Did you know it can cost $225 to register your RV for the first time in Florida? That‘s one of the highest registration fees in the country. But what if you could save a couple hundred dollars by registering it in another state?
You’re wondering, “Can I register my RV in another state, and legally save money on registration fees?”
Like most legal questions, the answer is that it depends.
While it’s possible to register your RV in a state that you don’t live in, it doesn’t necessarily save you that much in the long run. While this guide is not written by a lawyer (and will not issue any legal advice), what we will do is clarify if registering your RV in another state is a smart move for you.
Key Takeaways
- It’s possible to register an RV in a state you don’t reside in, but this is subject to specific state laws and residency requirements; violating these laws can lead to hefty fines or legal issues.
- There can be financial benefits to out-of-state RV registration, like lower taxes and fees in certain states. But there are also additional costs, such as transport, storage, and dealing with excise and luxury taxes.
- Always consult your accountant before making big financial decisions like this.
Exploring the Legality of Out-of-State RV Registration
Whether or not you can register your RV in another state depends on state laws and your residency status.
Every state has its own rules, and while some allow non-resident RV registration, others do not. In general, most states require the RV to be registered in the state where the owner or primary driver permanently resides.
States that allow out-of-state registration are:
- Delaware
- Kentucky
- Indiana
- Massachusetts
- Maine
- North Dakota
- New York
- Pennsylvania
The Risks of Non-Compliance
Operating a vehicle without valid registration can lead to serious consequences. Consequences can range from vehicle impoundment or immobilization to driver’s license points in some states and vehicle registration holds.
And if you think the penalties end there, think again.
If you’re caught registering your RV in another state to dodge taxes, you could be hit with tax evasion charges and hefty penalties. We’re talking thousands of dollars, so whatever choice you make, do your due diligence to remain compliant.
Could You Save Money by Registering Out-of-State?
The potential financial savings from out-of-state RV registration sounds appealing, but how much are you actually saving?
The answer is that it all depends on what state you’re thinking of registering in. For instance, registering an RV in California, for instance, can be over $500, not including taxes and special licensing. Therefore, by registering in, say, Delaware instead, you could save a couple hundred dollars.
Breaking Down Registration Fees
States determine RV registration fees differently, so look up each state you’re considering separately. Some factors that can influence registration fees include:
- The RV’s weight
- The RV’s age
- The RV’s value
- The type of registration method used
Some states use a flat fee structure, while others adopt a variable scale based on motor vehicle characteristics.
For instance, Alaska levies a flat registration fee of $100 for RVs. On the other hand, states like Idaho, use the value of the vehicle to determine the fee, while Arkansas uses the type and weight of the vehicle.
Sales Tax Savvy
A key financial upside of registering your RV out of state is the sales tax savings. Some states don’t impose sales tax on an RV purchase based on the manufacturer’s suggested retail price, which leads to significant financial savings for buyers.
What about the Additional Costs of Registering an RV Out of State?
While lower registration fees and sales tax can make out-of-state RV registration appealing, the potential additional costs should not be overlooked. For instance, states may impose a one-time title fee for new owners acquiring the title of an RV when registering out of state.
Additionally, the cost of transporting your RV to another state for registration can increase the total expenses. This includes transportation or shipping fees, not to mention personal travel expenses if your presence is required in the other state to complete the registration process.
Excise Tax and Luxury Tax Implications
When registering an RV out of state, you should also think about excise and luxury taxes, beyond registration fees and sales tax. Different states have different taxes.
Some states tax the sale of certain goods like yachts and RVs. Since these are luxury items, these taxes are dubbed “luxury taxes.”
These taxes can add significant costs to RV ownership, so talk with your accountant or lawyer to fully understand your tax liabilities here.
Delivery Costs and Travel Expenses
Typically, when registering a vehicle for the first time, the registration has to take place in the state where you’re registering it. And it’s not registered yet, so you can’t just drive it over. You have to pay to transport your RV.
Moreover, personal travel expenses can also come into play. If your presence is required in the state where you’re registering your RV, you’ll need to budget for travel and accommodation expenses. These factors add up.
State-by-State RV Registration Advantages
States vary significantly in their RV registration policies. Depending on your circumstances and priorities, some states offer more advantages than others with their lower fees, taxes, and simpler residency requirements. South Dakota and Montana are two states that are easy to register in
Other states like Delaware, New Hampshire, Indiana, Arizona, and Nevada offer tax advantages for RV owners, such as low or non-existent sales tax and no annual property tax on RVs. Furthermore, states without an income tax, such as Alaska, Washington, Nevada, Florida, and Wyoming, present attractive options for RV registration.
Vehicle Registration for Your Out-of-State RV
Having weighed the pros and cons, if you decide to proceed with out-of-state RV registration, here’s what comes next.
Step #1: Prepare Your Registration Application
When submitting your registration application, be prepared to provide general information about your RV, including the Vehicle Identification Number (VIN), model, and make. This information is essential for processing your application accurately.
Documentation such as a bill of sale, title, or certificate is also required to verify ownership of an RV for registration.
Step #2: Establish Proof of Residency or a Legal Entity
It’s also worth noting that certain forms of identification are required when registering an RV in another state. These might include a driver’s license, specialty license, or tax account number.
If you’re registering your RV in a state like Florida, you’ll need a Florida driver’s license or Federal Employer Identification Number (FEID) for businesses to obtain a title and register an RV.
One way to establish residency for RV registration is to have a permanent address in the state where you’re registering your RV. This could be as easy as renting a spot in an RV campground for long-term residents.
Now, you’re ready to travel to your state of choice to register with the DMV.
Before You Register…
Ultimately, the equation you have to calculate is whether you’ll actually save money, after factoring in travel expenses, registration procedures, and proper tax filings. In some cases–even with those additional expenses accounted for–it’ll be cheaper to register out-of-state than it would be in-state.
If you live in a state with a luxury tax or high registration fees, it might be worth it. But most states actually have reasonable registration fees.
Before making this decision, talk to your accountant to ensure that you’ll be well within state law to proceed. An accountant will do their due diligence to look up the city tax, state sales tax, and the proper registration procedure through the Department of Motor Vehicles.
If you decide it is cheaper to register in another state, then you now have a new problem…
Depending on the state’s requirement, you may need to keep your RV in that state for a certain amount of time before you can register it. You can’t just park your RV on the street. You need a place to store it.
That’s where Neighbor can help.
Whether you need short-term storage or a long-term place to keep it safe, you can find safe, affordable storage through Neighbor’s peer-to-peer marketplace. You can browse storage options here.