Posts Tagged ‘RVs’

A website posted photos and provided an address in Grand Island, Nebraska. But a Google map search and Grand Island police indicate there is only a vacant lot at the address listed on the website.

A California woman named Pam, who doesn’t want her last name used, believed there was a RV dealership and that her $20,000 down payment would lead to a motor home. Pam said, “On the website there were pictures of RVs with a sign in the background so absolutely I thought there was a big lot there.”

Nebraska State Patrol Auto Fraud investigator Gene True said he couldn’t find any State license for Grand Island Truck and RV center. He said three buyers have filed reports that campers or motor homes they purchased had not been delivered. True said one man drove to Grand Island from Oregon only to discover the dealership was not at the address on the website.

True said the victims have reported losses totaling almost $60,000. True said, “I’ve never heard of anybody getting their money back.”

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The  Recreation Vehicle Industry Association (RVIA) reported wholesale shipments of all RVs were 19,100 units for October 2011 which was ahead of last month by 12.4% and 15.1% ahead of this same month last year.

Gains were recorded in both conventional travel trailers and fifth-wheels while other categories were even with or slightly less than the totals reported for those categories in October 2010.

Year-to-date, total shipments rose to 219,100 units through October this year, up 4% from this same 10-month period last year. Towable RV units increased by 4.3% while motorhomes were up 1.4% through October. On a seasonally adjusted basis, all RV shipments were at an annualized rate of 247,800 units through October this year.

The Minnesota Department of Revenue believes a small group of RVers are attempting to evade paying sales tax on recreational vehicles by registering them in Montana.

Motor vehicles are subject to the state’s 6.5% sales tax and the RVs need to be registered in Minnesota. The rule applies no matter where the RV was purchased.

The agency says Minnesota residents are setting up shell corporations in Montana to purchase the RV and register the vehicle in Montana. The price of the motorhomes involved ranges from $150,000 to over $1 million.

The tactic violates state law and any resident caught evading sales tax could face gross misdemeanor or felony criminal charges. They would also have to pay the sales tax, as well as any penalties and interest.

Since October 2010, the revenue department has closed 22 cases and collected $230,000. Currently there are 270 cases under investigation. The agency is working with Montana authorities, Minnesota State Patrol and the state’s Department of Public Safety Vehicle Crime Unit.

Those who have not paid taxes on a recreational vehicle should contact the Minnesota Department of Revenue at (651) 556-6684 or visit the Department of Revenue website.