We have a great, long time client that recently bought an expensive, enclosed snowmobile trailer in Maine.
The dealer let him know that they could get him a Maine license plate and that he wouldn’t have to pay additional sales tax.
He asked us “does that sound like a good idea?”
Massachusetts auto insurance policies require that vehicles have MA plates. So, if our client gets Maine plates and if he wants physical damage coverage for the value of the trailer (he does), then he’ll have to find a Maine insurance company.
A little Google, gum shoe detective research also revealed:
Unless you have a secondary residence in Maine, or operate a business in Maine, MA law says: if you a resident of MA all of your vehicles and trailers have to be registered in MA. It is unlawful to own a tailer and have it registered in another state. The Commonwealth of MA considers it a form of tax evasion. MA is well aware that non-residents can register in Maine and that it done to avoid taxation in MA, but it is not legal in MA for MA resident to do so.
Our client decided to register the trailer in Massachusetts.