Ky Danny

USA

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Joined: 04/29/2003

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Wow, now I know where to come for free legal advice. I know I'll get what I paid for.
The subject of Montana LLC's makes the rounds here regularly. I read every post looking for a first hand account but I have yet to hear anyone on this board say "I got caught and had to pay up". It seems to always be that "someone told me" or "I heard...".
I for one would like to hear(not)from someone that actually got dunned by their state for avoiding RV taxes using a LLC
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msmith1199

Central, CA

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Joined: 10/07/2001

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chastho wrote: Mandolin Guy wrote: When is Montana going to change their laws because they realize they're losing a lot of revenue or that they're assisting others in evading taxes in other states? How is MT losing money?? They are making a lot of money off of these LLCs. Why should MT worry about states that raise taxes so high that makes people start looking for an out. Why does it bother people when others have a MT LLC?
Although I agree that we pay way too much in taxes, I would say that if you want to take advantage of Montana's tax savings then move to Montana and take your RV with you. That would be the proper legal way to do it. If you want to live in someplace like Taxifornia where I live, then I have to put up with the taxes and work from the inside to change the laws by voting for the right politicians. I don't participate in a questionable and likely unlawful scheme to avoid those taxes. Unless of course you don't mind the penalties you'll have to pay if caught.
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msmith1199

Central, CA

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Ky Danny wrote: Wow, now I know where to come for free legal advice. I know I'll get what I paid for.
The subject of Montana LLC's makes the rounds here regularly. I read every post looking for a first hand account but I have yet to hear anyone on this board say "I got caught and had to pay up". It seems to always be that "someone told me" or "I heard...".
I for one would like to hear(not)from someone that actually got dunned by their state for avoiding RV taxes using a LLC
Go look on the General thread and there is a person there who wrote about avoiding California sales taxes by taking delivery in Nevada. This is not the LLC issue, but it is similar. Nevada is now coming after that person five years later for their money.
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msmith1199

Central, CA

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"BREAKING NEWS
Colorado Convicts RV Owners for Tax Evasion
RV Business
Wednesday, May 21, 2008
State authorities brought civil and criminal charges against Colorado residents who registered recreational vehicles worth up to $400,000 in Montana to avoid local taxes and registration fees.
The Denver Post reported that the offenders registered recreational vehicles only in Montana, which does not charge sales taxes on motor vehicles and has low registration fees. But Colorado residents must pay sales taxes and registration fees in Colorado, said Mark Couch, spokesman for the Colorado Department of Revenue.
The Colorado Attorney General's Office and the revenue department working together obtained misdemeanor tax evasion convictions against 12 people living in Jefferson, Boulder, Arapahoe and Weld counties, Couch said.
They each received deferred sentences, and were also ordered to pay restitution to the state, register their recreational vehicles in Colorado and perform community service, Couch said.
The Revenue Department also took civil action against other Colorado residents who owned recreational vehicles registered in Montana. The state billed 122 recreational vehicle owners $2.7 million in unpaid sales taxes, penalties and interest."
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msmith1199

Central, CA

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Here's one way CHP finds out about this, your neighbors snitch you off:
CHP Cheaters Hotline
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msmith1199

Central, CA

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Ky Danny wrote: Wow, now I know where to come for free legal advice. I know I'll get what I paid for.
The subject of Montana LLC's makes the rounds here regularly. I read every post looking for a first hand account but I have yet to hear anyone on this board say "I got caught and had to pay up". It seems to always be that "someone told me" or "I heard...".
I for one would like to hear(not)from someone that actually got dunned by their state for avoiding RV taxes using a LLC
Here's a more detailed article: LINK
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wny_pat

Western NYS

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Joined: 08/11/2007

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msmith1199 wrote: Ky Danny wrote: Wow, now I know where to come for free legal advice. I know I'll get what I paid for.
The subject of Montana LLC's makes the rounds here regularly. I read every post looking for a first hand account but I have yet to hear anyone on this board say "I got caught and had to pay up". It seems to always be that "someone told me" or "I heard...".
I for one would like to hear(not)from someone that actually got dunned by their state for avoiding RV taxes using a LLC
Here's a more detailed article: LINK Interesting article. He and his wife are licensed mortgage brokers in two different states. Had they fought this and lost they could have lost their brokers licenses in both those states too! Just way to much to lose, when it affects your life like that.
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Daveinet

il

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Joined: 10/29/2003

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FMCA wrote:
According to Colorado law, a Colorado resident is “any person who owns or operates any business in this state or any person who has resided within this state continuously for a period of 90 days or has obtained gainful employment within this state, whichever shall occur first.” Does that mean that if I own a business in two states, I have to register my personal motorhome in both states?? Seems like the guy in the artical could get nailed in AZ too if AZ laws are like CO. And don't even try and Work Camp in CA. No full timers better travel to CA either, because if they do any work while they are there, they'd have to pay sales tax too.
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RayChez

Barstow, Ca. USA

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Joined: 09/13/2003

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Deen wrote: goldendagger wrote: time to let this issue die..... Actually it's going to get HOTTER as more states catch on and strengthen their laws and prosecuting the violators. Tax evasion is illegal, tax avoidance is not and a lot of what people are doing is evasion and carries penalties.
In California if you do it right, it is legal. Check with the BOE if you don't believe.
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chastho

arkansas

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Joined: 07/27/2005

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If the mh had not been in the state for any 90 day period then it would be legal and they could not do anything. He should have known this and complied with the state law. I'm sure he was told this but decided he could beat the system and no one would ever know. If you can't meet the requirments of the LLC then don't do it, if you can then go for it.
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