and accounting fees or fines and taxes...... maybe even both.
As Jon stated, those with a legitimate business purpose for having their coach owned by a Montana LLC are in the most defensible position.
If it ever came to a trial, I doubt that the average tax-saddled jury member would side with the million-dollar bus owner who will be portrayed as a tax cheat by the prosecutor.
I might have mentioned this in another thread on this topic. If I did, forgive me. If I didn't, here I go.
When you're checking your state's "Sales" tax laws, also check your state's "Use" tax laws. Usually they are together, and you've all probably heard the phrase "Sales and Use Tax." If you conclude that your Montana registration doesn't require you to pay "Sales" tax on your bus in your home state, then read the "Use" tax section and see if you conclude the same. I will not be surprised if you find out that you owe "Use" tax. I think in TN they are the same rate. It has been a while since I've done anything on this topic, so my guidance might not be sound.
Eric Faires
Huntsville, TN
Hello there,
We met you in Indio a while back. We are just about to cross the border with Canada from Wisconsin and are heading back to Anchorage. I just registered our coach in Alaska and paid around $800.00 or so. Did I miss something or do it the wrong way? We have had a nice time in the lower 48 and are now heading back to fish PWS for the summer. Hope you have happy trails.
Tim and Mia
1999 Marathon XL 40
Wow Tim, this is your first post to the asylum. Let me be the first to officially welcome you. I know you have been hanging out so I'm glad to see you finally jumped in. So your headed home, did Beaumont get you bus put right? You guys have a safe trip.
Hi Tim,
We registered ours in Eagle River and paid $134.00. Our previous one, a 2005 CC was $203.00. Don't know why you're having to pay $800.00.
We'll be hanging out at the Marathon place for the next couple of weeks and will be following in your tracks on the way to Anchorage. Let me know how the road is this year.