My son called tonight from Colorado Springs and told me to check out this news story. Thought maybe some maybe interested too!!! WOW. Hope that doesn't expand.... here is the article. I copied it from KRDO.com

Colorado Cracks Down On RV Registration

Updated: May 22, 2008 03:33 PM CDT






By Samantha Anderson
sanderson@krdo.com

DENVER - Twelve Colorado residents pleaded guilty to felony tax evasion charges on Wednesday for illegally registering their recreation vehicles in Montana.

The Colorado Department of Revenue said that 122 RV owners have been billed more than $2.7 million dollars in unpaid sales taxes, penalties and interest.

Montana has no sales tax on motor vehicles and low registrations fees, some buyers register vehicles there in an attempt to save money.

To get around Colorado's tax laws, the drivers jump through a loophole in Montana law that lets them form a Limited Liability Corporation or an LLC. The LLC then buys and registers the vehicles in Montana, using the address of a Montana attorney or a registered agent. The Montana agent then mails the license plates and registration to the owners in Colorado, who never have to set foot in Montana.

On average, in Colorado, sales tax and registration can cost around $13,000.

Colorado Department of Revenue officials say they will continue to take action on illegal Montana license plates.

When will people learn that unless you are a full-timer and never stay anywhere very long, your vehicles will have a "garage" state, the place where your residence is.

Every state doesn't care who owns the vehicle, they care if it is "garaged" in the state. If it is, it needs to be registered in that state. Some states are looser about enforcement but the laws are there.

Even full-timers need to be smart and register your vehicle where you get your drivers license.

The states don't treat this as a license plate issue, they treat it as tax evasion. One thing never to have a state on your case for is tax evasion.

quote:

Originally posted by Mark & Dale Bruss:
Even full-timers need to be smart and register your vehicle where you get your drivers license.

It's always been my understanding that if a fulltime RVer is using a Montana LLC to avoid paying sales tax, that the vehicle is licensed in Montana with Montana plates regardless of where they are domiciled and have their driver's license.

Every state is looking for ways to find money in these times and what Colorado is doing will be repeated across the nation. If you are a full timer, you should look at the laws that govern the state you are choosing as a resident.
It is not hard learn and follow their laws.

We gladly paid to register our MH in Colorado because I lived in one of most beautiful states in the union. Now as we start the next journey in life and head out to the land of higher and higher fuel prices, we will make South Dakota our new home state...we will follow their rules and ensure that we do all we can to ensure there is no doubt that we are no longer Coloradans and that we are South Dakota residents. We will travel to the four corners of this great land and beyond and yes, we will take advantage of the lenient tax laws of SD --- that is the advantage of being full timers...you can move to any state.

What we (all RVer) cannot do is pretend to be residents of a state with no income tax, lower registration fees, etc., yet live full time in a state that does have those advantages. Those who want to cheat the system and save a few dollars will get caught and pay a price. I also think that a lot of non RVers also will look at license plates from out of state and wonder if the people are legit or just trying to beat the system...kind of paints us all with a broad brush. Of course these are our humble opinions...you may disagree and you may want to defend those who have used an LLC, you may even tell me I am so wrong and everyone has a right to claim the LLC status and live whereever they want regardless of the state law in their state of residency. I guess I would counter with why did they pay up and not go to court, where was the lawyer who set up their LLC, did they offer to defend these people in Colorado court?

We hope you all are having a great day....we are!

Excellent summation, firepup! Those MT attorney's concern is adhering to MT laws, the rest is up to the individual.
FWIW, tax evasion laws were the only way Al Capone was jailed, the feds could never find any other way to stop him.

I do not have a Montana LLC.
In defense of the Montana lawyers:When I enquired about forming a LLC from Bennet Law Firm in MT,they sent me a detailed copy of the
Colorado law.They also advised me that they would not be able to defend a case in CO as they were not licensed here.They also advised that they could not find any cases defending the LLC in court..
As we have a place in NM they also sent a copy of the NM laws.It might have worked in NM,but when we came back to CO..NOT.
Anyway I was forewarned by the attorneys..
We didn't do it.