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Montana registration crack-down

Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018.

  1. Island Time

    Island Time F1 Veteran
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    It's against the law to speed. But most have.

    That's called a premeditated loss/benefit calculation in my book :)
     
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  2. Robin

    Robin F1 Rookie

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    Now that's some innovative thinking :D
     
  3. sixcarbs

    sixcarbs F1 Veteran
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    I was still wondering if someone can answer my question.

    Your cousin or friend owns the car in Montana, and he lets you use it all you want in Georgia. Cousin/friend is in Montana and has never been to Georgia. Can they force the cousin/friend to register it in Georgia? (Insurance company knows it is in Georgia and is fine.)
     
  4. henryr

    henryr F1 World Champ
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    my guess is no
     
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  5. 09Scuderia

    09Scuderia Formula 3

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    of course not.
     
  6. Nospinzone

    Nospinzone F1 Rookie

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    I answered it in post #175.

    sixcarbs said:
    Another thought. Forget the LLC for a minute. Suppose you have a relative in Montana who lives there for real. They have a car and they let you use it in Georgia full time, they even tell their insurance company it is there and who is driving it.


    Nospinzone said:
    That won't work in Massachusetts. If you operate (whether you own it or not) a car for more than 30 days in the state, it has to be registered in Mass. The only exception is if you are active duty military. There may also be an exception for college students, but it does require some kind of registration.

    So if you want to avoid the taxes in Mass., join the Army! :D
     
  7. Texas Forever

    Texas Forever Four Time F1 World Champ
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    You make a good point. The law about registration in most states says you must register the car after X time if it is "driven over public roads." So, if you put your Ferrari or RV in storage and only drive it a limited amount of time "over public roads," a case can be made you don't have to register it, depending on how your state defines "driven over public roads."
     
  8. vrsurgeon

    vrsurgeon F1 World Champ
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    My understanding is you don't have to register a car if it sits in your living room looking beautiful and is "art" or if you drive it exclusively on the track. You will of course be completely and utterly screwed if someone steals said car, forges a title and bill of sale and then registers it as theirs..
     
  9. henryr

    henryr F1 World Champ
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    huh ? absolutely not.

    true there is no need to register a car if you don't plan on driving it on public roads.
     
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  10. steved033

    steved033 F1 Rookie
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  11. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

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    That Pagani is a replica per the owner's IG account.

    Registration is not required, but titling is.
     
  12. 09Scuderia

    09Scuderia Formula 3

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    I have a friend who owns well over 100 very very desirable cars...and NONE are registered. NONE are street driven. He buys the best of the best and keeps them. No one knows about them...no one.
     
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  13. henryr

    henryr F1 World Champ
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    i do now
     
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  14. 09Scuderia

    09Scuderia Formula 3

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    very desirable cars are assets like art.
     
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  15. henryr

    henryr F1 World Champ
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    read away........................... and get your checkbook out
     

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  16. henryr

    henryr F1 World Champ
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    or should i say read it and weep ?
     
  17. Cigarzman

    Cigarzman F1 Veteran
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    This is meaningless unless you are first cousins. If it’s second or third cousins you are going straight to the pokey. :eek:
     
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  18. grudk

    grudk Karting

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    Hypothetical: if you bring a car to CA and register it, you owe sales tax only if the car was purchased in the last year (or maybe it’s 6 months?). Couldn’t one legally purchase with a Montana LLC, register and store it for a year in Montana, then transfer to CA? Yearly use fees would still apply going forward, but one would avoid the sales tax...
     
  19. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

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    Does that rule apply to cars registered with LLCs? I know for private ownership it does (same for FL), but I don't know with corporations so they may not allow that.

    If not, just change your residence to Montana for that year, register the car there, then change your residence back to California when enough time has passed lol.
     
  20. Fiat2Ferrari

    Fiat2Ferrari Karting

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    I wonder about people buying expensive real estate this way and then transferring ownership in the entity, versus ownership in the property.
     
  21. Texas Forever

    Texas Forever Four Time F1 World Champ
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    Dunno about California. In Texas, when you register a car you'll owe sales tax unless you have already paid it to another state. It doesn't matter if the rates aren't the same, but you don't have to pay sales tax twice. So if Montana had a 1% sales tax, you'd be home free.
     
  22. Prancing 12

    Prancing 12 Formula 3

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    That's being done in Canada to circumvent foreign ownership regulations. It is also common among the 'restricted' vehicles, where an owner cannot transfer ownership for a specified period. Lots get around this by selling the entity (LLC) that owns the restricted asset.
     
  23. Fiat2Ferrari

    Fiat2Ferrari Karting

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    Strikes me as dishonest and against the spirit of fair play. I'll get off my soapbox, but as I see taxes skyrocket in my fair city it does make me wonder.
     
  24. Nospinzone

    Nospinzone F1 Rookie

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    In Massachusetts it is a little different. I bought my 612 in Ohio and paid Ohio 6% sales tax. When I registered it in Mass. where the sales tax is 6.25%, I had to pay them .25%.

    Now if Ohio was say 8.25% would Mass. have paid me 2% back? I don't think so! :D
     
  25. cls

    cls Formula 3
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    Yes and no in CA. Is TX tax reciprocal as a tax credit? That's the way it works in CA, i.e. if you buy a car out of state and pay 5%, you get a credit for that amount when you register in CA. That's assuming you are buying out of state and registering in CA, as opposed to buying out of state (while a resident of CA) and registering in MT then driving in CA, which is what I believe the question is.

    The answer to that is, yes, you can register in MT, and then a year later register in CA as a transfer, rather than sale. The LLC in MT can transfer to an individual in CA and only pay registration fees as opposed to sales tax. The state, obviously, does not look kindly upon that, and I assume should the state of CA decide to investigate and prosecute, there will be a tax liability (assuming you're a resident of CA.) I know from (unrelated) experiences, that the Franchise Tax Board of CA is not easy to deal with and can presume guilt and asses tax and penalties at their discretion.
     
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