Vehicle Registration
What is Vehicle Registration?
Vehicle registration is a crucial requirement for all vehicle owners regardless of the state where the vehicle is being registered. It is a process that involves obtaining an official license plate and registration certificate for your vehicle. It is not required that the vehicle be registered in the state in which you reside. Whether you are adding a new vehicle to your collection or registering an existing one, the process can be quite easy if you are working with TaxFree RV.
Title the vehicle in Montana first!
If you are registering a new vehicle, there are ways to save a significant amount of money by titling and registering the vehicle in Montana. If you contact TaxFree RV prior to purchasing your vehicle, we can help you set up a Montana LLC which can then be used to purchase the vehicle. By titling the vehicle in Montana, you will not have to pay any sales tax. This can be a savings of tens of thousands of dollars for a high-end car, a truck, or a recreational vehicle.
Once the vehicle is titled in Montana, it can also be registered in Montana. To register a new vehicle, you will need to provide documentation such as the title and proof of insurance. When you work with TaxFree RV we will walk you through each step, collect the relevant documents and take care of everything. Once registered, you will receive license plates and a registration certificate indicating the vehicle’s ownership.
Savings
Let’s look at what this process means for you. As of August 2022, the American Association of Retired Persons has found that the average combined state and local sales tax across all U.S. states is 6.57 percent. This does not include city, county or municipal charges in some states. So, let’s say you are buying a Class C recreational vehicle (RV). A Class C RV can cost as much as $140,000. This means an average tax bill of more than $9,000 on top of the $140,000 you are already paying. A high-end RV can cost even more. Do you collect high end cars? The retail price for a Ferrari Roma or Portofino is around $250,000. Average sales tax is $16,425! That is enough for a very nice vacation to Europe. Wouldn’t you rather have that additional money for other things, like maintenance and upkeep of your RV, getting additional upgrades or a nice vacation?
The sales tax issue is not just for individuals either. Maybe you have a business that requires a fleet of vehicles such as cars or trucks or vans. Let’s say you are buying the Nissan NV200 van, the most reliable van out there. The Nissan NV200 costs an average of $25,000 and approximately $700 a year to maintain as a commercial vehicle. If you buy 5 of these for your business your sales tax will be $8,200 on average. By titling and registering those vehicles in Montana, you would save enough to pay for the maintenance on all 5 vehicles for more than 2 years!
So why register in Montana?
You can see the benefit of titling your vehicle in Montana, but why is registering it in Montana so helpful?
After titling your vehicle in Montana, you will also be required to register it annually in Montana. A vehicle registration plate, commonly known as a license plate, is required for every vehicle for identification purposes. Motor vehicles cannot be legally driven if registration is expired. Title fees are generally incurred as a single, initial expense when the owner buys the vehicle for the first time. License plate fees are typically charged on an annual basis and can vary depending on the state. Different states have different methods of assessing registration fees. For example, Colorado and Utah base registration fees on the weight of the vehicle, although Colorado will reduce the fee over time based on the age of the vehicle. Michigan uses the MSRP while Iowa uses a combination of the MSRP and the weight of the vehicle.
Montana does not use any of these methods. Instead, the cost of RV registration in Montana is a flat fee based primarily on the vehicle age and vehicle type. For example, for a new RV with a model year in the last 4 years the registration fee is $217 a year. The cost goes down over time. For an RV with a model year in the last 2 years the cost is only $282.50! Compare that to what it would cost in Colorado – a $250,000 RV will have an ownership tax of 2.45%. So the initial registration fee will be $6,125! That combined with the average sales tax of 6.319% = $21,922. If you register and title it in Montana instead you will pay less than $300. That is a savings of $21,622!
If the idea of saving this much money appeals to you, don’t wait, contact TaxFree RV today!
Types of Vehicles
In Montana, vehicle registration is necessary for all types of vehicles, including commercial vehicles, light vehicles, motor homes, pickup trucks, and recreational vehicles. The registration process involves submitting an application, providing proof of insurance, and paying the required fees. Fortunately, you will not have to do any of this yourself. Once you hire TaxFree RV, we take care of everything. We give you all the information you need and walk you through the process. We will get your new vehicle titled and registered. After the initial registration we can take care of the annual registration for you. We do this all for one low price and with outstanding customer service.
Light Vehicles
Light vehicles in Montana, including cars, motorcycles, and pickup trucks, must be registered with the state’s motor vehicle department. The registration process requires the vehicle owner to provide proof of insurance, proof of ownership, and a completed vehicle registration application.
Overall, Montana’s vehicle registration process for light vehicles is straightforward. When you work with TaxFree RV it is even easier. We take care of everything, including the paperwork! If you are thinking of purchasing a high-end vehicle and want to save tens of thousands of dollars, contact us first, and let us show you how working with TaxFree RV benefits you!
Commercial and Heavy Vehicles Registration
Commercial and heavy vehicles include those vehicles such as buses, heavy trucks and truck tractors. The fees vary according to the Manufacturer’s Rated Capacity—the manufacturer’s rated gross vehicle weight for a bus or heavy truck or the manufacturer’s rated gross combined weight for a truck tractor. Fees for heavy vehicles are based on the age (model year subtracted from the current year) and rated capacity of the vehicle.
The good news is, even for the heaviest trucks (over 55,000lbs gross vehicle weight) when they are brand new, the registration fee is only $375. This means that the most expensive registration you will pay for a tractor trailer will be less than $450 (including additional administrative fees). That is crazy low!
Just like with light vehicles, we take care of everything. So don’t pay crazy sales taxes or registration fees! Contact TaxFree RV before you buy the truck or fleet for your business and let us save you a ton of money!
Boat Registration
Are you considering getting a boat? Perhaps you love fishing and are considering getting a pontoon boat. The average cost of a pontoon boat is $41,000. A luxury pontoon boat can be $75,000 or more. If you buy a boat in California, you may have to pay more than 10% in state and local sales tax!
Just like cars and trucks, boats must be registered. Typically, boat registration requires displaying the assigned number and current use sticker for the state in which the boat is titled. You should also be sure to carry your boat’s registration paperwork on board.
Recreational Vehicles
Recreational vehicles (RVs) are a popular choice for adventure lovers and those looking for a home on wheels. In Montana, the registration process for RVs follows a similar procedure to other vehicles.
When registering an RV, whether it is a motorhome or a towable trailer, normally the vehicle owner is responsible for completing the process. This involves submitting the necessary paperwork, such as proof of ownership and a valid drivers license, to the Motor Vehicle Department. In addition, owners of RVs are required to provide proof of insurance coverage that meets the state’s minimum requirements. This is necessary to ensure that the vehicle is adequately protected in the event of an accident or damage.
Of course, if you are working with TaxFree RV, you won’t have to deal with any of the titling and registration processes in Montana. TaxFree RV will be your registered agent. We will take care of everything. You won’t have sales taxes, or vehicle inspections, or emissions tests and your registration payment will be minimal. Annual renewal fees will be handled as well.
Motor-home owners pay a fee in lieu of taxes, based on the age of the motor home. The age is determined by subtracting the model year from the current year. TaxFree RV will take care of your annual registration. Since we are doing it for you, when the registration is coming up (12 months from the month in which it was first registered) we will let you know and get you your new tags. With TaxFree RV working for you, you will never have to worry about having expired tags. Contact us for more information before you buy your new RV!
Application Requirements
To register your vehicle in Montana, there are certain application requirements that need to be fulfilled. Most importantly, titling and registering a vehicle in Montana requires a physical address in Montana. Hiring TaxFree RV takes care of that as we are physically located in Montana and can act as your agent for all vehicle titling and registration purposes.
TaxFree RV is an expert in all types of vehicle titling and registration requirements in Montana. When you hire TaxFree RV as your registered agent in Montana, we will walk you through all the steps and processes so you will know what you need to provide to us, so your registration runs smoothly. Going forward we will take care of all annual registration requirements, so you don’t even have to think about it.
Since TaxFree RV will be taking care of all the application requirements and paying the appropriate fees, you can successfully register your vehicle in Montana and enjoy the savings from being a vehicle owner in the Treasure State.
Limited Liability
When you work with TaxFree RV, they will form a Montana limited liability company (LLC) to be the owner of whatever type of vehicle you are purchasing. One of the advantages of using an LLC to purchase your vehicle is limited liability. An LLC is a distinct legal entity separate from its owners or members. This means that there is a limit on the extent to which the owners or members can be held personally liable for anything the business does, including its debts or liabilities. This can include accident liability. If you would like to know more about this, contact TaxFree RV today!
