The Montana LLC Loophole: How States Are Fighting Back Against Out-of-State Title Schemes

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All right, here we go again with some more info. Another example of where out of state titling and registration is becoming enforceable. So, a lot of times people think if they want to register their car in another state because it's easier or cheaper or want to evade something in their state, they can get away with it. Uh, one of the most common methods right now is the whole Montana LLC loophole. In the past, it was Vermont, but states are catching on to this.

And here's an example where in one city in Connecticut, Bridgeport, it's not a big state. It's one of the larger cities in Connecticut, but in one month of doing a crackdown, they found 5,000 vehicles that were registered out of state. And those people got fines, penalties, some vehicles got seized.

So, how do they do this? Well, we've talked about this in other videos. Now, it's easy for them to do it. In this case, they've hired a private investigative agency, a private company to do what's called ALPR, automated license plate readers, where they have cameras that are all over town on cars driving around, on um stop signs, on street poles, in parking lots that are recording license plates thousands and thousands and thousands per minute. and it goes into a computer system and they determine if there's an out of state plate, it flags it.

Now, to be fair, if you're on vacation visiting, they're not going to flag you for being out of state. But if they see that same license plate over and over and over every day going to the same parking lot at 8:30 in the morning or every day driving down the same street, they know you're not on vacation visiting your, you know, Aunt Sarah. They know that you've lived there and you're evading the state rules.

So, what they're going to do, you will be back in your video in just a few seconds. In the meantime, remember that actualhum.com offers you live one-on-one private video consultation with an expert in this exact subject. We want to listen to your story. We want to hear your questions. We want to give you expert advisement of your options and tell you what we know about your particular situation.

Now, back to your video is going to look up that plate, find out who the owner is, then they're going to do research on does that owner have connection to Connecticut, and they're going to send you a summon. How do they do all this? They start out with a ultimate goal to identify people who are failing to pay local car taxes because their wheels are not correctly registered in this city.

And this is something in Connecticut that happens a lot because of sales tax. People want to avoid sales tax. Per Connecticut law, anyone who moves from or purchases a car from another state has 90 days to register and they have to get their taxes paid. If you are already living in Connecticut, then 90 days started when you first move there. It doesn't start when you buy your car. In most cases, there are lots of households that have not done so. in some cases might be cheaper to remain registered elsewhere.

Remember the tax is not just a sales tax. It's called a sales and use tax. So if you use the vehicle in another state, then you have to register it there. That's why you see on large 18-wheeler trucks what's called apportionment plates where if the truck is used in a lot of different states, they apportion the taxes among the different states. So if you use your vehicle primarily in the state where you reside, you have to pay taxes there. even if you bought it somewhere else, even if you registered it somewhere else.

So, make sure that you're not getting caught up in one of these things because they're going to penalize you. And if they find out that you did this for some other purpose, like to evade registration or inspection or title documents, they might even have other penalties besides just the taxes and the interest and the and the uh the fines that go on top of it.

If you like this video, be sure to click on a few others on our channel to see if there's other information that might be helpful to you about this same subject or me maybe even other related subjects that could assist you with your resolution of your issue.

The Montana LLC Loophole: How States Are Fighting Back Against Out-of-State Title Schemes
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