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11-17-2011, 12:01 PM
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#1
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Member
Alpine Owners Club
Join Date: May 2007
Location: Where ever
Posts: 99
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State says it's after owners of RVs who've dodged sales tax
Minnesota says it's after owners of RVs who've dodged sales tax
PAUL WALSH, Star Tribune
Nearly 300 suspected cases of Minnesotans buying pricey recreational vehicles and then registering them in Montana to avoid paying sales tax have drawn the scrutiny of state investigators.
The state Revenue Department said Wednesday that it has closed 22 of these cases with the need to bring charges and collected about $230,000 in taxes. The department said 270 more cases are being investigated.
The Revenue Department said the tax dodge involves the RV owners setting up shell corporations in Montana -- specifically, limited liability corporations -- to evade paying sales tax.
For a fee that is a fraction of what paying the tax in Minnesota would be, one online company offers to help out-of-state RV owners set up a limited liability company. Along with RVs, the company says it can do the same for cars and trucks, motorcycles, ATVs, boats and aircraft.
The motor homes involved range in price from $150,000 to more than $1 million, the state said. The Minnesota tax on a $250,000 RV would top $16,000, but the tax bill in Montana would be zero.
The department warns that this scheme leaves RV owners open to gross-misdemeanor or felony charges, as well paying the sales tax, penalties and interest.
"While the majority of Minnesota residents pay taxes when purchasing a vehicle, there is a small group that isn't paying their share," Revenue Commissioner Myron Frans said in a statement accompanying details of his department's actions.
"We are investigating these tax evasion activities," Frans added, "and we will ensure that all Minnesotans follow the rules and pay the taxes that they owe."
The department declined to identify any of the Minnesotans involved in the 22 closed cases because none of them was prosecuted, said agency spokeswoman Lisa Erickson.
The department is also inviting anyone who has not paid taxes on their RV to contact its office at 651-556-6684 or visit Minnesota Department of Revenue.
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Paul "Sully" Sullivan
40' MD Apex
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11-17-2011, 12:14 PM
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#2
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Senior Member
Join Date: Jul 2010
Posts: 5,314
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Good for Minnesota! All I'm gong to say!
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Tom
2016 Newmar Bay Star Sport 3004
2021 Jeep Gladiator Sport Willys
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11-18-2011, 07:00 AM
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#3
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Senior Member
Join Date: Jan 2008
Location: Richland Wa.
Posts: 223
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I think you have already said too much.
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2007 Alpine MDDS
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11-18-2011, 06:05 PM
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#4
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Senior Member
Alpine Owners Club Texas Boomers Club
Join Date: Jan 2009
Location: United States
Posts: 1,357
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I think the point here is that those of us who pay our taxes would like to know that others pay their share also
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Michael (Home base Northern IL)
Alpine 40MDTS (gone but not forgotten)
Now Dynaquest 390XL
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11-19-2011, 04:29 AM
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#5
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Senior Member
Fleetwood Owners Club
Join Date: Apr 2008
Location: Tampa, FL
Posts: 400
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I think they've been talking on these boards for years about these LLC and the trouble they can bring. Looks like the states are hurting for tax dollars and are not going to recoup what's owed them. It has all to do with the states getting what's owed them, legally.
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Papa John & Mother Mary 2008 Fleetwood Fiesta LX, 34N
2008 Hyundai Elantra - Toad
Tampa, Florida
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11-19-2011, 05:31 AM
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#6
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Senior Member
Monaco Owners Club
Join Date: Aug 2006
Location: Ft Myers Fl / Omaha Ne
Posts: 617
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Nebraska did the same thing 3 years ago and netted a bundle. Even took a few of them to court and won.
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Chuck & Mary
2008 Monaco Diplomat 40 SKQ
2008 Enclave Toad
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11-19-2011, 06:26 AM
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#7
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Senior Member
Winnebago Owners Club Coastal Campers
Join Date: Oct 2009
Location: Marathon, Florida
Posts: 2,909
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I understand the state trying to collect as much in tax as they can since hardly anyone still has a job to pay them. Unfortunately this kind of thing will force those who can to leave their home state in search of tax relief. We are considering that with NY. That $16K mentioned in the article buys a lot of fuel and groceries.
I agree with mythplaced, no one likes paying taxes but how about we all pay the same percentage. Lets face it though, if you think you can get out of paying some and it is legit, why would you. The legality seams hazy with the LLC thing but this should be a wake up call to those considering it.
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Mark & Nancy
2004 Winnebago Vectra 40KD
Shep dog, R.I.P. Kenzie dog Toad 2015 Jeep Wrangler Willys Wheeler
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11-19-2011, 07:06 AM
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#8
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Senior Member
Join Date: Nov 2005
Posts: 7,396
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Im sorry but I focus on what I have to pay and dont spend much time worrying about what my fellow travellers are paying. If the "rule" says you can be out of state more than 6 months and qualify for an LLC--good for you. If you cheat on the 6 months-- bad for you. People will vote with their feet, not their wallet. States have to decide what is important--raising taxes or raising revenue--there is a difference.
Signed: Proud owner of a pretty expensive Texas licence plate!
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Old Scout
2015 IH45 Foretravel
2003 Alpine 40' MDTS [Sold]
New Braunfels, Texas
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11-19-2011, 09:33 AM
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#9
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Senior Member
Monaco Owners Club Winnebago Owners Club
Join Date: Sep 2011
Posts: 7,469
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If you owe it, pay it.
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US Navy Vet, Liberty Tree Member of Oath Keepers, NRA & VFW Life Member, Alaska EMT.
2009 Safari Cheetah 40 SKQ
2009 Winnebago Chalet 231CR
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11-20-2011, 03:28 PM
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#10
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Senior Member
Join Date: Aug 2008
Location: Georgia
Posts: 8,638
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Be lucky a 250,000 dollar Rv in Ga $17,500 or 7% so like sdennislee said if you owe it pay no sympathy from me.
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2007 Fleetwood Revolution LE 40V
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11-20-2011, 03:34 PM
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#11
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Senior Member
Country Coach Owners Club Solo Rvers Club iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 37,725
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Quote:
Originally Posted by Our Time
Nebraska did the same thing 3 years ago and netted a bundle. Even took a few of them to court and won.
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Washington is doing the same thing, taking them to court and winning. They were able to "pierce the corporate veil" (although in WA is a Limited Liability Company) and prove it was a tax dodge with no company business.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft, HWH Active Air
Charter Good Sam Lifetime Member, FMCA,
RV'ing since 1957, NRA Benefactor Life, towing '21 Jeep JLU Rubicon Ecodiesel
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11-20-2011, 04:06 PM
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#12
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Senior Member
Fleetwood Owners Club Ford Super Duty Owner
Join Date: Feb 2011
Location: Chula Vista, Mexifornia
Posts: 1,021
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Quote:
Originally Posted by sdennislee
If you owe it, pay it.
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Quote:
Originally Posted by Tha_Rooster
Be lucky a 250,000 dollar Rv in Ga $17,500 or 7% so like sdennislee said if you owe it pay no sympathy from me.
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Good for the State of Minnesota, I have a friend that bought a $275,000.00 Motorhome in Oregon and registered it there and brags about it, turned him into CHP, he went to his mothers house registered it her and his name, and he still gets away with it!
I am glad I live in San Diego County, Ca. and the reason is 7.75% sales tax, it's as high as 9.75% in other counties in California aka Taxifornia.
I know California is a little over bearing on things but when i walk down the street where I live to go to my mail-box and I see cars from Baja Ca. and other places that have been in my condo complex for more than a year or better I get a little (you fill it in) mad that I am paying full boar and they are cheating. Enough said before I get kick off this forum.
If We Can't Haul It...You Don't Need It ! Motor-T
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Remember "Without Truck's......America Stops" RVM129
"Take me to the Brig. I want to see the "Real Marines".
Major General Chesty Puller, USMC -"Semper Fi"
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11-21-2011, 02:26 PM
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#13
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Junior Member
Join Date: Nov 2011
Posts: 4
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I look at it like this. What if you wanted to buy a vacation house...and in your home state, taxes would prohibit you from affording it. You get to shopping around and find that you can afford your dream vacation home 4 states over because their property taxes are very low. Is that really tax evasion?
Is an RV really that much different? An RV is like the vacation home except it is not limited by physical location. You can choose your state of license based on the costs involved.
What if Montana offered no Property tax on vacation homes. Would you be a tax dodger for buying there instead of in your home state?
Jimmy
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11-21-2011, 02:30 PM
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#14
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Senior Member
Texas Boomers Club
Join Date: Jul 2000
Location: Cypress, Texas USA
Posts: 8,854
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Add Massachusetts to the list - see HERE.
Rusty
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