Avoiding Sales Tax

[rwsplace]

I purchased a motor home in Nevada last year and registered it in Montana (no sales tax).   I am contemplating moving to Florida this year.   I was told that if you own motor home for longer than six months Florida will not charge sales tax on the vehicle.

Does anyone have any knowledge of this?  If not I guess I will find out when I call DMV.  

Thanks for your feedback.

 

 

[manholt]

New/used is 4%.  Brought in used, don''t know!  Annual tags, around $64.  Good Luck!

[elkhartjim]

As long as you were a legal resident of Montana and not just using a shell address there probably won't be a problem. If you were not a legal resident in Montana then you may be opening a very expensive can of worms when you try to register it in Florida. 

[txiceman]

You need to contact a tax accountant and not depend on 'Free" advise from the internet.

Ken

[manholt]

Jim S.  I think Ken, is talking about us! 

[wayne77590]

There have been RV forum threads dedicated to part timers who want to beat the system, as Jim stated, and register in States without taxes, and other items. Many states are cracking down on those types of activities. Some states will even compute the difference in the tax rates between states and if you come up short in the new state you may end up paying the difference.

Best advice was what you gave yourself. Call Fl and ask.

[kaypsmith]

Perhaps this will help answer your question. http://www.sjctax.us/OutOfStateReg.aspx 

6% is the magic number on sales tax collected on any vehicle that becomes titled in Florida, and to be registered in Florida, it must be titled in Florida. I just went through this two years ago while purchasing a new car in Florida, my state Alabama requires 3.5%, Florida added 2.5% for their part, seems crooked but that is the law there.

[rwsplace]

Thanks all for the feedback.

Pinellas County Tax Collector website (where I plan to live) states that if you are out of state and have owned the vehicle more than six months no sales tax collected.  Of course it does not say if that includes no sales tax states like Montana.

We'll see.

[kaypsmith]

The website that I linked to is StJohn county Fl., the whole state is under the same state law, and it does appear that if your coach was titled in the country (USA) and titled in your name for more than six months regardless of whether you paid sales tax or not, you will not need to pay any additional sales tax if Florida.

"If the vehicle is acquired from out of state, 6% Sales Tax is due on the purchase price of the vehicle. If the vehicle was titled in the applicant's name less than 6 months prior to being titled in the state of Florida proof of the purchase price and the amount of sales tax that was paid must be submitted. If the amount paid was less than 6% Florida will collect the difference. If applicant’s residency is outside of St. Johns County there may be an additional Discretionary Tax. If the vehicle was titled in the applicants name for more than 6 months prior to taking title in Florida, no sales tax is due. "

There appears to be a loophole for you!

[wayne77590]

That's what I said, or close to it.

[manholt]

Run, don't walk, get it done.  They might change the law.  Or close the loop hole!

[elkhartjim]

When an individual evades paying sales tax by titling the vehicle in Montana, is the vehicle titled in the individuals name or a shell LLC name? 

Like Wayne wrote earlier, several states are making efforts to crack down on these tax cheats and with the financial penalties charged it gets rather expensive. 

[Storage]

On 3/3/2019 at 4:50 AM, kaypsmith said:

The website that I linked to is StJohn county Fl., the whole state is under the same state law, and it does appear that if your coach was titled in the country (USA) and titled in your name for more than six months regardless of whether you paid sales tax or not, you will not need to pay any additional sales tax if Florida.

"If the vehicle is acquired from out of state, 6% Sales Tax is due on the purchase price of the vehicle. If the vehicle was titled in the applicant's name less than 6 months prior to being titled in the state of Florida proof of the purchase price and the amount of sales tax that was paid must be submitted. If the amount paid was less than 6% Florida will collect the difference. If applicant’s residency is outside of St. Johns County there may be an additional Discretionary Tax. If the vehicle was titled in the applicants name for more than 6 months prior to taking title in Florida, no sales tax is due. "

There appears to be a loophole for you!

 

 

how to solve the issue of taxes?

[richard5933]

4 hours ago, Storage said:

how to solve the issue of taxes?

What exactly are you asking when you say "solve"?

If you're looking to minimize your legal obligation to pay taxes, the best thing to do is contact a good tax accountant. Nothing you learn here will do much to protect you should your actions ever be challenged.

One important item you left out of this is how you registered the RV in Montana - under your name or an LLC? That one fact will likely make a huge difference.

[obiwan_canoli]

Bought mine in Oregon, titled to LLC in Montana, I'm a California resident. Was informed the coach should be stored in Montana, and not brought in to California (permanently) for one year. No sales tax, minimal annual registration fees. Also, there's an increased registration fee for rigs over $300K.

Edited June 29, 2021 by obiwan_canoli

[manholt]

I have not bothered to look into this, but have been told by a person we know from Montana, that they now must pay a Luxury tax on RV's!  That also applies to LLC's that own a second home and or RV's, boats etc.

I personally, don't like looking over my shoulder wondering when I'll be pulled over and checked for Lic, plates and residence....we have horror stories on this Forum!  

[rayin]

A tax attorney knows how to advise you, hire one! There two different topics being discussed here, legal tax avoidance and tax evasion., your tax history comes into play for either.

[jleamont]

On 6/29/2021 at 2:19 PM, rayin said:

A tax attorney knows how to advise you, hire one! There two different topics being discussed here, legal tax avoidance and tax evasion., your tax history comes into play for either.

And they only know the tax portion, not the DOT and licensing portion and problems this creates. Might want to hire a few attorneys for each of the areas and keep them on a retainer.

Edited July 1, 2021 by jleamont

[elkhartjim]

I often wonder if theses are the same people that cheat on their income taxes. 

[manholt]

Joe, spot on...LMAO 🤣!

Jim S.  Probably and everything else!  Those that can afford a $400K+ toy are the ones that squawk the most for the extra dime & brag about how they avoided paying that dime! 

[Jcapps]

On 6/28/2021 at 11:35 PM, obiwan_canoli said:

Bought mine in Oregon, titled to LLC in Montana, I'm a California resident. Was informed the coach should be stored in Montana, and not brought in to California (permanently) for one year. No sales tax, minimal annual registration fees. Also, there's an increased registration fee for rigs over $300K.

You also have to have legitimate receipts for where you "stayed", fuel, maintenance, etc. Its not about just staying out of CA for a year. You have to show real usage.

[manholt]

Jcapps.  Welcome to the Forum and Happy 4th of July!

Did not know about the usage!