No Sales Tax? - RV-Dreams Community Forum

RodnReal · RV-Dreams Family Member

No Sales Tax?

Tom Donaldson · RV-Dreams Community Member

I believe that the sales tax is based on where you register the RV rather than where you buy it. I think legally you can only register your RV in the state in which you claim domicile, pay taxes, etc.

In the past few years there has been a crackdown on dealers/buyers who register RV's in states in which the buyer does not have domicile just to avoid taxes. I know that some Washington and California dealers/buyers got hefty fines (or worse?) a couple years ago for registering vehicles here in Oregon. Then, in addition to any fines, the buyers had to pay sales tax in their home state anyway.

So: if you want to register a RV in a state with no sales tax, you should establish domicile in that state.

RodnReal · RV-Dreams Family Member

Thanks for replying Tom. That's been my understanding about it also. I went back and checked the ads again and I think they are talking about setting up a LLC. I guess it's supposed to work like large ships that are all registered in foreign ports to avoid US taxes.

tumwatergal · RV-Dreams Family Member

While traveling this past summer, we saw several vehicles that had Montana plates on the RV but plates from a different state on the toad. They registered in Montana to save the sales tax and established an LLC for that purpose. We are residents in WA and they are really hitting folks hard with this situation. We want to stay as residents of WA even though we fulltime and we want all of our documents to have the same address and state listed. That means our motorhome and toad have same state plates and our proof of insurance shows WA, likewise our driver license with WA indicated. We bought the RV in Arizona but got a trip permit to come back to WA and register here and pay the sales tax rate for WA. We just don't want trouble with the law and feel it best to keep everything the same. (IMHO that is)

Cindy T · RV-Dreams Family Member

Here in Colorado they've recently really cracked down on people who have done this. The government has gone after them & it's not been a good situation for the people who were trying to avoid paying taxes.

RodnReal · RV-Dreams Family Member

I'm going to look into it some more. I don't mind paying taxes but if it's a legal way to avoid them I don't see anything wrong with it. My philosophy has always been to use a tax consultant that has a stack of pending hearings with the IRS over one who has never had to have a hearing. I want the guy who is on the line rather than the one who stays way on the safe side by giving the government other peoples money.

tigerlilly108 · RV-Dreams Family Member

http://law.findlaw.com/state-laws/tax-law/

This is an excellent website to find information on all legal issues concerning anything legal --- including sales tax laws by state. It also has forms available .... Hope this helps answer some questions.