What is the Big Reason Many Supercars Are Registered in Montana?
I wish I owned a supercar; I'd probably show it off more than I actually drove it. And I'd love the rush of going super fast in a Lamborghini. It turns out there are a lot of supercar owners in Montana. Kind of. You see, they don't actually live in the Treasure State, but their cars are registered here. Why do you think that is? The overwhelming answer is easy to answer; financial gain.
No Taxes Seems Like a Good Thing
People who live here, as well as some people who don't, know that there is no sales tax on personal property in Montana. So, buying a car here wouldn't incur extra charges. Montana also doesn't have a vehicle inspection law, so if you register a vehicle here, you won't need to go through those inspections that would charge for emissions and smog.
You don't even have to come to Montana to do all of this and save money; most people do it through LLCs, which can do all the hard work for you. Legislation was introduced that applies a sales tax to more expensive automobiles, titled the "Ferrari Tax," which was passed on May 11, 2017, just to try and slow down out-of-state buyers.
This Doesn't Seem Legal
It may not seem right, but as long as the LLC was formed the proper way, it's completely legal. The loophole does carry a risk of legal trouble if you were to be audited for dodging sales tax in states that have it. It all depends on whether you want to risk it for a cheaper car.
What do Montanans think about this practice? Is it immoral or illegal? Let us know on social media.