A new rule for recreational vehicles was inserted in a catch-all bill approved last week by Iowa legislators, according to a report by Radio Iowa. Sen. Tod Bowman, D-Maquoketa, says it’s a crackdown on tax evasion.
“What this will do is close the loophole by addressing a sham or a shell fake (limited liability) corporation specifically being in place in the state of Montana,” Bowman says.
“We’re talking about million-dollar RVs or luxury vehicles that are being registered out-of-state, but they’re being driven in the state of Iowa, they’re maintaining residence in the state of Iowa, but they’re getting through this loophole and not paying their user fee.”
Montana does not charge sales tax, so people around the country have set up corporations in Montana to avoid paying their home state’s sales tax on the purchase of expensive motor homes. Bowman says some Iowans are using that loophole.
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