According to Zip Recruiter, the average salary for Los Angeles is $68,118, a paltry 2.18% over the national average, whereas the average cost of a house is $915,000, 144% over the national average of $374,900. That said, when the Rapid City Journal reached out to the department in 2018, it "estimated" an annual take of nearly $7 million. For vehicles over 11 years old, the fee is only $28. So, an industry has sprung up to assist people from other states who want to take advantage of Montanas laws while living elsewhere. So how much can the affluent benefit from a Montana car registration? But what happens when you cross streams? Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. All rights reserved. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. So what exactly makes California so offensive to the palate that tens of thousands are walking away from it? Your exotic or expensive car or RV is purchased by your LLC. We'll make it happen for free. The registration rate varies in Montana based upon the vehicle's age. It didn't take long before he shared his secret with the world, even though he couldn't point out Clay County on a map. Imagine you've bought a 2022 Corvette Stingray for $70,000 in Florida, where the sales tax rate is 6%. I have no sympathy for the State of California, as in the state government itself, but a significant amount to the blue-collar workers who have been left in the lurch for decades. Thats the premise of companies that offer to help you incorporate in Montana, have your corporation own the vehicle, and pay no taxes. Street and off-highway legal fee: $114.50. I was thinking, Huh, Montana. No compulsory annual safety inspections. We aren't so concerned about those costs when you consider that renting an RV for this duration would be around 40k. He got his B visa and we will arrive in the U.S. on March 5 in North Carolina. Fax: 702.664.0545, Office Hours It is no coincidence that the states with the highest car taxes also have the strictest inspections and emissions testing, which Montana doesnt have. Catch more great investing & business tips on our YouTube channel, Build your customized strategy with a complimentary Strategy Session today, How to Start a Business Entity in Pennsylvania, How to Start Stock Investing Through Infinity Investing Part 3. It looks like portions of our site are being blocked! There are a couple problems which might crop up if you give it a try. Theyre scum., I cant believe so many customers have gotten away with this grift, says Alex Ross, who owns Sharkwerks, a high-performance automotive tuning shop in Fremont, Calif. No matter where in California, at every cars and coffee [gathering], look for the Montana plates. Why does it have a Montana plate?. In recent years, Montana has made a name as a hub for exotic cars, although very few of them reside there. Vehicles between five and ten model years: $87. If you need to register a vehicle for use on California roadways, waterways, or trailways, you've come to the right place to find out all you need to know. All rights reserved. But the interest was traditionally by the affluent looking for ways to keep costs down on high-end sports cars, or it was expensive motorhomes looking for the same. (Californias sales tax, for instance, is 7.25%.) (Progressive already said they'd insure both of us as foreign drivers in N.C.). 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. 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. 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. In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. Ouch. Even in a very modest state with a four percent sales tax, the tax bill for a $150,000 light luxury vehicle is still $6,000. When you sign the bill, complete the buyer section the same as you would a Montana title application. The same logic applies to registration in other states of convenience as well. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. Can Dirt Legals services work for you? You can choose Dirt Legals Vehicle Registration Service. Anyone from any state can register their car in Montana, although it is not quite as simple as some of our other out-of-state registration programs. But if you do, that Montana plate will pop up. 9.14.15 4:48 PM EDT By Laura Northrup@lnorthrup, big lie country montana car registration sales tax use tax personal property tax. But heres the absolute truth of the matter: we see in real-time the average age of cars on the road rising. This will allow you to save a ton of money in sales tax, especially if you purchase a very expensive vehicle. Technology, performance and design delivered to your inbox. Street legal? This does not include the California car registration fees, nor does it include the smog check. Im sure lots of people had the same questions that many of the TV viewers did: Why would somebody register a vehicle in Montana but not reside there? Most states would like that information. This is particularly important when buying a newer used vehicle. For example, the Montana LLC program we offer is an LLC from Montana providing the required residency for registration there. It really is that simple. We focus on setting up LLC's and how they can save you money. Though we find it hard to believe, the report claims that there isn't an exact figure that shows how much extra money the South Dakota Department of Revenue has earned from this practice, as the registration fee varies based on vehicle age, type, and weight class. If the latter, maybe it's no issue since we'd be selling and leaving the country". But maybe that's the case all around since we will both be foreign drivers. One of the most common questions when registering a vehicle under an LLC in Montana is about vehicle inspections. If you decide to go however, you can stay one night, and have your ID and plates in hand. 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. There is also the misconception that only rich people can get a Montana registration or benefit from having one. Was this document helpful? Gotta pay for it somehow.. The second highest, Clay County, had just 7,241 registrations during the same time; however, that represented more than one-fourth of all vehicles registered in the county. 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. The overall cost of living in LA is 41.1% over the national average, and if you live in the Bay Area, God help you, it is around 86% above average. No smog checks before selling your vehicle. You get out of the mandatory smog check. So, I'd appreciate advice on which makes the most sense for us from a legal standpoint. tighter emissions standards enactedinConnecticut, requirements to significantly lower toxic air pollution, automakers including BMW, Volkswagen, and Ford. There are states (i.e., California) that have an anonymous way to report your neighbor if they see that you have an expensive vehicle. Typically, they register in a Montana county that doesn't have a local-option tax. Do you plan on insuring your vehicle? We will renew your Montana MVD registration the same day you place an order and overnight your new registration papers and stickers the same day. Some states like California are poised to lose hundreds of dollars per vehicle if its residents register the vehicle outside of their home state. RVs are a highly desirable item to register in Montana because they are high-ticket items. Include the bill of sale as well. The problem, Michigan lemon law attorney Steve Lehto explains: the state where you actually live can always catch up with you. The Montana Scheme According to Montana's Department of Motor Vehicles, you need no state driver's license to title and register your vehicle in Montana, but you must prove residency in. Food for thought. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. Maybe somebody in the position to buy a Lambo in the first place is better poised to shell out almost fifty grand for tax, but that doesnt mean that dropping that kind of cash wont sting just a little even if you are. Some states are willing to use extreme measures to secure tax revenue on pricey vehicles that their residents purchase out of state. neil e dale likes this. Enjoy! This will include the following: You'll submit your paperwork to the DMV/treasurer's office of the county where your registered agent is. Do you need legal help with vehicle registration using an LLC? Depending on the circles you travel in, Id be willing to bet that you probably see many Montana plates if you frequent RV parks or car meets. If you cant afford the taxes to register your supercar in the state where you live, perhaps you cant afford the car, says Barry Ritholtz, a proud vintage Corvette and Defender owner and chairman of Ritholtz Wealth Management LLC. These two fees are an absolute bargain compared to paying sales tax on these vehicles in other states. Of course we'll pay some ridiculous price for insurancebut we'll still save money in the end compared to renting. Sorry, I dont know the insurance company nameI was sort of interested in the conversationbut I owned my 5th wheel outright. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. The first step you must take after buying a new-to-you car in the United States is registering it with your local department of motor vehicles. ), Email: info@andersonadvisors.com We run BAT shipping, so we see where people are moving all the cars around. You may have to BUY your RV in Montana, to make it easier. Both my husband and I have a German and International Driver's license. The maximum vehicle size in Montana is 102 inches wide, 14 feet tall, and 55 feet long for a single vehicle. 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