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. So lets run the numbers according to these: The $150,000 light luxury car sales tax at 7.12 percent will cost $10,680. Despite the initial investigation taking place in 2018, the practice is very much so alive and well today. Lets find out. For vehicles that are five to ten years old the registration fee is $87. Many see it as asmart move. First, it does not charge sales tax on personal property. Technology, performance and design delivered to your inbox. Thats correct; no nagging smog checks. The California Air Resources Board is the lead agency for the smog check program in the state. So how much can the affluent benefit from a Montana car registration? That is a pretty lousy deal assuming you still like the car or truck and want to keep it but arent interested in pouring money into fixing emissions equipment, much of which may still be operating but not well enough to pass the test. Montana has no sales tax. This scheme doesnt really pay off if youre buying a used 2004 Camry, but its tempting if you want to buy a six-figure supercar. they can rightfully deny a claim in most states if it is shown that the underlying policy was obtained through fraud, even if the underlying fraud has nothing to do with your claim. Penalties for Vehicles Registered in California Right off the bat, California will shank you for 7.5 percent. Still, proportionately the benefit is the same for everyone: Montana vehicle registration is not just about the wealthy individual saving taxes on his fifth Porsche Roadster. Lehto points out in a blog post for Jalopnik that there are two problems with this: first, you can probably get away with the scheme for a while, but do you really want to risk tax penalties over this? This does not include the California car registration fees, nor does it include the smog check. If you bought it from a private party or dealer, you'll need the title. 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. i know all about tax savings with certain options. Resurrecting an old thread here but thought I should pass it on. I can't figure out if that is needed before the registration can happen or if it's when you want to get your SD driver's license eventually. We'll make it happen for free. There are three registration periods currently offered in Montana: 12-month, 24-month, and permanent. The Montana vehicle registration process has been generating buzz for years; it is nothing new. Search for how to register my car in Montana and youll see a dozen sites offering services to help clients form LLCs. Its no wonder people are leaving this state in droves.! Check out some of our greatest hits below, explore the categories listed on the left-hand side of the page, or head to CR.org for ratings, reviews, and consumer news. But real moneyandethical considerationsare at stake. Hire the top business lawyers and save up to 60% on legal fees. Yes, I know, you are going to argue that you dont own the car - the LLC does. 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 process is that you simply must own an LLC in Montana which provides proof of residence for the vehicle. Youve heard of Skoolies. Check out our South Dakota Registration Service and our Montana LLC Registration Service now to see how you can get on the road for a whole lot less with the help of Dirt Legal. Whatever the case is, people are fleeing this proud state in droves, with more people leaving than are moving in. Every Montana LLC is managed per the clients need. No smog checks before selling your vehicle. There are states (i.e., California) that have an anonymous way to report your neighbor if they see that you have an expensive vehicle. Those days were the best. The registration rate varies in Montana based upon the vehicle's age. There is no getting around this, and with the average age of a car on the road cruising for the past twelve years, you will for sure fail and have to have repairs done at some point. 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. 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. Sometimes dealer cars are used as loaners, but I have no idea what the rules are around that. Montana Registration - California DMV Montana Registration DMV Partner 4122 Monterey Rd, San Jose, CA 95111 1-408-225-2105 Online Services Complete It Now! So, for your very-average priced new car, you can go ahead and tack on an additional $253 in assorted California registration fees. You own the LLC outright. Make, model, and color of the vehicle. California is home to some of the most beautiful landscapes in the world. If you are going to get fleeced, at least its nice to have an accurate figure. But much has changed over the past few decades. Yes. You get out of the mandatory smog check. In 2017, Montana legislators proposed a sales tax of up to 1% on cars and recreational vehicles worth more than $150,000; aimed at out-of-state enthusiasts, House Bill 650 was nicknamed the. They said that lots of expensive cars have Montana plates, and its all part of a tax scheme. Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues. 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.. FWIW, CA is not unique. This is not chump change, even for those who can afford it. Now, you can look into registering your next vehicle in a sales-tax-free state with low licensing fees and no inspection requirements saving you hundreds of thousands in the long run. Others acquirea mailbox address or property at whichthey can claim Montana residency. Ouch. Send it to Carl at cwc@andersonadvisors.com. In addition, the smog check requirements linger; even if you live in remote and rural Northern California with practically no population density, you are still liable for all of the exact draconian smog check requirements. Are state sales taxes and use taxes too high? Submit your completed vehicle registration packet. But then, after that, it will hurt a lot. 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. Another subreddit directed me here saying you folks know a lot about registering vehicles as non-residents. I read an article recently that Massachusetts conducted police patrols in RV parks flagging folks with Montana plates. . What if you could avoid that, and avoid annual car inspections, just by filling out a little bit of paperwork? Its the rest of us, who have the misfortune to live in places that arent Montana, who might find this scheme tempting. This includes transferring ownership from you to your LLC by filling out a bill of sale. Okay, so back to the exotic cars. The scam works like this: You hire a Montana law firm to form a corporation or limited liability company (LLC) for you. Street and off-highway legal fee: $114.50. Their cost of living is nuts, median housing costs are bonkers, and their car taxes and registration are ridiculous. You'll simply need to produce the certificate of origin from the manufacturer. Please follow the instructions below to enable JavaScript in your browser. However, with the recent rapid increase in average vehicle prices, with new car prices rocketing toward an average of $50,000, the demand for car registration in a state with no sales tax promise only to go up. If it's anything like California all of those things can be handled automatically by a third party for a small fee. But it does not end there. 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. That said, when the Rapid City Journal reached out to the department in 2018, it "estimated" an annual take of nearly $7 million. With this piece of knowledge, you are most certainly going to be dragged into smog check your car every other year for eternity. In California, by contrast, owners must ensure that all vehicles made after 1975 meet emissions standards and can pass safetyinspections. Its a riska cheap thrill, echoes Zuckerman, the LA lawyer. 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. 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. 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. Californias economy would rank as the fifth-largest country globally, ahead of India! As noted, this maneuver is probably illegal in your state. What this means for you is that, before you can do anything else, you need to pay that cheddar and fix your whip. It is particularly beneficial for anyone living in heavily taxed states, not just the super-rich. Your bill of sale, title applications, and anything else regarding the title work has to be original, although it's OK if your LLC paperwork is a copy. Are those even registered at all? Companies help facilitate it. If it mysteriously went from passing to failing, you guessed it; you have to get it fixed and pass the smog check before you can sell it. You can choose Dirt Legals Vehicle Registration Service. Fax: 702.664.0545, Office Hours Well, what kind of insurance do you need if you are registering you whip out of state? Some states are taking measures to crack down on residents who set up shell corporations in other states, including suing for tax evasion. Thats the premise of companies that offer to help you incorporate in Montana, have your corporation own the vehicle, and pay no taxes. Why does it have a Montana plate?. First, you'll need to pay a vehicle registration fee. Founded in 2005, Consumerist is an independent source of consumer news and information published by Consumer Reports. 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. 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. $25,000-$34,999: $110. 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. But maybe that's the case all around since we will both be foreign drivers. No sales tax.. If you do not receive a billing notice approximately 60 days before your vehicle's registration expires, please call us at 1-800-777-0133 to find out what your fees are. What about all those cars in California that drive around without any plates? Contact the MDT Motor Carrier Services Division at 406-444-6130 for interstate licensing and registration questions. A Ford Transit starts at $35,925. I'm not military so it would be the latter. Thread starter LSUFan69; Start date Aug 30, 2022; Prev. Not break the law because you dont agree with it. Re: your last statement move somehwere that isnt a shithole. As of 2018, there were 58,334 out-of-state vehicles registered with the Department of Revenue's Motor Vehicle division which represent nearly five percent of all 1.2 million vehicles currently titled in South Dakota. Got an idea for a future Coffee with Carl? But I am the first to point out that 1.) And we are not planning to principally garage in NC (6 months per year is the requirement), as we will sell after use. ), I like paved roads and functional infrastructure, tweeted Ritholz. Although, of course, they benefit from it in more staggering monetary amounts. Chain of ownership document (original copies). Now if I got pulled for speeding maybe they would question me. In other states, not just the super-rich 7.12 percent will cost $ 10,680 high. That arent Montana, who might find this scheme tempting get fleeced, least... 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