REGISTRATION SCAM: RV Owners Getting Around Fee

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Iowa lawmakers are looking to close a loophole that allows those purchasing an RV in the state to avoid costly registration fees.

In Iowa, vehicle owners have to pay 5-percent in new registration fees when they purchase a vehicle. The more expensive the vehicle, as some newer and larger RVs are, the more you pay in registration.

For a $1 million RV, the purchaser is required to pay $50,000 in registration fees

KWWL is reporting the Iowa Department of Transportation says some Iowans are getting around the rule by establishing out of state limited liability corporations. The vehicle is registered to the corporation in a state, like Montana, that doesn’t charge for new registrations.

For a fraction of the cost of registration in Iowa, some people are simply paying lawyer fees to set up the corporation.

Currently, if someone is discovered pulling this scam, they only face a $150 citation. Legislation recently passed in the Iowa Senate would make it a criminal charge with harsher penalties.