Nebraskans Use Sham LLC's to Avoid RV Taxes

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One Nebraska State Senator says some Nebraskans are evading taxes on their recreational vehicles, and lawyers in Montana are helping them do it.

State Senator Galen Hadley says he was surprised at what he found when he Googled titling an RV in Montana.

"I was amazed at how many law firms there were that are willing to set up an LLC to avoid taxes in your home state," said Hadley.

Lawyers ready and willing to set up a limited liability company for people in Nebraska.

That company would then own the RV.

"It means you can avoid the payment of sales taxes in Nebraska that would be both state and local taxes you can also avoid the registration fees and motor vehicle taxes each year," said Nebraska Tax Commissioner Kim Conroy.

The revenue is lost in Nebraska at a local and state level. It's a concern because Conroy says the dollars and cents add up.

"If you bought a $200,000 RV it would cost you $14,000 to tax and license it here, and it costs $250 in Montana," said Hadley.

Senator Hadley says he believes his bill has a lot of support in the Legislature.

The bill would give Nebraskans 30 days to pay sales taxes and fees if they are served with a notice by the Department of Revenue or the Department of Motor Vehicles.

Those who do not comply would face a 50 percent penalty.