Massachusetts targets RV tax evaders
The Massachusetts Inspector General is going after RV owners who are "defrauding" the system by registering their vehicles in another state to avoid paying sales and other taxes.
According to WFXT-TV, the state Inspector General Gregory Sullivan has already identified 23 RVs owned by Montana companies and registered in Montana when they should be registered and taxed in Massachusetts.
Apparently, RV owners set up a limited liability company in Montana, and use that company to buy the RV and register it in Montana, which has no sales or excise tax. The scheme, which is well-known in the RV industry, can save buyers thousands of dollars in sales tax up front and thousands more each year in excise tax.
"This is a tax fraud rip-off scheme," Sullivan told WFXT-TV. "The victims are the other taxpayers in Massachusetts."
Officials point out that all vehicles driven more than 30 days in Massachusetts must be registered in Massachusetts.
Sullivan also says that Montana's corporate secrecy laws make the job of tracking down individuals who are defrauding the system nearly impossible. He says the 23 owners his office has identified is most likely the tip of the iceberg.
"The information is blocked from our view. Montana won't give it up. You can't get information from the system. They set it up that way and I think it's despicable, frankly."