He spent over 13 years in the U.S. Air Force as a crew chief, assigned to the B-1B Lancer, affectionately known as the Bone to those in the community, and the KC-135R Stratotanker. Yeah that's lame. Have you done this? 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. If you decide to go however, you can stay one night, and have your ID and plates in hand. 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. 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. You own the LLC outright. John McCoy is a lifelong car and truck enthusiast and has a strong mechanical background off the road. Class A motorhomes are high-end luxury vehicles that start in the $100k range (often more like $150k) and go up to seven figures. While this ushered in unimaginable wealth, it also changed the fabric of the state. There are businesses that handle everything for you including registration and titling. As it turns out, Barsketis was onto something. Even after the $480 sales tax plus our reasonable fee of $349 (at time of writing), you are at $829, still around $400 less than just the sales tax for that car in California. But dont worry, you are not alone: about ten percent of cars fail. 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.. The buyer will, of course, have to pay the $8 smog transfer fee. Here is the breakdown of the California fee structure associated with your car or truck registration: Transportation Improvement Fee (TIF), which is based on your vehicle value: So, for your very-average priced new car, you can go ahead and tack on an additional $253 in assorted California registration fees. Go. 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's like $17,000 per letter or number. Ouch. Thismeans that someone who spends $500,000 on a new Lamborghini need not pay an additional $36,000 or so in taxes toacquire. So, an industry has sprung up to assist people from other states who want to take advantage of Montanas laws while living elsewhere. The LLC registers and plates the vehicle in Montana. The Montana lawyers who form these LLCsat a cost of around $1,000--admit as much in the small print on their websites. Dirt Legal can help you save time, money, and headaches. You get out of the mandatory smog check. This was not a trailer over the top by any stretch of the imagination, either. What you will receive in this process is an entirely new title from the State of South Dakota, a South Dakota license plate, and South Dakota proof of registration. An eight-year-old car, driving an average of 14,263 miles per year, will have around 114,000 miles on the odometer by year eight, so it is probably going to be due for some repairs soon, especially in exhaust and emissions. And youre sort of poking the bear there with your local state government, as well as the IRS. The answer, in most cases, is yes. 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. Over the few years, dozens of high-value corporations have left California for greener pastures. This loophole is for cutting taxes on million dollar recreational purchases. This is particularly important when buying a newer used vehicle. This isnt even counting localized taxes and fees, which as we saw earlier can be substantial in California. A fee of $800 is assessed for motorhomes with retail values over $300,000. Can be from a hotel or campground. Its very difficult to get insurance. Sfo is still safe and easy to navigate via car or on foot. Yes. Street and off-highway legal fee: $114.50. For cars under four years old, this can be as much as $217. Can anyone legally register their car in Montana? And, I have insurance through USAA (parents both Military). Toby is an attorney on a mission to help investors and business owners keep and grow more. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. Yes! So I do have a voter card there. For somewhere around 1200$ there would be nothing to do from our side except fill out a form. All rights reserved. First, Montana has long been known for its lax approach to driving laws, most memorably the brief period where the interstate had no speed limit. The only downside is that you have to put an ugly Montana plate on your vehicle. 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. Pay (All) Fees. Re: your last statement move somehwere that isnt a shithole. You must be logged in to perform that action. This is not chump change, even for those who can afford it. Prue Leith Used to Deliver Food in a BMW Isetta Microcar, Chase Elliott Explains the Challenge of Adapting to NASCAR's Next Gen Car, Is a Ram 1500 TRX the Ideal Winter Vehicle? This page is for personal, non-commercial use. Out-of-state Montana car registration has never been easier, and as the price of new and used cars continues to skyrocket, it makes sense for all consumers to consider it. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. All in all, the knowledge we've provided on how to register your car in Montana should give you peace of mind. The DMV's mail-in process for vehicle registration has attracted thousands of automobile owners to register their wheels in the state. Youre welcome. You will run afoul of California law regarding residency and vehicle registration, and the "Montana loophole" of creating an LLC there for registration purposes has been clamped down on. 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. Because once you cross over that sunset, you are going to have to deal with the probability that your emissions gear will need work anyway. So you can go ahead and roll another $30-$60 into your registration and operating costs. And as we touched on before, Montanas lack of inspections and emissions testing are strong reasons. This summer, the average age of a car on the road is 12.1 years old, up from 11.9 in 2020. If this worked, wouldnt everyone register their car in Montana? The cool thing about making a military Light Medium Tactical Vehicle (LMTV) off-grid is that it will take you farther than you might even want to go. But car and RV dealers objectedstrongly. Four of the 100 Pagani Huayras ever made were registered in Montana. Thanks for subscribing. Its borderline tax evasion.. What about all those cars in California that drive around without any plates? Since it has an entirely legitimate South Dakota title, you are not beholden to Californias asinine rulings regarding having a valid smog check at the time of sale. Sorry, I dont know the insurance company nameI was sort of interested in the conversationbut I owned my 5th wheel outright. Now is the big one: no emissions inspections or annual state inspections at all. Oh, and by the way, if your car happens to smoke, heaven help you from the Cali Karens: the CARB has a series of hotlines set up for people to narc you. While most people do this in the state they reside in, others find loopholes to register their vehicles in other states to save thousands on taxes, forego local inspection and emissions requirements, and a handful of other reasons. Husband is German citizen. Well, what kind of insurance do you need if you are registering you whip out of state? Our Montana Registration Service is tried and true if you don't want to lift a finger. Not so fast, Slick. It's easier to establish this chain of ownership if you form an LLC in Montana prior to purchasing a vehicle. Many see it as asmart move. 5 Star Registration includes all these fees in our service. The practice is so popular that there are even companies with the sole purpose of facilitating out-of-state vehicle registrations in South Dakota. But heres the absolute truth of the matter: we see in real-time the average age of cars on the road rising. Not surprisingly, Flathead, Granite, and Deer Lodge counties have the largest amount of luxury vehicle registrations, according to data in a vehicle registration primer for the Montana DMV. Are you sure about purchasing in Montana to avoid sales tax? Got an idea for a future Coffee with Carl? It's a strategy that you can agree with or not.. 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. 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. neil e dale likes this. Reddit and its partners use cookies and similar technologies to provide you with a better experience. This is odd for a remote state of only one million residents. Share it with your network! The Montana vehicle registration process has been generating buzz for years; it is nothing new. If you wanna live in California you should abide by the law. Ultimately, it comes down to each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually. Still, many people are willing to risk taking advantage of this loophole in the law. All we need is a title, Manufacturers Certificate of Origin, or bill of sale (if you are financing your car) to process your request. If you purchased the vehicle from a private party, send in the title the private party gave you, with either the LLC name or your name listed. Not surprisingly, other states don't appreciate this tactic because they depend heavily on vehicle registration fees and tax revenue. With this piece of knowledge, you are most certainly going to be dragged into smog check your car every other year for eternity. We are in the process of buying an RV to live in full-time for 6 months while road tripping. Surely there couldn't be that many people from the Mount Rushmore State on vacation at the same time, right? Check your browser settings or contact your network And, yeah, theres meaningful movement., I advise my clients to establish a Montana LLC only when the odds for a sales tax audit are minimal, says Doug Trotter, the owner of Trotter, LLC, a firm that specializes in automotive consulting, acquisition,and financing. Others acquirea mailbox address or property at whichthey can claim Montana residency. This post is part of our Out of State Series explaining the benefits of using our Montana LLC Program to register your vehicles out-of-state. Californias economy would rank as the fifth-largest country globally, ahead of India! Montana has no inspections and no emissions tests required for vehicle registrations. Press question mark to learn the rest of the keyboard shortcuts. But real moneyandethical considerationsare at stake. I don't have a state ID or NC Driver's License. Do you need legal help with vehicle registration using an LLC? Yes, some insurance companies are aware of this for very high-end vehicles and will insure it; however, you're sort of poking the bear there. Got a tip? The same $42,258 sale price will calculate at four percent to $1,690.32 in sales tax, an immediate savings of $2,324.68, equating to nearly 58% less in debt from taxes. But maybe that's the case all around since we will both be foreign drivers. Well, this might not just be your imagination. Off-highway legal fee: $61.25. The following cars are exempt from smog testing in California: Vehicles 8 years old or newer when paying a Smog Abatement Fee, Natural gas vehicles weighing over 14,000 lbs. 3 min read 1. I guess we'll pay an arm and a leg. (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? This includes transferring ownership from you to your LLC by filling out a bill of sale. Especially if you are using a Montana LLC? Montana has no listed minimum tire tread depth. Street legal? Chain of ownership document (original copies). Another subreddit directed me here saying you folks know a lot about registering vehicles as non-residents. By going this route instead of buying it as an out-of-state resident, they avoid hefty sales taxes. This is where you may want to go ahead and consider an out-of-state registration for your car that is aging, particularly if you are getting to that eight-year-old mark where you can no longer pay extortion fees to get out of smog checks. And guess what? 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. Home blog Shows Coffee with Carl Should I Register My Vehicle in Montana? The third certainty in life besides death and taxes is insurance. Montana Registration - California DMV Montana Registration DMV Partner 4122 Monterey Rd, San Jose, CA 95111 1-408-225-2105 Online Services Complete It Now! This website may supply general information about the law but it is for informational purposes only. MDT does handle interstate licensing and registration. Some states like California are poised to lose hundreds of dollars per vehicle if its residents register the vehicle outside of their home state. Also, there are no inspections of any kind in South Dakota. Montana license plates and Montana vehicle registration are not just for the super-rich, although they do benefit significantly. As a resident of that state, youre supposed to register your vehicle there. Create an account to follow your favorite communities and start taking part in conversations. But this is not limited to fast cars and expensive motorhomes. (Progressive already said they'd insure both of us as foreign drivers in N.C.). There is also the misconception that only rich people can get a Montana registration or benefit from having one. But what happens when you cross streams? Hire the top business lawyers and save up to 60% on legal fees. The Drive reached out to the South Dakota Department of Revenue to see how this number has fluctuated since 2018 but did not receive a response at the time of writing. You do not need to spend a night there to get registered. Non-Residents: Under 61-3-701 through 704, MCA non-residents who are gainfully employed in Montana must present their current out-of-state vehicle registration to the county treasurer's office. ), Email: [email protected] Of course we'll pay some ridiculous price for insurancebut we'll still save money in the end compared to renting. To register them elsewhere is to effectively cheat the system that California officials set in place to help reduce air pollution for all. Why? Technically, the practice is legal. Terms Of Service. Please follow the instructions below to enable JavaScript in your browser. First, you'll need to pay a vehicle registration fee. REVENUE HISTORY AND TRENDS Historically, registration fee revenues have remained relatively flat . Once it fails, you have to fix it to pass emissions testing, which is not cheap. Montana Vehicle Registration Fees. 2023 MOTORSPORT NETWORK. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. So, you would be legally obliged to pay a tax . In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. 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