This article explains why you should register your car in Montana and how you can do it if youre a non-resident. There are businesses that handle everything for you including Montana sapphire gravel commission for a client! Your registration can take up to several weeks. Still, many people are willing to risk taking advantage of this loophole in the law. It is also required if you plan to sell your vehicle in the future. Well, that will come out to $35,925 in sales tax. I use option 3. Otherwise, you're responsible for the The primary benefit is obviously the amount youll be saving up on sales tax. You must have JavaScript enabled to experience the new Autoblog. 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. Permanent registration Under 61-3-321, MCA all street-legal motorcycles and quadricycles must be registered permanently. i know all about tax savings with certain options. You must renew your registration by the end of the following month, which is indicated on the registration decal on the rear license plate. Multiple transactions need to be received by 4:00 p.m. Any transaction not completed by 4:30 can be placed in regular workflow or brought back the next day. Typically, they register in a Montana county that doesn't have a local-option tax. In addition to advising clients and investing in his own real estate projects throughout the United States, Toby is a member of the Forbes Real Estate and Finance Council and has authored several books, including Tax-Wise Business Ownership (now in its fourth edition) and 12 Steps to Running a Successful Business. In 2017, Montana legislatorsproposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000;aimed at out-of-stateenthusiasts,House Bill 650was nicknamed the Ferrari tax.. Along those lines, your first thought might be rich people taking advantage of Montanas complete lack of sales tax. I don't have a state ID or NC Driver's License. Im not entirely sure if you need a SD address or not to get registered. Your exotic or expensive car or RV is purchased by your LLC. Are you sure about purchasing in Montana to avoid sales tax? When I was in southern California this weekend, I was watching the news where a big F350 was stolen. Close observers would also have noticed a detail far more polarizing than the semi-lavender paint job:The Turbo came with a clean Montana title in the name of the sellers LLC, the listing said. Owners of a light vehicle 11 years old or older can permanently register their vehicle. Vehicle Registration for Montana Residents. How about the blue-collar guy who has grown his business over the years, has a fleet of work trucks, and is buying more? If youre going to use this strategy of buying your vehicle in Montana but Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. Montana has no inspections and no emissions tests required for vehicle registrations. Food for thought. Well walk you through how this isnt necessarily a deal breaker, even if your vehicle is financed. (Still need to check with progressive if they'll insure an LLC and foreign drivers but I've read they will) Any cons to this plan? Its a riska cheap thrill, echoes Zuckerman, the LA lawyer. This fee applies to vehicles valued at $150,000 or more at the time of registration. I am not the fun police so I will tell you that in many states, you can probably do the foregoing and skate for quite a while without getting caught. This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. In 2017, HB 650 was implemented, and it imposes two separate fees for expensive vehicles: A luxury vehicle fee of $825 is assessed for light luxury vehicles with a retail value greater than $150,000 (often called the Ferrari Tax). Your exotic or expensive car or RV is purchased by your LLC. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. 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. The bad news is that you shouldnt act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. Pay (All) Fees. They were listed at $2.5 million each. Montana LLC - I've read a lot about it so far and it seems straight forward. You have a choice: Tell the insurance company the truth (I live in Michigan, drive the vehicle almost exclusively in Michigan, store it and park it in Michigan, but have Montana plates on it in the name of a sham LLC.) If you tell them the truth, will they insure the car? Virginia is one of the most aggressive States chasing Montana plates because they have the dreaded yearly "car tax" which gives the owner the opportunity to pay for the car again over time in property taxes. Examples? Of course not! Any erasures or deletions on the title void the document. Permanent registration Under 61-3-321(11)(a), MCA snowmobiles are permanently registered except for those owned by companies that rent snowmobiles. There are states (i.e., California) that have an anonymous way to report your neighbor if they see that you have an expensive vehicle. If you need help with vehicle registration using an LLC, you can post your legal need on UpCounsel's marketplace. Overall, vehicles cannot be legally driven in the state without being registered with the department. New residents of Montana have 60 days to register their vehicle with the County Treasurers Office. Next, you are required to have a Montana Registered Agent. Its for the parents trying to get by who are tired of their hard-fought pay going up in smoke. Many collectable cars are denoted as gross polluters in the state of California and do not pass emissions tests. 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. Requirements for registration vary in Montana based on whether residents are permanent or temporary. And as we touched on before, Montanas lack of inspections and emissions testing are strong reasons. Montana requires every driver to register their personal vehicle for it to be driven legally. People from states usually have staggering sales taxes and oppressive inspection requirements to contend with just to get on the road. If the bureau does not have a security interest/lien release on file, the title is returned to the owner with a letter asking to have the title returned along with a security interest/lien release. Yeah thats lame. Some state officials insist that vehicle registrants have an actual interest in real property in the state, but the requirements for showing this are extremely minimal. Under 61-3-321, MCA registration fees are in addition to the county option tax levied on light vehicles and the fees levied in lieu of taxes on other vehicles. You may also have noticed quite a few South Dakota license plates, which is not a coincidence. For example, the age of a 2005 model year sport utility vehicle registered in 2004 would be -1 year, resulting in a depreciation multiplier of 100%. Subscribe to US Legal Forms to download, print, and complete legal templates without bounds. Driving an unregistered vehicle is a crime. The California Highway Patrol, for example, uses a special website that people can use to report vehicles with Montana plates or other plates that are out of state. If you purchase a vehicle from someone and no record of the title can be found, you may apply for a bonded title in accordance with 61-3-208, MCA. In the worst-case scenario, the state can impound your car, and you can face prison time for a maximum of 90 days. But if you do, that Montana plate will pop up. The scam works like this: You hire a Montana law firm to form a corporation or limited liability company (LLC) for you. You only need to stay there to get your ID. 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. While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. Beginning January 2006, the registration of a commercial or heavy vehicle expires 12 months from the month in which it was first registered. Visit https://mt.vitu.com/vehicle to search the vehicle record, or contact the Vehicle Services Bureau with the Vehicle Identification Number and the registered owners name and address. I guess we'll pay an arm and a leg. This page is for personal, non-commercial use. The broader answer to this question is no, registering a vehicle in Montana is not just for the super-rich. Out-of-state Lienholders: If an out-of-state secured party is holding the title for your vehicle, it is still possible to transfer the title to Montana. Yes! Montana Limited Liability Companies. Montana offers two significant benefits. Organ-Donor and Brain-Injury Awareness When you register your vehicle, you may make a donation of $1 or more to organ-donor and traumatic brain-injury education and support programs. A new Montana title is not automatically issued once the secured parties have released their interest. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Can you still write it off under Section 179? You neednt even set foot in the state. Steve Lehto has been practicing law for 23 years, almost exclusively in consumer protection and Michigan lemon law. 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. A fee of $800 is assessed for motorhomes with retail values over $300,000. Your Vehicles Will Be Registered In Montana Which Has No Sales Tax. Our goal is to broaden your understanding of this process and whether or not it is right for you. We see, obviously, a lot of sellersmany do it,and buyers are interested in doing it, Nonnenberg says. MT car registration documents are processed by the Vehicle Services Bureau (VSB), which is overseen by the state Department of Justice (DOJ). A legal loophole lets owners of expensive cars avoid taxes and emissions standards in other states. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana,accordingto the Montana DMV. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Imagine youve bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. Pickup campers are an exceptionthey must be titled, but are not registered. Search for how to register my car in Montana and youll see a dozen sites offering services For example, a 2006 Porsche 911 in 2022 would be 16 years. The only question left is, what will you do? 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. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. If your name not the LLC name is on the title (likely because you bought it before forming your LLC), you'll have to establish a chain of ownership. The single permanent decal for snowmobiles is white and includes the abbreviation PERM. The reasons why Montana vehicle registrations are so popular expand to businesspeople. Can be from a hotel or campground. South Dakota - Also read a lot about this. Non-residents may choose to register by the calendar quarter. When the ownership of a vehicle titled in Montana is transferred, the signatures of all parties shown on the face of the title must sign off on the title and have their signatures notarized. 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. Terms Of Service. The fees below include the 3% Administrative Fee during the transactions: If youre registering permanently, youd be required to pay the following fees: Based on the manufacturers suggested retail price, counties may impose a county option tax. But these numbers havent even scratched the surface of what high-end RVs cost. The decal must be placed in a conspicuous place on the left side of the cowl. Do you plan on insuring your vehicle? The Montana Department of Transportation (MDT) does not issue or control Montana driver licenses, in-state vehicle license plates, or in-state vehicle registration. Individuals employed in Montana can be considered temporary residents, and they are required to register their vehicle with the state. 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