States cracking down on sales tax cheats

2,252 Views | 14 Replies | Last: 10 mo ago by Slicer97
Mr.Ackar07
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[A selected quote from an article behind a paywall is one thing to support your point, but multiple lengthy quotes essentially evades the paywall -- Staff]

This is a Bloomberg Law article, so behind a paywall but thought this was interesting:


And the end-all be-all reason for the crack down:

Quote:

"For a department of revenue not to act and essentially give a free ride to some wealthy people sends a message that they can get away with conduct that is very troubling," said Hamer, a former director of the Illinois Department of Revenue. "You don't want to create that kind of culture in your state."
akm91
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California had regulations about car purchases in Oregon (no sales tax) more than a decade ago. I guess this is just another state to go after.
chickencoupe16
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Mostly Foggy Recollection
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TLDR… taxes are theft and people will try to skirt them.

Utah and their milquetoast country club Mormonpublicans suck as do the communists in Kali.
AgGrad99
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Cheats?

After reading that, it seems like it's a perfectly legal way to reduce your tax burden.

Curious to see how they enforce this.
AtticusMatlock
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Attorney explains how it all works. It's been going on for a long time.

javajaws
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I always laugh when I see comments like "you can afford to pay". They fail to see the point. Why pay when you have options to legally save yourself some money? Who throws away money needlessly?
LOYAL AG
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I pretty much assume all states require people to register cars in that state when the person lives there. I would think this could cause insurance issues for the owners as well. In fact if they really want to solve the problem they will address via changes in insurance laws such that an insurance company can't cover a car licensed in one state if it spends above X% of its time in another. Insurance has to be for the state the car actually exists in at which point the states have a database to use for enforcement.
DallasAg 94
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Oklahoma used to require a Ok address when buying a car there.

Back in the day, when I bought my wife's diamond for her engagement ring, they indicated they could mail it to another state to get around the Sales Tax. I was up to saving the money but the wife was an emphatic "NO!"
Courtesy Flush
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I might know someone that has done the Montana LLC process. As was stated, go to a motorhome park and a vast majority of Class A motorhomes are registered in Montana or South Dakota.

The State of Texas will often pursue sportfishing boats for the same reason. Many of the big sportfishing boats owned my Texans are registered in Delaware. 15-20 years ago those boats seldom left Texas waters and so the state would pursue those owners to pay tax. They always claimed the boat never established residency in Texas but of course the boat was in Texas 95% of the time if not year-round. Nowadays these guys actually do take their boats out of Texas often to fish tournaments from Louisiana to Florida and also take the boats to the Yukatan to fish and so they have a more legitimate reason to avoid the taxes in Texas but years ago many of the boat owners did not ever leave Texas.
Jack Squat 83
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javajaws said:

I always laugh when I see comments like "you can afford to pay". They fail to see the point. Why pay when you have options to legally save yourself some money? Who throws away money needlessly?


Liberals do mostly , because they're dumb or their parents made the money for them.
BQ_90
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Here is a free article that explains this

https://www.hagerty.com/media/market-trends/hagerty-insider/the-montana-license-plate-loophole-explained/
AtticusMatlock
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The video above also goes into insurance complications.

Is the LLC paying the insurance premium? Is the policy in the LLC's name? Is the insurance purchased in Montana under Montana law? What if the vehicle is being kept, maintained, and primarily used in Texas and you get in a wreck?
AlaskanAg99
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TX just needs to implement a Paper Plate system for boats.
Slicer97
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Courtesy Flush said:

I might know someone that has done the Montana LLC process. As was stated, go to a motorhome park and a vast majority of Class A motorhomes are registered in Montana or South Dakota.

The State of Texas will often pursue sportfishing boats for the same reason. Many of the big sportfishing boats owned my Texans are registered in Delaware. 15-20 years ago those boats seldom left Texas waters and so the state would pursue those owners to pay tax. They always claimed the boat never established residency in Texas but of course the boat was in Texas 95% of the time if not year-round. Nowadays these guys actually do take their boats out of Texas often to fish tournaments from Louisiana to Florida and also take the boats to the Yukatan to fish and so they have a more legitimate reason to avoid the taxes in Texas but years ago many of the boat owners did not ever leave Texas.
I've got a legitimate reason for avoiding the taxes in Texas. I don't want the state stealing my money just because I own something.
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