[Onlyliveonce]

http://www.dmvnv.com/pdfforms/edrs_portal.pdf

[equid0x]

Originally Posted by robr2

Regarding the Montana LLC's:

Setting up an LLC in Montana for the purpose of registering a vehicle in that state is perfectly legal - in Montana. But other states do not have to recognize that LLC for purposes of collecting sales, use, and registration taxes. Once that vehicle comes into the state of your residence, those states can collect the taxes.

Interstate commerce clause? How will Nevada gain jurisdiction over a Montana LLC?

[vtvette]

Originally Posted by equid0x

Interstate commerce clause? How will Nevada gain jurisdiction over a Montana LLC?

I'm sure my statement is incredibly simplistic and it's purely a guess as I know nothing on the subject but, if you are determined to be a Nevada state resident and register your car in another state to avoid Nevada taxes would that be considered tax evasion?

[WestieJeff]

This thread got me reading down all sort of rabbit holes about this.

Near as I am tell, NV would still be owed "use tax" if it was used here and sales tax was not paid. I can't seem to find how many days per year it must be used here before that use tax becomes due.

The registration issue looks a lot more vague. I couldn't find any laws that would require this type of vehicle to be registered in NV. It's definitely a gray area.

The City Manager of Boulder City did this and attracted some media attention: https://www.lasvegasnow.com/news/ite...ntana/78090459

Overall, I'm guessing as an average joe nobody would hassle you on this.

Originally Posted by vtvette

I'm sure my statement is incredibly simplistic and it's purely a guess as I know nothing on the subject but, if you are determined to be a Nevada state resident and register your car in another state to avoid Nevada taxes would that be considered tax evasion?

[robr2]

Originally Posted by equid0x

Interstate commerce clause? How will Nevada gain jurisdiction over a Montana LLC?

It's comes down to Use Tax. If the vehicle is garaged or used in your home state for a particular number of days, it will be subject to the use tax. Even the MT LLC lawyers often have notes on their websites that the owner may be responsible for use taxes in their home state.

Here in MA, they cracked down on NH registered vehicles parked in MA years age and did the same on MT RV's when this scheme began popping up.

[RationalExpectations]

There is nothing new about Use Tax. Technically, if you purchase something off eBay or Amazon and you are not charged a sales tax, it is on you to separately file & pay a Use Tax in Nevada - and that has been true for decades.

But the Use Tax has nothing to do with vehicle registration. They are separate concepts administered by separate state entities.

I recall reading in a car magazine that the State of Montana was cracking down/tightening restrictions on out-of-state vehicle owners registering their vehicles in Montana -- but of course Car & Driver isn't the best source for such information.

I know a cardiologist who owns a Bentley registered in Montana. He's never set foot in the state.

[RationalExpectations]

Here's an example - it came up near top of the list on a google search.

https://www.49dollarmontanaregisteredagent.com/

It seems it is about $1600 for a high value (over $150K) vehicle for the first year, and $49 per year thereafter.

For a non-high-value (less than $150K) vehicle, it seems it is $800 for the first year and $49 per year thereafter.

[robr2]

Originally Posted by RationalExpectations

There is nothing new about Use Tax. Technically, if you purchase something off eBay or Amazon and you are not charged a sales tax, it is on you to separately file & pay a Use Tax in Nevada - and that has been true for decades.

Here in MA, they make it easy to pay the use tax - there's a line on the state tax form. Leaving it blank when some amount should be there and signing the return creates a tax evasion situation. I typically tell my accountant to throw a couple of hundred bucks as "out of state purchases" and hand over the $12.50.

[vtvette]

A friend of mine moved out to Vegas from Vermont to try to make a go of it back in 2012. He was here about 6 or 8 months. He had a green Vermont plate on his truck. He was stopped a couple of times for some lame reason and he said the conversation always turned to "how long have you been in Vegas, are you employed here, etc". He was given warnings but never tickets. The ticket for out of state reg would have been $1000 or $1200 IIRC. He was staying with me both times he was stopped so, it probably helped he didn't have a Vegas address.

I've also heard of police staking out schools, watching people drop off kids with out of state plates. Pretty sneaky, would be hard to claim you're not a resident if you are dropping your kids off at school. Don't know if this is true or not but I could see it happening.

The cost of vehicle registration is more than offset by the relatively low property taxes we pay so I have no problem with it.

[cw30000]

Originally Posted by vtvette

I'm sure my statement is incredibly simplistic and it's purely a guess as I know nothing on the subject but, if you are determined to be a Nevada state resident and register your car in another state to avoid Nevada taxes would that be considered tax evasion?

You mean tax avoidance?

Avoidance is legal. Evasion is not.