Estimated read time: 1-2 minutes
SALT LAKE CITY — Some Utahns are using a loophole to register their cars, trucks, and SUVs out of state so they can pay a whole lot less, according to a recent presentation to lawmakers,
Last year, one man told KSL-TV he had saved over $8,000 by registering his two cars in Montana, where they do not have sales tax on vehicles. And it's not just Utah drivers getting their plates from Montana — Utah boaters are doing it, too.
The Utah Division of Outdoor Recreation estimates that 10% of boats owned by Utahns are registered out-of-state. That means Utah is losing $500,000 a year in fees, $1.6 million in property taxes – not to mention tens of millions of dollars in sales taxes – according to the state's outdoor recreation division.
Boat program manager Ty Hunter said some Utah OHV owners are also getting Montana registrations, calling it "cheating."
The registrations are done very much in the same way car and truck owners do them. Utahns set up a shell company, an LLC, in Montana. Then, the boat or OHV becomes the property of that Montana LLC.
While it does save money on taxes, Hunter said the law is clear: Owners must register Utah as their primary residency.
Boat owners caught doing this might find themselves up the creek without a paddle — or, more to the point, without a boat since it might get impounded and won't be released until state taxes are paid and settled in court.
Hunter said Utahns registering their boats out-of-state deprive Utah of money used for many things, such as maintaining ramps, docks, and buoys, as well as public safety and search-and-rescue efforts on the water.
He said he hopes Utahns will choose to do the right thing rather than be forced to do it.
