Montana LLC's

[GDeen]

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.

[phorner]

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.

[hobobimmer]

As Jon stated, those with a legitimate business purpose for having their coach owned by a Montana LLC are in the most defensible position.

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

[MIsheeTX]

Has anything changed in this regard in TX?