Recreational Vehicle Purchased in Florida and Registered in Montana Not Subject to Tax
In Free Enterprises LLC v. Department of Treasury, Michigan Tax Tribunal, No. 379030, August 26, 2011, the Michigan use tax was not due on a recreational vehicle (RV) purchased in Florida, registered in Montana, and subsequently stored in Michigan because there is a presumption of exemption for property brought into Michigan by a resident more than 360 days after its purchase.
The RV was purchased by a Montana LLC that was set up to "acquire, by purchase, lease or otherwise, any real and/or personal property and to dispose of it, in any manner." The sole member of the LLC, who was a Michigan resident at the time of the purchase, stored the RV in Michigan during the summer months of 2008, 2009, and 2010. However, this is not the type of storage that leads to imposition of the use tax, where property is brought into the state more than 360 days after its purchase. The RV spent more time stored in Florida and other states than in Michigan. Though the LLC's sole member took advantage of a Florida sales tax exemption and created the Montana LLC in order to minimize the tax liability of the RV purchase, these circumstances do not overcome the presumption that the RV was not stored, used, or consumed in Michigan.