Is It Legal to Register a Car in Montana: Important Things You Need to Know
Is It Legal to Register a Car in Montana? If you’re thinking about registering your car in the state of Montana, you may be wondering if it’s even legal to do so. The good news is that it is legal to register a car in Montana, as long as you meet certain requirements. In this article, we’ll share important information about car registration in Montana so that you can make an informed decision about whether or not it’s the right option for you.
Is It Legal to Register a Car in Montana?
Is it legal to register a car in Montana? First, let’s clarify this question.
Intentionally tampering with, falsifying, or forging car registration, or license plates is a crime at the federal and state levels. It is a serious crime, often known as “the wobbler offence,” to provide a false address for the sake of receiving government benefits. You might be fined up to $10,000 and put in jail for this misdemeanor.
Establishing a limited liability Company (LLC) in Montana, having that LLC buy you a new automobile, registering the car in Montana, and then driving it in another state are all totally legal. Of course, there’s more to it than that, so before doing anything like that, the majority of automobile owners get legal advice from a qualified attorney.
How to Legally Register a Car in Montana?
Establishing a limited liability business (or “shell”) is required before one can lawfully apply for a Montana car registration. A “shell” firm is a corporation that exists only on paper and does not conduct any real activity.
The formation of a shell company in and of itself is not unlawful, but the use of such a company to hide criminal activity or the identities of the company’s owners from authorities is. A legitimate shell business is used to shield the owner’s assets, such as a brand new car, from potential creditors.
There are valid reasons why individuals create shell corporations, and they have nothing to do with registering cars in other states. Its owners may benefit from reduced tax liability, expanded access to international markets, and anonymity.
If you want to create a shell corporation, you’ll need to think of a firm name and register it with the appropriate authorities in Montana. Then you can register your car under Montana LLC.
To register your car, you need to get a license plate. The cost to get Montana plates is very affordable. Visit the local county treasurer’s office to get a license plate. You will need to pay license plate fees and any other applicable registration fee to the Vehicle Services Bureau of the Montana Department of Justice.
Why Should You Register a Car in Montana?
Since there is no sales tax on Montana vehicle registration, the Washington Post has named it the “best state” to do so. You can avoid paying sales tax by registering your car in Montana. If someone wants to buy a Ferrari LaFerrari Aperta, for instance, they won’t have to pay sales tax on the transaction. So, the car registration fees in Montana are very low.
It’s widely known that big metropolitan areas like New York City, Los Angeles, Chicago, and Seattle have prohibitively high sales tax rates. Such a levy may add thousands to the final cost of a high-end automobile.
For illustration’s sake, let’s say you just moved to the busy city of Seattle, Washington, where the current sales tax rate is a staggering 10.25%. You’ve decided it’s time to reward yourself, so you drop $2.2 million on a brand-new Ferrari LaFerrari Aperta.
You’d be looking at an additional $225,500 in sales tax, bringing the grand total to $2,425,500. We realize that’s an extreme case, but perhaps you can see how sales tax may add up quickly.
It’s easy to see why motorists would look for ways to avoid paying this price whenever feasible; fortunately, the state of Montana does not impose a sales tax on vehicle registrations. So, you need to pay fewer vehicle registration fees.
Montana is a tax sanctuary for homeowners and motorists since it is one of just five states that does not levy a general sales tax. If you reside outside of the state, you probably won’t notice that the state gets its money from affluent landowners and energy companies.
Some Montana officials and Montana citizens have voiced disapproval of this perk. Some lawmakers in Montana tried to enact a tax measure in 2017 that would have applied only to motorists who resided in other states. The proposed legislation would impose a sales tax range of 0.08 percent to 1 percent on owners of luxury vehicles with a value in excess of $150,000.
However, a committee of Montana lawmakers chose to drop the proposal after hearing fierce opposition from auto and recreational vehicle businesses. There is currently no valid regulation in Montana that prevents individuals from acquiring a vehicle elsewhere and registering it in the name of a shell corporation located within the state.
No Inspection Cost
When discussing hefty charges, it is important to note that Montana does not mandate yearly vehicle inspections or emissions testing. The Clean Air Act of 1990 established mandatory rules for vehicle emissions in an attempt to reduce air pollution in the United States.
Unfortunately, this law was lifted from Montana. The Emissions Organization states, “At the present moment, Montana does not have any vehicle emissions test requirements due to the absence of any inhabited regions in the state that are classified by the federal government as ‘non-attainment’ status for satisfying the Clean Air Act’s air quality restrictions.”
Inspection costs may add up quickly, costing $300 or more (and that doesn’t even cover everything that has to be inspected) for those who drive premium vehicles. Furthermore, as this testing is mandated yearly in most jurisdictions, you should factor in the additional expense associated with doing so while buying a vehicle.
By eliminating this requirement, Montana automobile owners are spared the expense of periodic auto emissions testing, an added bonus to the cost-effectiveness of registering a vehicle in the state.
Here’s How 5 Star Registration Can Help You to Register a Car in Montana
Registration of a vehicle in Montana requires many stages to be completed. It’s possible that registering a vehicle for an inexperienced person in Montana may be a time-consuming and frustrating process.
Save time and money by seeking the help of the experts at 5 Star Registration to have your vehicle registered in Montana. They will handle the paperwork required to register your car and get a Montana license plate.
Is It Legal to Register a Car in Montana: Conclusion
In short, it is legal to register a car in Montana, as long as you meet all the requirements. Keep in mind that vehicle registration renewal is required each year. However, permanent registration of a vehicle is possible if it is 11 years old. Permanently registered vehicles don’t require annual renewal. If you’re interested in registering your car in the state, be sure to consult with experts to avoid any legal trouble.
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