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? Are License Plate Covers Legal In Montana? - PartyShopMaine There are some exceptions. He teaches a popular bi-weekly webinar, Tax Tuesday, where business owners and investors can ask any tax question and get answers LIVE on-air. The only downside is that you have to put an ugly Montana plate on your vehicle. Well, here at Dirt Legal, we always strive to stay on top of this information and get the best information out to y'all. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. We feel like youve earned a break once youve spent over a hundred grand on one of the most collectible Audis on the planet. And, yeah, theres meaningful movement.. Its borderline tax evasion., Its a risk a cheap thrill, echoes Zuckerman, the LA lawyer. On the other hand, if you live in the land of ten percent tax rates, that will be fifty grand in taxes! But real moneyandethical considerationsare at stake. Most McLaren P1 owners probably did not earn enough money to buy a McLaren P1 by paying $10,000 per inch of anything. 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. Botello noted that the figure does not reflect back registration and license fees paid voluntarily by vehicle owners targeted in the investigations. Rural, comfortable, relaxed Montana, where theres no sales tax, and registering that very same McLaren P1 costs you something like $200 in registration fees. Along Californias borders, the percentage of out-of-state and out-of-country vehicles, the study said, reached more than 10%. One of the most common questions when registering a vehicle under an LLC in Montana is about vehicle inspections. In the end, I dont recommend anyone doing this. You are now being redirected to the BCE.ca website (Bell Canada Enterprises), where you can view our Accessibility plan,and submit your feedback using our Accessibility webform. She also taught legal writing at the University of Houston Law School. A friend of mine, a resident from Oregon driving a Porsche with Oregon plates was pulled over by the CHP. Why Form an LLC in Montana? These Are the Benefits - Dirt Legal The only downside is that you have to put an ugly Montana plate on your vehicle. 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. Interestingly, even the websites of the companies that promote this scam . Agreement. In a recent article, I quoted a new fifth-wheel trailer at around $109,000 MSRP.. This website may supply general information about the law but it is for informational purposes only. All rights reserved. In fact, it would cost more than five times as much: $666.60 in California versus $129.50 in Oregon. Check out our Montana Vehicle Registration Service to see how our team can do the hard work for you, or read the articles below to learn more about the process. Montana has no sales or use tax and no vehicle inspections. ), I like paved roads and functional infrastructure, tweeted Ritholz. The big question is this: is the Montana registration process limited to just cars? But heres a catch. "My car was stolen and the insurance company won't pay me." Lets find out! 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. Get up to speed with our Essential California newsletter, sent six days a week. Exotic Cars and Montana Plates | The Truth About Cars CA Its diamond blue metallic paint a hue so subtle that at some angles, it looked lavender and throaty 3.3-liter flat-six engine were enough to bring $141,000 and more than 120 comments on its listing. These Are the 7 Highest-Mileage Cars Listed on Autotrader, The best cars and best deals delivered to your inbox. But the car or truck has to meet the states emission standards. RVs are a highly desirable item to register in Montana because they are high-ticket items. CA Our Montana Registration Service is tried and true if you dont want to lift a finger. They know exactly how it works and what to do. The range of services varies by kiosk location. It was also reported that four of the 100 Pagani Huayras (each valued at $2.5 . Jeanne Wright responds in this column to automotive questions of general interest. All the big exotic-car insurance companies such as Hagerty and American Modern have no problem with the Montana thing. This was not a trailer over the top by any stretch of the imagination, either. Why so many supercars have Montana license plates - MSN There is a lot of talk about using an LLC in the Montana process and the legality of the process. I read an article recently that Massachusetts conducted police patrols in RV parks flagging folks with Montana plates. To register them elsewhere is to effectively cheat the system that California officials set in place to help reduce air pollution for all. False statements which form the basis of the denial letter you will receive shortly in the mail. The Montana vehicle registration process has been generating buzz for years; it is nothing new. Where 10 years agothe sight of a Ford GT sporting a blue Montana plate would be rare, adriveto the popular Friday morning car gatherings at Newcombs Ranch outsideLA reveals that even relativelypedestrian 911s carryMontana plates. My car storage guy just told me that another client of his who has a GT3 Touring with Montana plates has a problem. But hey - you saved thousands of dollars! JalopRecs | 'Tommy Boy' Is One of the Best Car Comedies of the '90s, Rainn Wilson is Tired of Tesla and its Yoke, Racing Tech | How F1 Sanctions Wind Tunnel Testing for Close Racing. CA To start, its important to explain the biggest reason why so many exotic cars have Montana license plates: Montana has no sales tax. They were listed at $2.5 million each. And California has a program through which you can anonymously turn in your neighbors who havent registered their vehicles in California. We'll make it happen for free, How to Insure a Vehicle Owned by a Montana LLC. I don't get it, want to live in CA, then obey the laws of CA. Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. Here is our list of the best new cars for 2022 (presented in alphabetical order by manufacturer). The people who have Montana license plates are like the people who put the fake handicap badges in their car, says Paul Zuckerman, an attorney in Los Angeles and avid car collector. Its clear why people register vehicles in Montana. Gallatin County collects a 0.5 percent local option vehicle . 179 Branham Lane, You can schedule online or by calling 888.871.8535. Subscribe to our News and Updates to stay in the loop and on the road! A new vehicle is any vehicle that has less than 7,500 miles on the odometer at the time it is purchased or acquired, according to the DMV. So, thats my final word on this. But if you do, that Montana plate will pop up. Just write down the information and get it to us, we will take it from there, said California Highway Patrol Officer David Singer. Call it what you want, if it's registered legit and you have residence or a business in that state your good. The broader answer to this question is no, registering a vehicle in Montana is not just for the super-rich. Montana has no emissions tests, in which your car must prove it isnt polluting. . Why so many supercars have Montana license plates - Autoblog Six of Montana's 56 counties do not collect a local option vehicle tax: Big Horn, Deer Lodge, Flathead, Granite, Phillips and Richland. 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. Businesses authorized by the DMV to handle certain registration services, often with much shorter wait times (if any!). 95111, aaa K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. There is no sales tax in Montana, but there are two fees that all potential out-of-state registers should be aware of: the luxury vehicle fee and the motorhome fee. Part of MOTORSPORT NETWORK. San Jose, If the car/truck/van is legally owned by an LLC registered in Wyoming, it matters not where the beneficial user resides. Why Is Everyone Registering Their Cars in Montana? - Dirt Legal 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. #1 Sep 7, 2019. 95122, 1641 S 10th St, The MT MVD charges fees for new and replacement license plates: New standard license plate: $10. Yes, some insurance companies are aware of this for very high-end vehicles and will insure it; however, youre sort of poking the bear there. But emissions, inspection etc BS. I say this because virtually every high-dollar exotic car you see during Monterey Car Week has a Montana license plate. We run BAT shipping, so we see where people are moving all the cars around. The basic concept of the process is known to many, but the specifics are a little harder to nail down. Registration fees following the first fee are $14.50-$32.50. Member use only, 1779 E Capitol Express Way, 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. And now, the California Highway Patrol (CHP) is asking residents to r eport if they . Zilch. Catch more great investing & business tips on our YouTube channel, Build your customized strategy with a complimentary Strategy Session today, How to Calculate Cap Rates for Rental Real Estate, How to Start a Business Entity in Pennsylvania. Notification icon Additional fees may be applied by this partner. As the attorney in this relationship, I have to be the one to tell you the bad news, and its twofold bad news. You may also have noticed quite a few South Dakota license plates, which is not a coincidence. Toby is an attorney on a mission to help investors and business owners keep and grow more. So think about this: if you live in a state with sales tax in the ballpark of six percent and purchase a brand new Jayco Embark (MSRP $384,150), your tax burden will be around $23,050. I know of Californians who live and work in the state but have cars and motor homes that are licensed in Nevada and Montana. 12:00 a.m. Sept. 5, 2003: For The Record Los Angeles Times Friday September 05, 2003 Home Edition Main News Part A Page 2 National Desk 1 inches; 59 words Type of Material: Correction Vehicle fees -- The Your Wheels column in Wednesdays Highway 1 about California residents licensing their cars in other states incorrectly stated that it would cost more than twice as much yearly to register a vehicle in California than in Oregon. However, as we will see, this may not be the wisest decision. Companies help facilitate it. Those days were the best. Replacement : License plate with a new number: $10.30. Your vehicles will be registered in Montana which has no sales tax. But there are others who intentionally keep their vehicle registered in another state to save money on taxes and fees. ), Office Hours Anyway, if you lived in Montana, the same Veyron would cost virtually nothing to register. Not so fast, Slick. Theyll remotely handle the registration titling and fees. Why Do So Many Supercars Have Montana License Plates? - PowerNation Dont poke the bear! Out-of-state car buyers use Montana LLC's to evade taxes Thats a whole truck! And so they might report you. Why does it have a Montana plate?. I get the sense that you can get a license plate for anything in Montana, including a tape dispenser. Unless and until it becomes outright illegal, the decision to title something like a $2.4 million Ferrari F40 in Montana falls to the individual car owner making personalethical choices. No, your car cannot be registered in one state and insured in another. In Imperial County alone, the percentage of out-of-country vehicles was 19.95%. Monday - Friday 8am - 5pm PST. 95121, 2222 Senter Rd, Most states would like that information. Still, the effect is the same across the board. Some may simply be unaware of the states regulations, and some may fall under the states exceptions for military members who claim residency in another state. RVs are a highly desirable item to register in Montana because they are high-ticket items. E-mail: jeanrite@aol.com. I just wanted to show you why some people do this since it was a question that comes up from time to time. Its comical., Randy Nonnenberg, the founder of BAT, is more circumspect, although hes quick to say he has nopersonal vehicles bearingMontana plates. And, yeah, there's meaningful movement.". So you have to be very careful. The statewide survey, prepared for the state Air Resources Board, was designed to profile vehicles in the state to determine how they relate to auto emission estimates. Its not a red flag; its something to note, he says. 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. There are a few extra steps, but they are worth it in the long run to secure the kind of savings and benefits on offer. Ultimately, it comes down to each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually. CA Maybe to Montana? Thats not the point. The web pages currently in English on the DMV website are the official and accurate source for the program information and services the DMV provides. 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. CA Ultimately, it comes down to each car ownerspersonal appetite for risk, becausesuch loopholes tend to beclosed eventually. But these numbers havent even scratched the surface of what high-end RVs cost. (And you will be unlikely to locate an insurance company in California that will insure an out-of-state vehicle, or an insurance company in Montana that will provide insurance to somebody from California.) Zilch. The same four percent tax on a $300,000 motorhome rings up to a stout $12,000. CA A $300-million (minimum) gondola to Dodger Stadium? No sales tax.. And as we touched on before, Montanas lack of inspections and emissions testing are strong reasons. As of August 2021,Big Horn, Deer Lodge, Flathead, Granite, Phillips, and Richland countieslackedthat local option tax. But car and RV dealers objected strongly. If youre going to use this strategy of buying your vehicle in Montana but residing somewhere else, most online law firms will tell you to set up a Montana LLC and then register your vehicle in the state of Montana. You can do the paperwork yourself for about $150 / year. Kiosks are self-serve stations where you can complete certain registration services and request driver or vehicle records. cld8 4 yr. ago. Consequently, the CHP has developed a program called CHEATERSCalifornians Help Eliminate All of the Evasive Registration Scofflawsthat encourages Californians to help their state and local law enforcement combat illegal out-of-state registrations. The 1987 Porsche 911 that sold on Bring a Trailer on July 26 was a coupe so dreamy that late founder Ferdinand Porsche would be sorry to have missed it. How can these people get away with this? Are LLCs Legal in Montana? Dirt Legal . No compulsory annual safety inspections. Why so many supercars in California have Montana license plates Exception No. The vehicle code is clear that these individuals should have their cars licensed in California, which needs all the tax revenue it can get. Nada. 5304 Monterey Rd Suite A, Technically, the practice is legal. Many see it as a smart move. 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. They were listed at $2.5 million each. CA. residents REG. + LIC in Montana? | FerrariChat Additional fees may be applied by this partner. According to AARP, the national average state and local sales tax comes in at 7.12 percent. Supposedly several Lamborghinis' and McLarens were impounded being accused of CA state tax evasion. Gotta pay for it somehow.. You might be passing for the first year or two, and it still might be a reasonably expensive used vehicle, and you end up flunking the smog check while you are still making payments, and you had a big tax bill laid on you when you bought it. (You must log in or sign up to post here. Many collectible cars are denoted as gross polluters in the state of California and do not pass emissions tests. Apply for a license or ID card (including REAL ID). 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. Interestingly, California is by far the largest in population, roughly thirty-nine times the population of Montana. Use caution when using a public computer or device. When I was in southern California this weekend, I was watching the news where a big F350 was stolen. It's a strategy that you can agree with or not.. You may want to think twice about keeping out-of-state plates on a car in California. Why So Many Supercars Have Montana License Plates - BNN (Alaska, Delaware, New Hampshire, and Oregon are the other states that require no sales tax.) 95112. Although you might be pretty excited that youve just saved thousands of dollars in taxes, your neighbors might see your Montana plates and get a little jealous.