Your Vehicles Will Be Registered In Montana Which Has No Sales Tax. Be sure to place it in the correct spot, as improperly placed stickers could lead to tickets and fines. I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? Of course, there is a difference between the supercar driving Silicon Valley technopreneur with a Lambo or Ferrari and a retirement-aged couple who wishes to spend their savings on a high-end luxury car or, as we mentioned before, a high-end RV. News, Reviews, Photos, Videos delivered straight to your in-box. Non-residents are those who do not live in Montana but want to register here. Next, you are required to have a Montana Registered Agent. Toby is an attorney on a mission to help investors and business owners keep and grow more. In a recent article, I quoted a new fifth-wheel trailer at around $109,000 MSRP.. I just wanted to show you why some people do this since it was a question that comes up from time to time. It's a great way to save money or travel the world. But withtighter emissions standards enactedinConnecticuton July 22, Colorado legislators slated next month to discussrequirements to significantly lower toxic air pollutionby 2027, and a handful ofautomakers including BMW, Volkswagen, and Fordrecently backing the USEnvironmental Protection Agencysdecision to restore California's ability to set its own strict tailpipe and zero-emission vehicle standards, debate is heating up over how far to go to avoid restrictions. You may order presentation ready copies to distribute to your colleagues, customers, or clients, by visiting https://www.parsintl.com/publication/autoblog/. Now, the question is: Should you do this? However, Montana isn't currently They claim that the spirit of the law is not being protected and that the abuse of this law has resulted in a lot of sham LLCs, whose sole purpose is to avoid tax. 5-10 years old. So, an industry has sprung up to assist people from other states who want to take advantage of Montanas laws while living elsewhere. Not so fast, Slick. After your LLC has been formed, your agent will provide you with all the required documents to start the registration process. Security Interest Filing Fees $8.24 for a security interest on all motor vehicles, including boats, trailers and snowmobiles. Fill out the form for a free consultation. The single permanent decal for off-highway vehicles is white and includes the abbreviation PERM. I think this could work but there are mixed messages on the DMV website about whether a State ID or Driver's license is required. Its wild to think about, but there are plenty of cars that easily MSRP over half a million dollars, and if you are in a state that collects, say, seven percent in sales tax, you are looking at a staggering tax bill of $35,000 or more. Military Employees: Non-resident military personnel stationed in Montana may register their vehicles in their home jurisdictions or in Montana, unless they are gainfully employed in Montana outside of their military duties. You would then be required to file the Articles of Organization. Thismeans that someone who spends $500,000 on a new Lamborghini need not pay an additional $36,000 or so in taxes toacquire. Theyll remotely handle the registration titling and fees. Recreational vehicles, also known as RVs, can be quite expensive. But real moneyandethical considerationsare at stake. Send us the title work for your car or pickup (or have Were here to tell you how easy Montana car registration can be, show you that you dont have to be rich to take advantage of it, and explain the nonmonetary benefits of registering your vehicle in Montana. Thanks for subscribing. Guide: How to Avoid Capital Gains Tax on Real Esta How to Invest in Real Estate with No Money, Why 2023 is the Year you Create a Land Trust. The largest collection of professionally-composed, state-specific official paperwork is close at hand. And as a bonus, you evade smog[regulations].. Its comical., Randy Nonnenberg, the founder of BAT, is more circumspect, although hes quick to say he has nopersonal vehicles bearingMontana plates. We don't believe that its for us to lecture that person to do that or not. If you form an LLC, youll need to do so by an agent registered with the state of Montana (or whichever state youre forming the LLC in). It is also required if you plan to sell your vehicle in the future. On the national average of 7.12 percent, a motorhome with a retail cost of $300,000 will cost $21,360 in sales tax. Snowmobiles that are used exclusively as rentals may be registered annually for the first two years, after which they must be permanently registered. Permanent registration (if all criteria are met), Registration certificate from the former state for temporary residents (if applicable), Vehicle registration fees (depends on the age of the vehicle), County option tax (based on the Manufacturers Suggested Retail Price (MSRP)), License plate fees if custom plates are ordered, $10.30 replacement fee (new plate number), $15.45 duplicate plate fee (transferring existing number and plate type to a new one), $25 for personally plates initially, and $10 at renewal, $10 Salary of Montana Highway Patrol and Retention Fee, the gross vehicle weight (GVW) fees for light vehicles. Got an idea for a future Coffee with Carl? Toby teaches extensively throughout the US to groups of investors and professionals, with many of his courses certified for continuing education credit for legal, accounting, and real estate professionals. You would then buy the vehicle in the name of that LLC. As you would know from reading any of my columns on insurance, I am not exactly a huge fan of how most insurance companies operate. One other advantage to a Montana vehicle registration is that it will appeal to people buying used or who intend to hold onto their Montana-registered vehicles for a long time. A provision in the Montana Code allows owners of a light vehicle that is eleven years old or older to permanently register the vehicle for only $87.50. Motor homes must also pay: Motor homes that are used as commercial vehicles and are issued truck plates must also pay the gross vehicle weight (GVW) fee, 61-10-201, MCA. Whatever your views are on smog and emissions (we all think smog is gross), we all know that smog gear on cars makes them less reliable and less efficient, and smog gear is always failure-prone. The bureau then issues a clear title. I use South Dakota through Americas Mailbox. Oh, thats interesting, I thought. Overall, vehicles cannot be legally driven in the state without being registered with the department. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. This is something that we can all do even if were not buying Ferraris. Montana Liens. As illustrated in the case of Thomas v. Bridges, 2013-C-1855 (Sup. Motor vehicle titling and registration. If your name, address, and/or county has changed or you no longer live in Montana, you must renew your registration at your local County Treasurers office. Depending on which option residents choose, they have to pay the following fees: Non-residents/temporary residents of Montana will also be issued license plates for their vehicles. A provision in the Montana Code allows owners of a light vehicle that is eleven years old or older to permanently register the vehicle for only $87.50. To start an LLC, you must first come up with a unique business name. Any erasures or deletions on the title void the document. However, a lender cannot collect on a security interest if the owner of the vehicle has not acknowledged the security interest by signing the title or Security Interest Action form (Form MV81B). According to AARP, the national average state and local sales tax comes in at 7.12 percent. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana,accordingto the Montana DMV. Be prepared to pay title and security interest/lien filing fees. It is no coincidence that the states with the highest car taxes also have the strictest inspections and emissions testing, which Montana doesnt have. Can anyone legally register their car in Montana? Under state law, all motor vehicles including motor homes; motorcycles and quadricycles; travel trailers; utility trailers; all-terrain vehicles; sailboats over 12 feet in length; motorboats, jet skis and other motorized vessels; and snowmobiles must be registered with the state. The people who have Montana license plates are like the people who put the fake handicap badges in their car, says Paul Zuckerman, an attorney in Los Angeles and avid car collector. Gotta pay for it somehow.. Montana has long been a bastion of tax freedom for many years, so it was one of the original havens for supercars. "My car was stolen and the insurance company won't pay me." The basic concept of the process is known to many, but the specifics are a little harder to nail down. It had Montana plates, and the news made a special note of this. You must renew your registration by the end of the following month, which is indicated on the registration decal on the rear license plate. The TakeawayIf you have any questions about the best tax decisions for YOUR unique situation, I encourage you to take advantage of a complimentary Strategy Session as a blog reader now. Mail the completed form and a $10.30 fee for all motor vehicles, including boats and trailers, to the, Proof of ownership, for example, notarized bill-of-sale, cancelled check, purchase invoice, Include the circumstances through which you acquired ownership, This value is determined through the National Appraisal Guide (NADA) as of January 1 for the year in which you are applying, If the vehicle value is determined to be over $500, obtain a bond equal to the determined value through an insurance company, A copy of the NADA guide showing the vehicle value is required, If the vehicle value is determined to be $500 or less, no bond is required, If a NADA guide is not available for the vehicle, complete Statement of Fact. Montana Highway Patrol Salary and Retention Fee $10.30, $10 Montana Highway Patrol Salary and Retention Fee, county tax, $9 optional state parks support, certain special plate fees and, for light trucks, the gross vehicle weight (GVW) fees, $5 insurance verification fee if existing plates are kept on the vehicle, $10.30 Montana Highway Patrol Salary and Retention Fee, $5.15 insurance verification fee if existing plates are kept on the vehicle when permanently registered. I will quickly answer why. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. The exact name of your LLC has to be listed as the buyer. Starting a Montana LLC is quite inexpensive. Enjoy! For example, you reside in New York City, which has an 8.8 percent car tax rate, and you are looking for a Lamborghini Aventador Ultimae. 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