The Montana LLC complication

So VINWIKI has done a good job explaining how Georgia has flipped the switch and started going after people that operate vehicles in state with a Montana LLC. 

Question is, which state is next? Is Kalifornia starting? I’d be surprised if not. Anyone affected by this? If you didn’t know, hopefully this is a good warning about getting your ducks in a row.

 

If you watch the interview with the State's representative, your blood will boil. 

"At the end of the day, somebody is going to jail"

No regard for human life. Your tax system allowed for a loophole, and savvy individuals exploited it. Close the loophole and solve your problem.

3 minutes ago, Phteven said:

If you watch the interview with the State's representative, your blood will boil. 

"At the end of the day, somebody is going to jail"

No regard for human life. Your tax system allowed for a loophole, and savvy individuals exploited it. Close the loophole and solve your problem.

Yeah, its frustrating. No warning,  no notice. Just search warrants executed at business and presumably homes. Considering it’s how they got Capone, taxes are more i portent to feed the monster.

 

the other videos:

 

Interview with the Agent

 

More than presumably homes, the agent straight up stalked the guys and sat outside their houses for "weeks". 

15 hours ago, Destructo said:

Question is, which state is next? Is Kalifornia starting?

CA has been on top of this for a long time, but they don't really go out kicking in doors.  They just let law enforcement handle it as it presents itself.  Have a montana plate with a CA license and you have some 'splanin to do.  The only thing the gov't does well is collect money. 

http://archive.signalscv.com/archives/14087/

I remember reading that motorhomes and such were far bigger offenders than exotic car owners, but doesn't sound nearly as glamorous for the news outlets.  Grandma and Grandpa in their Prevost bus is picking on the elderly, guy in his orange lambo = that rotten bastard.

1 hour ago, Phteven said:

If you watch the interview with the State's representative, your blood will boil. 

"At the end of the day, somebody is going to jail"

No regard for human life. Your tax system allowed for a loophole, and savvy individuals exploited it. Close the loophole and solve your problem.

Not a loophole, but the appearance of exploiting a loophole.  Forming a MT LLC that does nothing but hold title to the vehicle (doesn't generate revenue to be able to pay for a vehicle or do any business at all) to avoid paying sales tax has never been "legal" in most (if any) states.  The states just haven't devoted the resources to do anything about it, for the most part.  It's more like ordering things off the internet from out of state businesses that don't collect sales tax.  You can call it a loophole, but as a technical matter the buyer still owes the sales tax; the seller just isn't legally obligated to collect it and remit it to the state, and the states haven't devoted a lot of resources to the issue.

Why are they all of a sudden up in arms about this loophole? But the Delaware Corporation filing almost no one really knows about? Seems that would be a larger cash cow, but probably harder to collect. 

 

Edited November 2, 2018 by Destructo

1 hour ago, BLK85 said:

Why are they all of a sudden up in arms about this loophole? But the Delaware Corporation filing almost no one really knows about? Seems that would be a larger cash cow, but probably harder to collect. 

 

 

Im guessing as mentioned above, it’s sexier to make an example of exotic car owners. Corporations would have more lawyers to litigate and draw out the battle. Most individuals will attempt to settle quickly and pay the fine. It’s pathetic, but the reality of a cash-hungry authority. 

On 11/2/2018 at 9:31 AM, RedGTS said:

Not a loophole, but the appearance of exploiting a loophole.  Forming a MT LLC that does nothing but hold title to the vehicle (doesn't generate revenue to be able to pay for a vehicle or do any business at all) to avoid paying sales tax has never been "legal" in most (if any) states.  The states just haven't devoted the resources to do anything about it, for the most part.  It's more like ordering things off the internet from out of state businesses that don't collect sales tax.  You can call it a loophole, but as a technical matter the buyer still owes the sales tax; the seller just isn't legally obligated to collect it and remit it to the state, and the states haven't devoted a lot of resources to the issue.

It's tax evasion - agree it's not a loophole and the states are relying on the dealers. 

In many states dealers are collecting sales tax and taking care of taxes plate etc. if they don't they can be fined and if a dealer takes a car in trade without registered correct plates they can be fined. Every time I have bought a car out of state the dealers collect tax and send my plates. 

In my state it's easy to become a dealer by buying / selling 6 cars and some misc things. Some guys go to the auction buy some cars leave them and sell them the following week to meet the dealer quota. 

Chances are someone doing this is doing other things just as bad - showing off your unpaid taxes on an exotic is going to end bad it's not if but when.