After Oct. 1, the registration fee for that vehicle in California would jump to $2,220 a year because the percentage charged on the value of a vehicle purchased will increase from 0.667% to 2% in California. That question depends on a lot of variables. Close observers would also have noticed a detail far more polarizing than the semi-lavender paint job:The Turbo came with a clean Montana title in the name of the sellers LLC, the listing said. To start, it's important to explain the biggest reason why so many exotic cars have Montana license plates: Montana has no sales tax. He resides on a small farm in Eastern Kansas where he (sometimes) enjoys fixing ancient farm equipment. Suppose you have a vehicle registered under an LLC already. So you have to be very careful. And now, the California Highway Patrol (CHP) is asking residents to report if they frequently notice the same vehicle displaying an out-of-state plate. Of course not! 95111, aaa Some start an LLC in the state, which gets them a mailing address and residency status of sorts. Witnesses offer conflicting accounts, Mars Voltas lead singer broke with Scientology and reunited with the band. (You must log in or sign up to post here. I live in Montana and have an LLC. DIRTLEGAL.COM IS A PRIVATELY OWNED WEBSITE AND IT IS NOT OPERATED BY ANYGOVERNMENTAGENCY. 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. Botello noted that the figure does not reflect back registration and license fees paid voluntarily by vehicle owners targeted in the investigations. 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. Except theres one problem: None of these exotic cars have ever seen Montana. All rights reserved. Depending on where youre at, it might seem like you see a disproportionate amount of Montana license plates. national average state and local sales tax, Top 5 Electric Motorcycles & Scooters of Barcelona 2019, Buying a UTV Lift Kit: Everything You Should Know, REGISTER YOUR CAR IN MONTANA - THE EASY WAY, Want to own Doug DeMuro's Audi RS2 but live in California? But a survey released last year by researchers at UC Riverside found that 3.38% of vehicles in California were not registered in the state from June 2000 to December 2000. The best part about purchasing your vehicle in Montana is that they dont have sales tax. Exotic Cars and Montana Plates | The Truth About Cars They . 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. The basic concept of the process is known to many, but the specifics are a little harder to nail down. Why? Oh, thats interesting, I thought. 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. 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. A bill of sale and an odometer mileage disclosure, if required. 95112, 1669 Flanigan Dr, (California State Police have started cracking down on the residential discrepancies of drivers pulled over for other infractions with California licenses and out-of-state plates.) The DMV rules also state that Californians are prohibited from importing, purchasing or leasing a new vehicle from another state, unless the vehicle was manufactured for sale in California and the Environmental Protection Agency label certifies the vehicle has California smog equipment.. Four of the 100 Pagani Huayras ever made were . Send it to Carl at cwc@andersonadvisors.com. Permanent Trailer ID (PTI) transactions. For somewhere around 1200$ there would be nothing to do from our side except fill out a form. Montana has long been a bastion of tax freedom for many years, so it was one of the original havens for supercars. Four of the 100 Pagani Huayras ever made . On the national average of 7.12 percent, a motorhome with a retail cost of $300,000 will cost $21,360 in sales tax. The Department of Motor Vehicles (DMV) website uses Google Translate to provide automatic translation of its web pages. Essentially, Welch says, even if you bought a new car in Nevada that was not California certified but still passed emission requirements, the DMV would not register it in California. There is also the misconception that only rich people can get a Montana registration or benefit from having one. 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. I always feel better having my cars registered in California., Why so many supercars in California have, Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Why so many supercars in California have Montana license plates, Janitors say theyre understaffed, overworked at Irvine Co.-owned properties, Yellen says US could hit debt ceiling as soon as June 1, The cost of high-speed rail in California might surprise you, First Republic Banks jumbo mortgages brought on failure, Where did Rivians electric truck come from? Many see it as a smart move. I was thinking, Huh, Montana. Subject to certain age restrictions, someone from out of state can legally drive in California as long as:. 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. Thats not the point. 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. Robot vacuums, stick vacuums, high-performance mops and more are up to 35% off during this Target deal. Below is a table of each state's registration and title fees. You've just saved $118,770. Not surprisingly, Flathead, Granite, and Deer Lodge counties have the largest amount of luxury vehicle registrations, according to data in a vehicle registration primer for the Montana DMV. 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. The 2020 Hyundai Sonata Hybrid jumps to the head of the hybrid class. Why So Many Supercars Have Montana License Plates - Bloomberg The DMV is unable to guarantee the accuracy of any translation provided by Google Translate and is therefore not liable for any inaccurate information or changes in the formatting of the pages resulting from the use of the translation application tool. Resurrecting an old thread here but thought I should pass it on. And now, the California Highway Patrol (CHP) is asking residents to r eport if they . (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.) 1: insurance. This is not chump change, even for those who can afford it. Depending on the circles you travel in, Id be willing to bet that you probably see many Montana plates if you frequent RV parks or car meets. The practice of registering a collectible car there, regardless of where itislocated in reality, is done in orderto avoid paying taxes and shirkemissions standards. Heres how it works: You hire a Montana law firm, they set up an LLC for you, they charge you a fee, and then they register your vehicles in Montana. You can schedule online or by calling 888.871.8535. At one point, Massachusetts was sending police into RV parks to check for Montana plates. ), Lakers vs. Warriors: What scouts expect in playoff series, The Great Big Highly Specific Guide to Disneyland, Decades of failures leave L.A. County facing up to $3 billion in sex abuse claims, LAPD investigating stabbing near Los Angeles High School, Bass budget proposal for Animal Services is far less than what department requested. I get the sense that you can get a license plate for anything in Montana, including a tape dispenser. 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. (Bloomberg) -- The 1987 Porsche 911 that sold on Bring a Trailer on July 26 was a coupe so dreamy that latefounder Ferdinand Porsche would be sorry to have missed it. 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. And it has attractedplenty ofdetractors. CA 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. The Ultimate Guide to Airbnb and Short Term Rental Top 9 Tax-Free Investments Everybody Should Consid How to Claim the Electric Vehicle Tax Credit. 4122 Monterey Rd, San Jose, CA 95111 MCI's plain black license plates can be seen all over Montana. Gallatin County collects a 0.5 percent local option vehicle . Others acquire a mailbox address or property at which they can claim Montana residency. Why Do Many US Luxury Cars Have Montana License Plates? Replacement : License plate with a new number: $10.30. To register them elsewhere is to effectively cheat the system that California officials set in place to help reduce air pollution for all. And, yeah, theres meaningful movement.. Call it what you want, if it's registered legit and you have residence or a business in that state your good. European Union Sets Scary Precedent for Autonomous Cars. Do Not Sell or Share My Personal Information. Better yet, there are businesses in Montana solely dedicated to helping people avoid a sales tax on exotic cars and expensive recreational vehicles. Your insurance company generally writes policies in the state where your car is registered, not the state where your car is operated. Its very difficult to get insurance. Exception No. Its no wonder people are leaving this state in droves.! If the same vehicle were registered in California, the owner would pay $666.60 a year in registration fees, more than twice as much, based on information provided by the Oregon and California motor vehicle departments. Doug was born in Denver, Colorado, and received an economics degree from Emory University in Atlanta. Furthermore, a Montana LLC-owned motor home could not operate in California with its Montana plates indefinitely. Thats correct; no nagging smog checks. It's a strategy that you can agree with or not.. Then there are the tax issues. But hey - you saved thousands of dollars! 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.