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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 110442
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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We are in the process of buying an RV fifth wheel trailer in

Customer Question

We are in the process of buying an RV fifth wheel trailer in Indiana, and have a question about sales tax. The price of the trailer is about $50,000. We currently own a house in Tucson AZ. We will be moving into the fifth wheel and living in it full time for many years. We will not be living in our Tucson house again. We will either be renting the Tucson house or selling it. We would like to establish residence in some other state, but this will take anywhere from a few months to a year. We may be buying a property in another state and building a cement slab for the RV. We plan to buy the trailer mid May 2013, and have 30 days to obtain license and registration. The trailer will have a temporary plate. Since we will not be living in our house in Tucson, do we need to pay the AZ (Tucson) sales tax? Some people use a Montana LLC to buy the trailer but we don't know if that is legal. Can we get a license plate from some other state that has lower sales tax? We are not sure what to do. Thanks.
Submitted: 3 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 3 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Many people use Montana for their RV registration to avoid the sales tax. Actually, Montana is pretty much the only one that has no sales tax AND allows a Montana entity to register the vehicle. There are other states with no sales tax ( Alaska, Oregon, Delaware, and New Hampshire) but they all require you be a resident of the state with a drivers license from that state, while Montana states any entity can register the vehicle, which is why so many people use Montana for their RV and it is perfectly legal.

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Customer: replied 3 years ago.

Hello Paul. Thanks for your reply. I want to be sure that I do the right thing here. You're saying it is perfectly legal to have a Montana LLC buy the RV with no sales tax to my current state of residence (Arizona). Does the "perfectly legal" apply from the state of Arizona point of view? In other words, it may be legal from Montana point of view, but will I be safe in Arizona? Take a quick look at the following website, which gives me pause. If you read the article and still believe it is legal, then I will close out the reply and forward the money to Thanks.

Expert:  Law Educator, Esq. replied 3 years ago.
Thank you for your follow up.

I understand you want to do the right thing and do not want to get in trouble. If you are selling your home in Arizona as you said and you form the LLC in Montana to take ownership of the vehicle it is indeed legal in Montana and it has to be recognized in Arizona and every state. If you have an Arizona address and try to do this, no it is not legal, but having a Montana LLC owning the vehicle is indeed legal and permissible.

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