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How One Couple Saved $18,500 in Sales Taxes and Registration Fees - No Tax

For more and more Americans today, there’s nothing quite like life on the open road. Travel and adventure. Mobility. Freedom to go where they want, when they want.

Many individuals—from retirees to couples tired of corporate life to recent college graduates—love to spend their days tooling around the country in their RVs.

Yet, purchasing an RV can be quite an expense (even buying a used RV can be quite pricey)—and, on top of that, you typically have to pay significant money in sales taxes and registration fees.

The Advantages in Montana - In order to avoid the extra expense often associated with RV ownership, a number of campers have been flocking to Montana, where RV purchasers can save thousands of dollars in taxes and registration fees by setting up a limited liability corporation (LLC). For instance, one Nevada couple managed to save a whopping $15,000 in Nevada sales taxes and $3,500 in registration fees just by setting up a corporation in Montana. (Note: Consult your attorney and CPA for your unique situation).

More and More People Seem To Be Doing It - Such a technique appears to be a growing trend. In fact, it seems to be the leading topic of conversation at campground RV parks around the nation. Even individuals from foreign nations have been coming to Montana to take advantage of the deal. As a result, Missoula County now ranks fifth nationally in the number of RV registrations.

Legal Experts, Make Sure You Talk To One!
- Yet, RV buyers should be aware of the fact that not all states look kindly on the Montana system. The state of Washington, for instance, thinks that RVers who migrate to Montana are simply engaging in tax evasion, avoiding paying taxes in their home states. However, Montana legal experts insist that there is no scam involved. They note that, for years, Americans have attempted to legally limit their tax burden on major purchases. And they say that the system is entirely legal—that it simply reflects a policy choice made by the people of Montana.

The RV business is indeed booming in the state. One leading recreational vehicle dealer states that as much as a third of his business comes from out of state. Apparently, the word is out—Montana can be a phenomenal place to purchase your RV.

If you’ve been seriously considering buying an RV, traveling to Montana to make the purchase could save you a great deal of money. Consult your accountant or tax attorney to determine if such a purchase could work for you, and to further explore the legality of a move like this. The money you save could easily be invested in your next vacation (or, fun toys for your new RV!)

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