Full-Timers & the Montana Sales Tax Dodge?

[CanoeStream]

Be sure you understand all the ramifications fully. This may be dicey if you currently file state income tax anywhere or hold residence as defined by any state. Dicey, as in "You may be subject to taxes, penalties, and prosecution..." I know that my state requires an owner to work through sales tax issues when trying to license any vehicle. I'm not the most knowledgeable tax person, yet know this would never work for my interests...

That being said, the Bretz RV dealership mentioned is a listed Airstream dealer...

Worth a read at least, from today's NYTimes (you must register, but it's free): In Montana, the R.V. Set Is Drawn by the Words 'No Taxes'.

Comments anyone?

[Karyn]

I find it interesting that Mr. Reid, in this article , was a retired elementary school principal. His income and retirement have been paid by his state taxes.

[67caravel]

Originally Posted by Canoe stream

Be sure you understand all the ramifications fully. This may be dicey if you currently file state income tax anywhere or hold residence as defined by any state. Dicey, as in "You may be subject to taxes, penalties, and prosecution..." I know that my state requires an owner to work through sales tax issues when trying to license any vehicle. I'm not the most knowledgeable tax person, yet know this would never work for my interests...

That being said, the Bretz RV dealership mentioned is a listed Airstream dealer...

Worth a read at least, from today's NYTimes (you must register, but it's free): In Montana, the R.V. Set Is Drawn by the Words 'No Taxes'.

Comments anyone?

Not long ago I saw a man at a local Baptist camp with a huge BEAVER COACH (somewhere around $400K). I asked him about his MONTANA plates and he said he lived in Texas but created a shell corp in MONTANA to shield the BEAVER from taxes... Said it was done all the time.

I asked him what he was doing at a BAPTIST camp and he replied, "I'm a BAPTIST working at this camp."

Hmmmm.

[Distantdrummer]

Originally Posted by xray

Not long ago I saw a man at a local Baptist camp with a huge BEAVER COACH (somewhere around $400K). I asked him about his MONTANA plates and he said he lived in Texas but created a shell corp in MONTANA to shield the BEAVER from taxes... Said it was done all the time.

I asked him what he was doing at a BAPTIST camp and he replied, "I'm a BAPTIST working at this camp."

Hmmmm.

Well hell the Baptist Hymnal or at least their rulebook says to give to Ceasar that which is Ceasar's. (I used to do that in Vegas quite often.)
It doesn't say anything about MONTANA. or TEXAS I guess.

[Iver]

Need some info. What is the best legal ... and ETHICAL ("render unto Caesar what is Caesar's" has real meaning to me) ... way to handle purchasing a new 28' Safari (you know the aprox $$) in Texas and living in CA? This will happen in December, so I have some time.

Iver

[wkerfoot]

Originally Posted by Iver

Need some info. What is the best legal ... and ETHICAL ("render unto Caesar what is Caesar's" has real meaning to me) ... way to handle purchasing a new 28' Safari (you know the aprox $$) in Texas and living in CA? This will happen in December, so I have some time.

Iver

Don't know how Texas handles an out of state resident sale and registration for transport, but when you register the Safari in Calif you will pay use tax, same as sales tax rates, to DMV with the rest of the registration fees. That is the way my Lincoln and Liner were handled, but both were private party sales not dealer.

Bill

[Action]

It is likely that the Texas dealer will not care much upon discovery that the unit is being sold to a CA resident for use out of the state of TX. The proof will be a copy of a photo ID usually a driver's license and the purchase contract drawn up for you with a non-Texas address.

Depending on your state, CA will be the entity that taxes it for plates and sales tax.

>>>>>>>>>>>>>>Action

[CanoeStream]

There's an article in today's Minneapolis StarTribune about folks who buy big ticket items in Montana to avoid sales tax -- Minnesota says it's after owners of RVs who've dodged sales tax. I don't think that link is behind a paywall. The article says the state has reconciled with 22 parties to the tune or $230,000.

I've talked with big rig owners in campgrounds who've done this (usually full-timers). You know 'em because they have Montana plates if they're doing it right. The article doesn't say how Minnesota found these tax duckers. The sure trip-up would be to apply later for Minnesota plates. Warranty service can be had at any dealer carrying a given brand but you'd have to wonder if in-state RV dealers could have it out for folks who try to dodge buying at home. The other safe 'out' is that Minnesota currently doesn't claim ya if you spend 6 months + 1 day out-of-state.

Gotta wonder where this dodge would end up if Congress actually gets it together on nationwide collection of internet sales tax. I've seen plenty of complaints from folks buying new Airstreams from multiple states away and honestly heard very little about Airstream buyers traipsing to Montana to buy. It's tough if there is no relationship motivating a dealer to give good service to an anonymous one-visit buyer -- no word of mouth to nurture.