How does the city find out about one’s residency status to even audit someone? Nosy neighbors?

 

Pay records and other items. There are lots of ways.

The question here is what do you need in order to register a car in OR? Do you have to have an OR license? I'm sure you need an address, but if you could legally register the car in OR you will would pay based on OR rules (i.e. 0%). If you can't do that then you may have to register in NY or find somewhere else you can register without a local drivers license.

 

OP-

Plenty of suspect info in this thread. Your residency and your driver's license generally do not establish the tax you will pay on a vehicle. Every state has slightly different rules, but in general the tax on a vehicle is based upon where the vehicle is registered. People play a lot of games registering a car in one state (i.e., a state with a favorable tax), when in reality, the vehicle should have been registered (and taxed) in a different state where the vehicle actually lives. It is entirely a registration game. For those that play these games, it boils down to whether or not one gets caught. Many don't as it's not always easy to police and enforce these things. In the tax world, we call this "audit lottery". Generally not advisable, but that is a personal decision.

In your case, if the vehicle will really live in Oregon, you should be able to register it there without bending, much less breaking, any rules. If the car never comes to NY, it is irrelevant that you are personally domiciled there. NY has no interest in the car upon which to levy a tax. You might need to look at the Oregon rules on what is required to register a car there and what you can use as the Oregon registered address. I suspect you might need an additional Oregon connection such as an LLC or other entity. Quick call to the Oregon DMV will probably get you the answers, assuming you can get a person on the line with half a brain. PM me and let me know what you find. GL

 

You will pay sales tax in the state that you register it in. You also need an address to register the car. Create an LLC in Oregon and register it there under your LLC. The companies that help set up the LLC can manage the mail for you and you use their address.

I did this in Montana recently to avoid the 10% sales tax in Louisiana. The LLC cost me $569. I'm buying two new Porsches in the next 20 months and not paying all that tax.

 

You need to check given states’ laws. Every state I know of you are not permitted to keep an out of state registered car in the state more than X days. So even if you are a resident of state A, but garage in State B, you register in state B.

 

And I'm sure for purposes of this public forum, you will go visit your cars in Montana from time to time

 

Generally, you pay tax on where you register the car, and you register your car where it is principally garaged.

 

Easy, if you file taxes in two states and high income good chance you will get an audit. If you work in NY, but don’t live there for more than 6 months and you can be a resident in another state. Since your work is in NY they will collect 100% state taxes, and if your residence is FL ....NY owes you a big refund on collecting residency taxes. You have now become a target to verify your status ......just went through it for 5 months of proof free and clear. In a nut shell I’ve rode this train several times ......same reason a lot of athletes live in FL.

 

Why don’t you lease it for now, then once you’ve moved to OR, ask for the payoff and pay it all at once with either cash or financing. I believe since by then you’d have an address in OR, you may be subject to OR taxes on the payoff (which I presume is still 0%). PFS doesn’t have a pre-payment penalty although dealer commission may be charged back if the contract is closed within a month of delivery.

 

So this is interesting although kinda unrelated.....was speak to my FA the other day....he's in FL....was giving him a heads up my best friend is moving to NY but still wants residency in MA....I'm buying his house so we're trying to figure that part out.....NY is very aggressive nowadays about taxes and residency.....the rule is out of the state for 6 months, 1 day.....he has a group of VC's that live in NY (and FL) and claim FL residency.....they are very calculated in how they go about doing things....

Wheels up before 2 PM on Thursday and the day counts for FL, wheels down after a certain time Sunday (I forgot the exact time) and day counts for FL....they do that 46 weeks a year and meet the requirements for out of state residency.....it is all logged and tracked....

 

So, my question.

Residency and tax income in NY

Borrow storage space and store car in Oregon 100% of the time (or at least 90%). Still have to pay tax to NY? Makes no sense to be.

 

True. If you own the car, and are a resident in the state, you have to register the car in that state within a certain time period. (usually within 30 days). This is true unless you are military or you don't actually own the car (i.e. on the title). But this is rarely enforced. I have lived in Louisiana for almost 2 years now and both of my Porsches still have Delaware plates. No one has bothered me and I have been pulled over once for speeding with Delaware tags, registration and with a Louisiana driver's license. The cop asked me and I just told him I have property in multiple states.

LOL. Nope. I've done a significant amount of research on this. Louisiana (where I live) Supreme court already ruled on the Montana LLC tax work around. It's legal until the state passes a law specifically forbidding it which would be impossible to enforce anyway, "pierce" the entire purpose of an LLC, and prevent anybody from driving a car with out of state plates in Louisiana. But to be absolutely safe, the name of my LLC is Montana Porsche Rentals. I will have a legal rental contract agreement between me and my LLC and monthly transactions to document the rental if challenged in a court which will never happen. I even got an EIN for my LLC for free in about 5 minutes online.

Bottom line is that the LLC will actually own the cars and I am just renting them. (of course I own the LLC). No sales tax, no annual inspection. It will save me $30k on my two cars. More cars to come I am sure.

 

Assuming you own the car and, as you’ve stated, you live in NY, then tax to NY as you’ll register to car in NY (where else would you register it unless you had another residence, LLC, etc.).

Lots of wrong info in this thread....

 

Wow...so much misinformation

Every state has a department of revenue which, depending on the state, oversees the DMV of that state. You want to find out the rules on what it takes to register a car in Oregon while living in another state? Go to the Oregon's department of revenue website. Once you have read and UNDERSTOOD the 50+ pages, then go to the Oregon's DMV website and read what determines residency, what determine what it takes to have a drivers license, what it takes to register a vehicle. Once you have done that, now go to your OTHER state of residence and do the exact same procedures you just did in Oregon.

Then, ensure that there are no overlapping or contradictory rules between the 2 states (which happens in 99% of situations because STATES LIKE MONEY). Then take a gamble on which set of rules you want to apply. Then, presuming you are wealthy enough to hire a CPA as you own 2 homes and a Porsche, GO TALK TO YOUR CPA.

And, if you think this is complicated, you can turn to each of those 2 states tax rules on recognizing income and where it is "earned".

I can't believe there are this many people on this forum who "wing it" when it comes to complex tax law or maybe they just don't give a F.

 

This may be a stupid question; but can one have multiple licenses in different States if they also have a house/property in that State??