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Old 04-29-2018, 10:16 AM
 
5 posts, read 2,527 times
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I currently live in an apartment in Boulder, CO, I own no property in Colorado, and I'm planning to buy an RV to live in for a few years. After I move into my RV I will technically be homeless, as I will no longer have a real, physical address. The RV that I'm looking at is in California and I'm planning to purchase it within a couple weeks. As I understand, the sales tax rate that I will have to pay on the RV is based upon where I live. The combined sales tax for Boulder is 8.845%, but I know that other areas of Colorado are as low as 2.9% (state tax only). As I will no longer be living in Boulder (I'll be traveling all over the country), I don't think that I should have to pay Boulder's exorbitant rate. I'm in graduate school, so I'll come back to Boulder once or twice a month for meetings, and I need to maintain my status as a Colorado resident, but I would like to only pay the 2.9% Colorado state sales tax.

What do I need to do to only pay the 2.9% state sales tax on the RV? Based upon this document ([url]https://ribbs.usps.gov/mtcsa/documents/tech_guides/PBSACustomerAgreement.pdf[/url]) my understanding is that I can just get a PO Box and use the Post Office's address as my address. For example, there's a Post Office located at 143 Main St, Rollinsville, CO. If my PO Box is number 123, then my address would be 143 Main St #123, Rollinsville, CO. This is the address where I would receive mail, the address that I would use on my taxes, etc. According to this site ([url]https://merchant.exactor.com/account/rate/info[/url]) and this site ([url]https://portal.taxify.co/Web/Public/CO.aspx[/url]) the combined sales tax rate for 143 Main St, Rollinsville, CO is 2.9%. Can I get a PO Box at this post office, use that address when I register the RV, and then pay only the 2.9% state sales tax on the RV?

I'm planning to go speak with someone at the DMV and/or Department of Revenue soon, but I'd like to hear what anyone else has to say too.

Thanks!
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Old 04-29-2018, 10:46 AM
 
1,808 posts, read 1,547,624 times
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You pay sales tax based on where you live at the time of sale. You will be living in Boulder at the time of the purchase of the RV, so you will owe Boulder sales tax. If you want to set up a sham address to get around paying taxes you owe that's tax fraud.

I would suggest you move to a low tax location prior to purchase. End your lease in Boulder, move to another city, and then buy the RV. Also, you will need a permanent location in Colorado for taxes, voting, vehicle tags, etc. to prove you are a resident of the state, therefore you need to look for a permanent location that you can reside at. Generally people doing the van life thing use a family member's residence for this.

btw, What is the cost and process to title a California RV in Colorado?
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Old 04-29-2018, 10:58 AM
 
5 posts, read 2,527 times
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Quote:
Originally Posted by brown_dog_us View Post
You pay sales tax based on where you live at the time of sale. You will be living in Boulder at the time of the purchase of the RV, so you will owe Boulder sales tax. If you want to set up a sham address to get around paying taxes you owe that's tax fraud.

I would suggest you move to a low tax location prior to purchase. End your lease in Boulder, move to another city, and then buy the RV. Also, you will need a permanent location in Colorado for taxes, voting, vehicle tags, etc. to prove you are a resident of the state, therefore you need to look for a permanent location that you can reside at. Generally people doing the van life thing use a family member's residence for this.

btw, What is the cost and process to title a California RV in Colorado?
Thanks for the quick reply. Is the sales tax determined by where I live at the time of sale (as you've stated) or at the time that I register the vehicle? Because I could wait until my lease in Boulder expires (in a couple months) to go and buy the RV, or I could just wait to register the RV after my lease expires (I believe I have 60 days after purchase to register the vehicle in CO). I'm not trying to evade any taxes; I just don't want to pay extra taxes because I USED to live in a high tax location.
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Old 04-29-2018, 02:30 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
20,773 posts, read 37,441,293 times
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As with FT RV folks...
1) You should switch your domicile to SD (one overnight per lifetime to establish income tax free SD domicile) But don't risk losing that by getting a JOB in a state that wants your tax $$ (Such as CA, and likely CO)

2) You want to have your Montana registered LLC buy / own register / insure your RV.
~$100 if you DIY, or $800 through a law firm.
Business Forms
(rules apply... be legal about it)
https://www.bozemandailychronicle.co...c0bf7e398.html
https://jalopnik.com/the-pitfalls-of...cam-1711216059
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Old 04-29-2018, 04:39 PM
 
1,808 posts, read 1,547,624 times
Reputation: 1626
Quote:
Originally Posted by sfdgfrnbd View Post
Is the sales tax determined by where I live at the time of sale (as you've stated) or at the time that I register the vehicle?
My understanding is that purchase date is what matters, but a quick google search doesn't answer the question. I would ask the DMV.

What address do you plan on using after you move out of your apartment? Like I said above, you will need a physical address for driver's license, voting, etc.. Also, you will need those type of documents to prove residency for college. I assume that is why you want to remain a resident.

I think it would be easier in the long run to think all of this out before purchasing the RV, so everything flows and nobody at school questions your residency.
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Old 04-29-2018, 05:49 PM
 
5 posts, read 2,527 times
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Quote:
Originally Posted by StealthRabbit View Post
As with FT RV folks...
1) You should switch your domicile to SD (one overnight per lifetime to establish income tax free SD domicile) But don't risk losing that by getting a JOB in a state that wants your tax $$ (Such as CA, and likely CO)

2) You want to have your Montana registered LLC buy / own register / insure your RV.
~$100 if you DIY, or $800 through a law firm.
[url=http://sos.mt.gov/business/forms/index]Business Forms[/url]
(rules apply... be legal about it)
[url]https://www.bozemandailychronicle.com/news/out-of-state-car-buyers-use-montana-llc-s-to/article_b4b37d29-e894-523e-b0ed-be7c0bf7e398.html[/url]
[url]https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059[/url]
1) I need to remain a CO resident for in-state tuition. It's unlikely that they would find out, but I'm not risking it. As a grad student, I have such a small paycheck that I barely pay state income taxes anyway.

2) I'm aware of the Montana LLC approach and I considered it, but the potential tax savings just aren't worth the risk for me. [url]https://www.denverpost.com/2008/05/21/rv-owners-who-registered-in-montana-convicted-for-tax-evasion/[/url]

I will remain a CO resident and pay any sales or ownership taxes that I'm required to pay; I just want to smart about it and reduce those numbers as much as I legally can (the Montana LLC's are legal in Montana, but it's a gray area in CO so I'm not doing it).
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Old 04-29-2018, 06:14 PM
 
5 posts, read 2,527 times
Reputation: 15
Quote:
Originally Posted by brown_dog_us View Post
My understanding is that purchase date is what matters, but a quick google search doesn't answer the question. I would ask the DMV.
Yep, I had the same search results! Will do.

Quote:
Originally Posted by brown_dog_us View Post
What address do you plan on using after you move out of your apartment? Like I said above, you will need a physical address for driver's license, voting, etc.. Also, you will need those type of documents to prove residency for college. I assume that is why you want to remain a resident.
I'm hoping to just use the Post Office address, like I explained above. As I understand, this is perfectly legitimate, according to this document. [url]https://ribbs.usps.gov/mtcsa/documents/tech_guides/PBSACustomerAgreement.pdf[/url]

If that doesn't work, then I could get a UPS Personal Mailbox in Evergreen, CO, which is advertised as a "personal or business mailbox with a real street address." [url]https://www.theupsstore.com/mailboxes[/url] This location would have a 4.50% combines sales tax rate, which isn't Rollinsville's 2.9% but it's a heck of a lot better than Boulder's 8.845%. I'm already a CO resident and have a CO driver's license, so according to this page, it should be pretty straightforward to send some mail to my new PO box or UPS mailbox and get the address updated on my driver's license. [url]https://www.dmv.org/co-colorado/change-address.php#Change-Your-Drivers-LicenseID-Card-Address[/url]

I am curious how the DMV will determine where I live. Will they just accept the address on my driver's license (my new USPS or UPS box address)? I guess I'll find out tomorrow when I talk to them.

Quote:
Originally Posted by brown_dog_us View Post
I think it would be easier in the long run to think all of this out before purchasing the RV, so everything flows and nobody at school questions your residency.
Whatcha think I'm doin right now? I've got two months until my lease expires and I've spent the last year finding the RV that I want, taking one for a test drive, getting the down payment in order, etc. At this point I have most of the plan worked out and I'm just trying to be smart about the final financing details. I will remain a CO resident, so the school tuition classification won't be a problem.
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Old 04-29-2018, 06:30 PM
 
1,375 posts, read 2,618,882 times
Reputation: 1663
There are a couple of counties on the KS border where there is no county sales tax, so the rate is 2.9%
https://www.salestaxhandbook.com/colorado/sales-tax-map

I have no idea if it applies to resales, but for new cars, I know some people who wanted to go to CA to buy their Tesla at the factory. CA law requires Tesla to charge CA sales tax, even if the car's destination is out of state. The key here is it's being driven out of state vs. transported out of state on a carrier. For driving it from CA, you need to get temp tags in CA, so you might want to check into this as well, to make sure you're not paying CA sales tax.
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Old 04-29-2018, 07:08 PM
 
5 posts, read 2,527 times
Reputation: 15
Quote:
Originally Posted by BarryK123 View Post
There are a couple of counties on the KS border where there is no county sales tax, so the rate is 2.9%
[url]https://www.salestaxhandbook.com/colorado/sales-tax-map[/url]

I have no idea if it applies to resales, but for new cars, I know some people who wanted to go to CA to buy their Tesla at the factory. CA law requires Tesla to charge CA sales tax, even if the car's destination is out of state. The key here is it's being driven out of state vs. transported out of state on a carrier. For driving it from CA, you need to get temp tags in CA, so you might want to check into this as well, to make sure you're not paying CA sales tax.
Thanks, I found that site a while back but it doesn't seem to be entirely accurate. The Colorado Dept of Revenue lists a few online sales tax databases here, so I used those. They seem to be more accurate. [url]https://www.colorado.gov/pacific/tax/local-sales-use-tax-by-address[/url]

Yes, the CA dealers always talk about a delivery fee. I'll pay probably $600-700 to have a CA dealer deliver it to Reno, NV (that's what one dealer said they would do) and then I'll pick it up from there, or I might just have them deliver it to me in CO.

I also once had a dealer tell me that I could "hire" my girlfriend to deliver an RV out of CA and just pay her a dollar. Ha not sure how legitimate that one is, but we'll see.
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