A friend was sales manager at a Florida RV dealer, and before state's crackdown, they used to help customers with Montana LLCs. No more.

Hello Fellow RV'Rs
Just wanted to say a big THANKS to all!! I contacted the Fla sales tax dept. and found out that it is legal for us to purchase the RV in fla and register it in Mt. under a LLC and not pay fla sales tax. We must leave fla no later than 45-days after purchase and cannot return for 6-months. Also you should get a IFTA Fuel Tax Cert. for the state of CA. CA law reads that all LLC are considered a business and their for Certifate is required. All other states don't as long as the registration reads LLC Recreation not Commercial! The certificates can be purchased at: Motor Carrier Section MIC:6 , State Board of Equalization, PO Box 942879, Sacramento, CA 94279-0065 for the fee of $30 well worth it to be legal. Thanks again for all the info you all helped us to research and ask the right questions. Hope to see you all on the road some day. Debbie

quote:

Originally posted by GaryKD:
What I will do with my next coach is Montana LLC it. I will take delivery out of the state and obey the 6 months and one day rule (for me it's no problem). I will then bring to coach into Florida and get a Florida title and tag (no sales tax due). I will keep the LLC alive only if it is an advantage for me. Otherwise I will let it expire after one year.

Gary,
I seriously question if this scheme would work because when you tittle it in MT you will do so in the LLC name. When you go to change the registration you will move it from the LLC name to your personal name. From a registration point of view this is no different from you purchasing a used coach from a stranger and thus tax will be due by you, the new owner.

Texas also has the 6 mo rule, and why would anyone keep it in a LLC name if this scheme could work.

I know in NJ when I wanted to move a vehicle from an LLC I owned to my own name so I would no longer have commercial tags, the state considered it a taxable event even though I paid tax when the LLC bought it originally. So I think you better check further on your plan, but I don't believe it is workable.

-- Bruce

I tried to do this 6 month and 1 day registration in Florida.

I January 2005 I purchased a new motorhome in NY and never titled it. Drove it to Florida on an intransit permit. Stayed for 3 months then drove to my home in Pennsylvania. Let the motorhome sit until September 2005 when I called Citrus County Florida and asked about registering the motorhome in Florida. They wanted the FL sales tax paid because the motorhome had never been registered and the tax had never been paid anywhere.

-Tom

Tom,
You are correct. One must title the vehicle somewhere and then 6 months and 1 day later it can be brought into Florida owing no sales tax.

Hi Bruse,
Thanks for the heads up. I already looked into the concern mentioned in your post. My attorney assures me if I follow his instructions setting up the LLC and the titling to the LLC in Montana and continue to follow his instructions when titling the vehicle in Florida (to me) there will be no problem. While I don't understand the details completely, that's what I pay him for. With all the high priced toys, in Florida, this is a common practice and a competent attorney should be able to lead his client through the process.

I researched this in 2007 when I was very close to purchasing another coach. I will do the research again before I purchase another coach. These laws change everytime the state legislature meets. Fortunately, in Florida the legislature meets only the first few month of the year.

A way around the "staying 6 months out of state" rule is to have the Montana LLC owned by a trusted friend/family menber residing in another state. I'm in the process at this time of setting up a Mt. LLC in this manner as our new Essex will be delivered late July. Garykd is correct in that specific procedures HAVE to be followed, but it can legally be done. I talked to Bennett Law and www.heggenlawoffice.com both located in Missoula, Mt. and decided to go with Heggen. The cost from either is around $1350-$1400 initially and $200 or so each year there after. The annual cost can vary somewhat depending of the age of the coach involved.

I should have mentioned that my previous posting is Florida specific. I'm aware that Louisiana, and I'm sure other states, have their own laws and procedures to follow.

It appears that at least one state is going after its residents who attempt to evade local taxes. HERE is a link to another thread which you may want to consider. ED

We looked at the Montana LLC, we decided against this as we would have a vehicle owned by a corp and is now subject to commercial rules and fuel and road taxes in certain states. We elected to obtain residency in South Dakota and registered all of our vehicles there. The tax savings swayed us and nor having to worry about inspections and being able to renew thru the web made this very easy.