The debate about registering a car in Montana can seem like a lot of fuss overa piece of metal. Write to Your Wheels, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012. I found myself in Salt Lake City and saw the same thing. Subject to certain age restrictions, someone from out of state can legally drive in California as long as:. If the insurance company finds out what you are up to, they can deny your claim because you have a Montana-registered vehicle while driving 100% in California. Montana license plate. This will allow you to save a ton of money in sales tax, especially if you purchase a very expensive vehicle. On the other end of the spectrum, you have Montana. Class A motorhomes are high-end luxury vehicles that start in the $100k range (often more like $150k) and go up to seven figures. Maybe to Montana? Renew, reinstate, or apply for a motor carrier permit. Toby is an attorney on a mission to help investors and business owners keep and grow more. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. You can save a bundle of cash and ditch those smog checks, inspections, and possibly renewals. Then your license plates will blend right in. You may also have noticed quite a few South Dakota license plates, which is not a coincidence. DMV Partner K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. Weve got plenty of those. 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. 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. install the Google Toolbar (opens in new window) . Fun & Games: Whos Really Winning the Autonomous Car Race? Its wild to think about, but there are plenty of cars that easily MSRP over half a million dollars, and if you are in a state that collects, say, seven percent in sales tax, you are looking at a staggering tax bill of $35,000 or more. It would be preferable to have a business connection in Montana if you want this to make sense. This translation application tool is provided for purposes of information and convenience only. 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. State of California Department of Motor Vehicles. Montana offers two significant benefits. Thats correct; no nagging smog checks. Here Are the Cars That Have the Vanity Plate FUN Across the Country But withtighter emissions standards enactedinConnecticuton July 22, Colorado legislators slated next month to discuss requirements to significantly lower toxic air pollution by 2027, and a handful of automakers including BMW, Volkswagen, and Ford recently backing the USEnvironmental Protection Agencysdecision to restore Californias ability to set its own strict tailpipe and zero-emission vehicle standards, debate is heating up over how far to go to avoid restrictions. 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. A friend of mine, a resident from Oregon driving a Porsche with Oregon plates was pulled over by the CHP. In many places, this amount would buy you a condominium that includes an assigned parking spot and a community swimming pool with at least nine adult-only swimming hours every week. Just write down the information and get it to us, we will take it from there, said California Highway Patrol Officer David Singer. At the time, the Bozeman Daily Chronicle estimated that the proposed tax could raise $2.5 million annually for the state. 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. No, your car cannot be registered in one state and insured in another. And indeed, some people have faced criminal penalties for doing the Montana thing penalties that can include back taxes, fines and maybe even jail time. The same is true for registering a privately owned automobile in the name of a private trust, LLC, PUA/TUA, 501/508 or other entity. And California has a program through which you can anonymously turn in your neighbors who havent registered their vehicles in California. It is no coincidence that the states with the highest car taxes also have the strictest inspections and emissions testing, which Montana doesnt have. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, https://www.chp.ca.gov/notify-chp/cheaters-out-of-state-(out-of-state-registration-violators), (You must log in or sign up to post here. Ultimately, an $825 luxury fee was added to ordinary registration costs for vehicles worth more than $150,000. Zip. Some startan LLC in the state, which gets them a mailing address and residencystatus of sorts. 95121, 2459 Alvin Ave, 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. Speak with an Anderson Professional Advisor to get your FREE Tax Plan Strategy Session. If you have recently moved, you . My car storage guy just told me that another client of his who has a GT3 Touring with Montana plates has a problem. 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. European Union Sets Scary Precedent for Autonomous Cars. If the vehicle being brought to California is considered used -- meaning it has more than 7,500 miles on it when purchased -- the owner can get it registered with the DMV. And youre sort of poking the bear there with your local state government, as well as the IRS. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. Heres Why So Many Exotic Cars Have Montana License Plates, By using But withtighter emissions standards enactedinConnecticuton July 22, Colorado legislators slated next month to discuss requirements to significantly lower toxic air pollution by 2027, and a handful of automakers including BMW, Volkswagen, and Ford recently 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. . Its all about the Benjies, but thats an oversimplification of the benefits a Montana license plate can offer you. Tagged: Montana, Montana Registration, Montana LLC, outofstateseries. ), I like paved roads and functional infrastructure, tweeted Ritholz. #1 Sep 7, 2019. Member use only, 1779 E Capitol Express Way, Suppose you have a vehicle registered under an LLC already. From 2011-2016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. 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. ), Office Hours Driving around California, you may notice a lot of out-of-state license plates on the roads. Let your Montana LLC buy it! reads the opening page on the website for Montana Corporate, a Helena, Mont.-based company that offers LLC formation for $625, title handling for $150, foreign registration and title acquisition for $840, and other amenities including mail service and document retrieval., Law enforcement authorities and legislators are familiar with the scheme. Lets find out! I don't get it, want to live in CA, then obey the laws of CA. info-icon The information you requested is not available at this time, please check back again soon. Theres no guarantee that therelative leeway car enthusiastshave regarding Montana titles will last. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. Why Is Everyone Registering Their Cars in Montana? Tax Attorneys, CPAs & EAs who specialize in working with businesses and investors. San Jose, Kiosks are self-serve stations where you can complete certain registration services and request driver or vehicle records. 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. Essentially, it works like this: You form an LLC business in Montana. She felt paralyzed: L.A. woman sues Big Surs Esalen Institute for alleged use of video with N-word in class, Dramatic video from rescue of driver who plunged more than 500 feet off Bay Area cliff. (Californias sales tax, for instance, is 7.25%.) To start, its important to explain the biggest reason why so many exotic cars have Montana license plates: Montana has no sales tax. The sleek design is the hottest-selling optional plate in the state, and more than 1,200 have already been issued in September, about 10 times the next most popular plate, excluding the free designs. In 2021, fully 10% of all McLaren P1s ever made cars worth well over $1 million apiece were registered in Montana, according to the Montana DMV. I am not the fun police so I will tell you that in many states, you can probably do the foregoing and skate for quite a while without getting caught. And it has attractedplenty ofdetractors. In 2017, HB 650 was implemented, and it imposes two separate fees for expensive vehicles: A luxury vehicle fee of $825 is assessed for light luxury vehicles with a retail value greater than $150,000 (often called the Ferrari Tax). CA "Don't California my Montana," implies Kalispell, Montanan. "Oh, that's interesting," I thought. Many see it as a smart move. 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 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. No compulsory annual safety inspections. In 2021, fully 10% of all McLaren P1s ever madecars worth well over $1 million apiecewere registered in Montana, according to the Montana DMV. 2023 MOTORSPORT NETWORK. San Jose, It's comical." In 2021, it was reported by the Montana DMV that 10% of McLaren P1s ever made (which are valued at $1 million each) were registered in the state. For the record: 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