Posts Tagged ‘RVs’

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.

According to press reports, the Super Committee is eyeing elimination of the second home mortgage interest deduction as part of a package of spending cuts and tax increases aimed at closing the federal budget gap. RVs qualify for a second home mortgage interest deduction because they are a very popular weekend and vacation “home” for middle class Americans, according to a news release. The second home mortgage interest deduction serves as a powerful incentive for consumers to purchase RVs.

To preserve this important industry sales tool, the RV industry has launched a Congressional e-mail campaign aimed at preserving the deduction. With the deadline for the Super Committee looming, the industry only has this week to influence the U.S. Congress.

In order to expedite and simplify the RV industry’s communication with Congress, RVIA is urging industry members and RV owners to visit RVACT at www.rvact.com which contains all the tools needed to let members of Congress know their feelings about any effort to repeal the second home mortgage deduction as it applies to RVs.

Available at the site are a letter for generally interested parties, a letter for dealers, and a letter for suppliers and manufacturers to send to Congress. All of the letters are completely customizable so that interested parties can add specific information and views on the proposal. By entering their name and address, the site will automatically match the individual with their Senators and Congressman and have an email sent to their office.

Once the Super Committee makes its recommendations there is likely to be an up or down vote on the package, so it is seen as critical that any views for input be made before the Super Committee’s deadline.