(Courtesy ABC 5/WOI-TV) – DES MOINES, Iowa (AP) — Authorities say they’ve collected more than $100,000 after cracking down on people who have been dodging Iowa taxes on motor homes.
A law passed this year is aimed at keeping Iowans from registering luxury motor homes in Montana, where out-of-state residents legally can set up a shell company and register a motor home there. Montana doesn’t charge general sales taxes.
Wednesday is the last day for people to settle with the Iowa Department of Revenue. The offer includes paying the initial registration fee of 5 percent of the purchase price and a penalty of 10 percent of the fee.
Revenue Department spokeswoman Victoria Daniels said that the response from the tax avoiders has been huge and “quite amazing.”