Wyoming – Creating a Foreign Entity to Purchase and Register Motor Vehicles

SALT Report 2592 – The Wyoming Department of Revenue issued an advisory to residents who create a foreign corporation or limited liability company in Montana to purchase and register a vehicle without paying sales tax. If a vehicle is purchased in this manner and that vehicle enters or is used in Wyoming, the owner must register it with the State and pay use tax on the full sales price.

Additionally, the Department warns that vehicles purchased through Montana LLC’s by Wyoming residents to avoid paying sales tax will not be considered a vehicle owned by a nonresident. Consequently, the use tax exemption for nonresident owners will not apply to these purchases and Wyoming use tax must be paid to the county treasurer prior to the vehicle being registered in Wyoming. However, the State will allow a credit offset for any sales or use tax paid in another state.

For Further Information

Wyoming Department of Revenue, Excise Tax Division – Bulletin  #23