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Old 12-11-2017, 05:15 PM   #1
Aly
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Best State for Sales Tax (of states without state income tax)

I'm choosing a domicile state and will switch states first and then pay the sales tax on my new Escape 17B second. Has anyone researched which is lightest on the sales tax for a trailer: South Dakota, Texas or Florida? That would be assuming I used one of the address-and-forwarding outfits, so it would be the total town, county & state sales tax on a trailer for that particular place.
I would like to choose the state that takes the smallest bite for licence and registration, both initially and on an ongoing basis. I bet someone has figured out the cheapest state & address service. Anyone know the answer?
If the answer has been posted elsewhere, could someone direct me to that thread?
Thanks so much,
Aly (who has 220 more days before her 17B is ready)
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Old 12-11-2017, 05:24 PM   #2
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Delaware has no sales tax either, but you need to pick one for your domicile. Also some states only tax you on the difference, for example only the increase in basis is taxable, thus if you sold one and then bought another you may be able to defer the original cost of your old one. It varies state by state. Ever wonder why a lot truck tractor trailers are registered in Maine, low renewal fees, another issue. Someone mentioned today that California has no renewal fees for rv trailers? Also what sate is on your Escape paperwork? that may throw a kink in transfer later?
I dealt with federal and state taxes for a career and what is good in one can bite you in another. Here is a start https://www.msn.com/en-us/money/taxe...ees/ss-BBF2rZP
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Old 12-11-2017, 05:32 PM   #3
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The 17B wont make CA permanent trailer registration because it has to be <16ft
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Old 12-11-2017, 05:37 PM   #4
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https://www.google.com/amp/s/rv-road...lltime_rv/amp/

If I could pick any state as residency as a full timer, it would probably be one of four:

Nevada
South Dakota
Texas
Wyoming

But, if you are a legal resident of Montana, there is NO sales tax. That alone might make a change of legal residency worth it, considering the high sales taxes in other states.
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Old 12-11-2017, 05:46 PM   #5
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My choice of residency is determined by friends , family and history, not by taxes !
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Old 12-11-2017, 05:51 PM   #6
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My suggestion is to query up "best states for retirement" or "best states for early retirement" depending on your situation. But the list below plus Florida is a good start.

Nevada
South Dakota
Texas
Wyoming
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Old 12-11-2017, 05:52 PM   #7
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My choice of residency is determined by friends , family and history, not by taxes !
Yes of course, but this is about full timers. They may pass through all fifty states in a calendar year. They aren't tied to a domicile like you or I. I'm proud of my state of legal residency, and I love it here. But if I were full timing and didn't spend alot of time here, I would consider it completely appropriate to look at the tax advantages of perhaps changing my state of residency.
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Old 12-11-2017, 06:01 PM   #8
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RVs & Motorhomes

Registering your Florida recreational vehicle is the same process as registering any standard car or truck. Visit our page on Car Registration in Florida for details.
Titles Not Needed For...

Florida titles are not required for the following:
  • Slide-in campers.
  • Modular homes.
  • Add-a-rooms.
  • Port-a-rooms.
  • Trailers weighing less than 2,000 lbs.


So you will pay tag, title and tax of at least 6% to register in Florida.
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Old 12-11-2017, 06:04 PM   #9
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Yes of course, but this is about full timers. They may pass through all fifty states in a calendar year. They aren't tied to a domicile like you or I. I'm proud of my state of legal residency, and I love it here. But if I were full timing and didn't spend alot of time here, I would consider it completely appropriate to look at the tax advantages of perhaps changing my state of residency.
I'll rephrase my answer , taxes have never been a motivating factor for me . I am a proud resident of the State of Minnesota and gladly pay taxes to my home state. As I said all my friends ,family and history are there . Others may not feel loyalty to anything and I wish them well
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Old 12-11-2017, 06:07 PM   #10
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Originally Posted by cpaharley2008 View Post
...Also what state is on your Escape paperwork? that may throw a kink in transfer later?
I live in Colorado now and that's the state listed for my order. I don't know how far in advance I would have to switch domicile states to have the new state in effect--that's a really good point.
Colorado has relatively low state sales tax, but with my city & county taxes, I think the total is 7.5%. When I bought my used Casita 2 years ago, I was surprised by the tax bite when I registered it. Now that I'm leaving Colorado to live on the road full time, I know to take sales tax into consideration when choosing a domicile state.
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Old 12-11-2017, 07:34 PM   #11
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I know taxes are the focus here and this might not pertain to you......but, if you're under Medicare age I'd also consider available health insurance in your domicile state if you are full-timing.
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Old 12-11-2017, 07:35 PM   #12
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One big part of the full time domicile evaluation is what you have to be present in the state for to accomplish. This is normally where SD comes out on the top of many lists as many of the tasks that one must tend to every year do not require a physical presence in the state.
Here is a good starting point to begin evaluating your situation
http://rvlife.com/best-states-for-fu...ver-domiciles/
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Old 12-11-2017, 08:09 PM   #13
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No help

As usual Im no help here except to note that we camped in Kentucky a couple nights next to a Prevost motor home that was registered in Montana. The owner had his actual home in southern Indiana. Id learn about Montana.
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Old 12-11-2017, 08:16 PM   #14
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As usual Im no help here except to note that we camped in Kentucky a couple nights next to a Prevost motor home that was registered in Montana. The owner had his actual home in southern Indiana. Id learn about Montana.
Dave
A whole cottage industry has sprung up around helping RVers set up residency in Montana, or form an LLC there. The main reason is there's no sales tax. If you're talking about a 1.5M Prevost, we are talking about ALOT of money.

I looked into it a few years back and determined that while it was perhaps "legal", it was a pretty obvious/shady method to dodge your home state taxes.

I don't see that in the same way I see full-timing, where your state of actual residence can be anywhere you like, and you don't spend a significant amount of time in your "home" state.
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Old 12-11-2017, 08:25 PM   #15
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Prevost

Hi Robert
Yes this old boy was set up pretty good. I had little doubt he was a loophole LLC scoundrel.
Nice guy though. We were in the horse country at Lexington. Had all of his horse tack on board to get it repaired by someone he considered the best in the biz. Retired design engineer from Pontiac Division of General Motors. I believe he had the $$$$$. His run around car behind the Prevost was a Lexus. The tax in Iowa on a Prevost would pay for a new 19.
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Old 12-11-2017, 08:39 PM   #16
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I'm looking at domiciling elsewhere also. Do your research. Montana fully taxes social security, Arizona has personal property tax as well as high sales taxes in some areas, etc. With full-time RVing I'm more concerned about what the state claims on me, i.e. income tax, etc regardless of how much I'm there. You're state sales tax isn't an issue if you don't have large purchases and are traveling elsewhere most of the time.
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Old 12-11-2017, 08:55 PM   #17
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Quote:
Originally Posted by Iowa Dave View Post
The tax in Iowa on a Prevost would pay for a new 19.
Dave
But, but...you don't have to buy one. You can rent the Prevost LX EW for only $3,300 a day. Or save by renting it for a month for only $66,000. Now that's "affordable luxury" as the ad says.

Edited: I just noticed that the LX EW is pretty low slung so one couldn't take it off road. Nuts.
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Old 12-11-2017, 09:21 PM   #18
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Quote:
Originally Posted by Aly View Post
I'm choosing a domicile state and will switch states first and then pay the sales tax on my new Escape 17B second. Has anyone researched which is lightest on the sales tax for a trailer: South Dakota, Texas or Florida? That would be assuming I used one of the address-and-forwarding outfits, so it would be the total town, county & state sales tax on a trailer for that particular place.
I would like to choose the state that takes the smallest bite for licence and registration, both initially and on an ongoing basis. I bet someone has figured out the cheapest state & address service. Anyone know the answer?
If the answer has been posted elsewhere, could someone direct me to that thread?
Thanks so much,
Aly (who has 220 more days before her 17B is ready)
If anyone knows I bet it is the Escapees RV Club that assist and advocate for full-timers. Some articles here are related to your questions:
https://www.escapees.com/articles-an.../finance-legal

I ran into some part-time full timers when camping in Hershey this summer. I think they had a small house in a Texas, but they traveled extensively. When I questioned them on their South Dakota license plate she said something about forming an LLC and no sales tax on their new truck.
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Old 12-11-2017, 09:24 PM   #19
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In Montana once the trailer is registered, that is it. No yearly fee after that . I don't know if it's the same for cars.
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Old 12-11-2017, 09:44 PM   #20
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How many

Quote:
Originally Posted by KarenH View Post
But, but...you don't have to buy one. You can rent the Prevost LX EW for only $3,300 a day. Or save by renting it for a month for only $66,000. Now that's "affordable luxury" as the ad says.

Edited: I just noticed that the LX EW is pretty low slung so one couldn't take it off road. Nuts.
To get this thing to cash flow as my old boss would say, at $66.000 a month wed have to split the rental among more folks than the Prevost would haul. I mean, wed have to tow a boxcar for the extra people and take turns riding up front. There was a fraternal organization here that always sponsored a fast pitch softball team. They were called 40&8. It was from WWI. 40 men or 8 mules per boxcar. Look theres a squirrel!!! Consider this thread properly drifted.
Iowa Dave
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