Ever wonder why most exotic cars you see have license plates from Montana?
These exotic car owners pay $0 in sales tax. A tax haven once hidden by the rich, has now become available for everyone.
Let’s say you’re buying a $30,000 vehicle in California. Your tax rate is 7.25% so you’re paying $2,175 in taxes and about $800 to register your vehicle.
In Montana, there is NO TAX and registration fees are a fourth the cost.
Tax advisors of the rich have been using this strategy to buy bugatti’s, lamborghinis, and even jets.
Can you believe the sales tax and registration fee on a lamborghini is less than your Honda? Now you’re probably thinking… How is this legal and has this been upheld in court?
Most people save up to $10,000!
Montana is the only state that imposes no sales tax on the purchase of a vehicle by its residents including resident LLCs. Since you most likely don’t live in Montana, using a LLC that we setup owned by you, you get to utilize this tax savings.
In the case of Thomas v. Bridges, 2013-C-1855 (Sup.Ct. LA May 7, 2014), The Louisiana Department of Revenue found out about the car purchase and claimed that the buyer personally owed the state over $30,000 in sales taxes, and tacked on an additional $16,000 in fines and penalties. The Louisiana taxpayer fought the tax assessment all the way through the Louisiana Supreme Court, where he was ultimately victorious. The court held that he had formed a valid LLC under Montana law. The fact that it was formed solely to avoid sales tax on a motorhome purchase did not make the LLC invalid under Montana's LLC law, according to the court.
And you don’t have to file taxes on this LLC because it is a single member pass through entity.
This completely legal way to register and purchase your vehicle is now available for anyone!
Want to see how much you could save?Let’s find out!