Minnesota revenue officials say they’ve cracked a tax evasion scam: residents who set up phony corporations in Montana to buy expensive motor homes and thereby avoid the state sales tax.
The department caught 22 evaders in the past year and collected $230,000, says a story by Don Davis in the Fargo paper.
The story quotes Revenue Commissioner Myron Frans:
“While the majority of Minnesota residents pay taxes when purchasing a vehicle, there is a small group that isn’t paying their share. We are investigating these tax evasion activities and we will ensure that all Minnesotans follow the rules and pay the taxes that they owe.”
Frans said that Minnesotans must pay the state’s 6.5 sales tax regardless of where they buy the vehicle. Also, the vehicle must be registered in Minnesota.
The department warns: People involved in such a scheme could face felony or gross misdemeanor charges in Minnesota.