People register vehicles in Montana to avoid registration taxes, I'll post AI's summary of that below.
I googled the VIN to see if it had been wrecked, didn't see anything. I googled "40-20 Repairs & Services Corp" and saw just a handful of reviews, you may take a look at those.
I might guess this was an auction sale and flip, registering through Montano to save money, but I really have no idea. At the end of Owner 2's stint there wasn't a "listed for sale" carfax entry like you might expect to see if sold by a dealership.
AI:
People register cars in Montana primarily to avoid hefty sales taxes, high annual personal property taxes, and strict inspections/emissions requirements in their home states, especially for luxury or collectible vehicles, by using a Montana-based LLC to title the vehicle, which is legal but can be risky if done improperly. The significant savings come from Montana's lack of sales tax, low registration fees, and no vehicle inspections or emissions tests, plus options like permanent registration for older cars.
Key Reasons for Montana Registration
- No Sales Tax:
Montana has no state sales tax, offering huge savings on expensive vehicles. - No Annual Personal Property Tax:
Unlike many states that tax vehicles based on value, Montana doesn't have this, significantly cutting annual costs. - No Inspections/Emissions:
There are no mandatory state vehicle inspections or emissions tests. - [url=https://www.google.com/search?sca_esv=01e84e26bfa42c3c&sxsrf=ANbL-n61hIXIIzdmLl-F8c02hUK5gRM2Ew%3A1770474273436&q=Permanent+Registration&sa=X&sqi=2&ved=2ahUKEwjDxpvRyseSAxUnw_ACHU7qBfMQxccNegUIhAEQAw&mstk=AUtExfBqclYMrkvHNl6PsDeeQcvvd3Zfh7zRbvNta_K_3r89d4jEZzek3Q8gf4W3IR3dQVJ5arQ5gM287cKx9YOm_j8R0WGQSUh4GsghH40-nZXhoPEUNa-6YE0aipCv4MVYHgI&csui=3][/url]Permanent Registration:
Older vehicles (typically 11+ years) can qualify for permanent registration, eliminating annual renewals. - LLC Loophole:
Owners form a Montana Limited Liability Company (LLC) to own the vehicle, making the LLC the registered owner, allowing for these benefits without the owner needing to be a Montana resident.
Who Uses This Method?
- Owners of high-value cars, supercars, classic cars, RVs, and boats.
- People living in states with high car taxes (e.g., Virginia, California, Washington).
Risks & Considerations
- Insurance Issues: Your insurance company might deny claims if they find out the car's primary location differs from the registration address.
- State Crackdowns: Some states are cracking down on this practice, and authorities can take action if illegal registration (like falsifying residency) is discovered.
- Visibility: The scheme is well-known and visible on social media, increasing scrutiny.
Essentially, it's a legal tax-avoidance strategy for high-value vehicles, but it comes with potential risks if not executed carefully or if used to evade laws in your actual state of residence.
