Has anyone heard of this loophole in Montana?

https://www.49dollarmontanaregisteredag ... exotic-car

A: If it sounds to good to be true it probably is.
B: I have heard of states that collect taxes if your plane stays there for over a set amount of time in a year, at the very least I would do quite a bit of research before I tried something like this, other states are not going to let you get around taxes this easy.

As Dale said in part B, your home state likely has ‘Use Tax’ that applies to proper stored or used that state. I looked into registering my plane in MT but since it will be stored in ID I would still have to pay the use tax.

Jeff M wrote:Has anyone heard of this loophole in Montana?

https://www.49dollarmontanaregisteredag ... exotic-car

A friend of mine is doing something similar...setting up a MT based corporation that one or more of his airplanes will be registered to. I believe his primary interest is avoiding sales tax on a new aircraft or two.

I've watched someone's whole "resident of another state for tax purposes" scenario play out for several years, and it's not without some significant obligations, pitfalls, and drawbacks. Unless the savings are VERY substantial, it doesn't appear to be anywhere near worth the hassle. Unless you have the money to defend yourself in court in two states, plus pay the fines and penalties if the judgement goes against you, I'd avoid it entirely.

Be advised that the State of Montana is currently looking at these LLCs, which are aimed specifically at avoiding paying taxes in another state.

Frankly, Montana has realized that the state is missing out on a lot of revenue in this regard. They are currently deciding where to go with this, but the latest thing I read is that the state will impose a “luxury tax” on items of more than $150 K soon.

Who knows, but it is interesting that 50 of the total of 918 Porsche 918s ever built are registered in the state of Montana. None of which likely reside within the state of Montana. Those cars sold for $880,000 new and are now worth well over $1 mill.

MTV

mtv wrote:
Who knows, but it is interesting that 50 of the total of 918 Porsche 918s ever built are registered in the state of Montana. None of which likely reside within the state of Montana. Those cars sold for $880,000 new and are now worth well over $1 mill.

MTV

Okay Mike, I get that you know just about everything there is to know about airplanes, but how in the hell did you know such a completely random fact? Are you a closet Porsche savant? I think there might be more to you than people believe. Kinda scary


*for those of you thin skinned types who might take this comment as me being mean to Mike, pull your panties up and relax. I'm just messing with him.

akgreg wrote:

mtv wrote:
Who knows, but it is interesting that 50 of the total of 918 Porsche 918s ever built are registered in the state of Montana. None of which likely reside within the state of Montana. Those cars sold for $880,000 new and are now worth well over $1 mill.

MTV

Okay Mike, I get that you know just about everything there is to know about airplanes, but how in the hell did you know such a completely random fact? Are you a closet Porsche savant? I think there might be more to you than people believe. Kinda scary


*for those of you thin skinned types who might take this comment as me being mean to Mike, pull your panties up and relax. I'm just messing with him.

It might have something to do with this http://www.google.com

TangoFox wrote:

akgreg wrote:

mtv wrote:
Who knows, but it is interesting that 50 of the total of 918 Porsche 918s ever built are registered in the state of Montana. None of which likely reside within the state of Montana. Those cars sold for $880,000 new and are now worth well over $1 mill.

MTV

Okay Mike, I get that you know just about everything there is to know about airplanes, but how in the hell did you know such a completely random fact? Are you a closet Porsche savant? I think there might be more to you than people believe. Kinda scary


*for those of you thin skinned types who might take this comment as me being mean to Mike, pull your panties up and relax. I'm just messing with him.

It might have something to do with this http://www.google.com

Actually, this was all from a newspaper article in the Bozeman paper. Well, except for the pricing and numbers of the Porsche 918.....those are just common knowledge, of course.

MTV

Montana now taxes vehicle registrations over a certain value...don't remember the exact number. But the State of Montana is well aware that there are damn few $200,000 vehicles on their roads, but more than a few registered with MT plates. Abuse a system and the system will adapt to the abuse...

Yeah, they were talking about any “vehicle or motor home” worth over $150 K. But in MT, aircraft registration only costs $10 a year, and isn’t based on value. Yet.

MTV

For years, there were ads in Trade-a-Plane "register your airplane in Delaware",
probably still is. It's all about avoiding taxes in your real home state.
I just manned up and paid the WA use tax when I've bought my airplanes.
It only hurts til the next check is written.