Massachusetts continues crack down on RV tax evaders
State officials in Massachusetts are continuing their quest to find RVs garaged in the state that have avoided paying sales and excise tax.
Starting last month, the state inspector general's office announced it had found more than 30 RVs being stored in Massachusetts that were registered to limited liability companies (LLC) in Montana.
It turns out that some owners have been creating LLCs in Montana for about $1,500 and then purchasing their motorhomes through them in order to avoid paying taxes in Massachusetts.
"It's discouraging to see a state set up something like this, which is basically a way to shelter tax evasion," Bob Bliss, spokesman for the Massachusetts Department of Revenue, told the Patriot Ledger newspaper.
The newspaper reports that the Department of Revenue has already collected approximately $138,000 of the $250,000 in bills it had sent to 30 Massachusetts residents who had used LLCs to avoid paying taxes. The department has another $150,000 worth of bills not yet sent out as well.
Once the offenders are identified, the Registry of Motor Vehicles will start to notify local communities to begin assessing local excise taxes on the offending RVs. Some local officials say the extra income is critical in these lean economic times.