Set up a Anchorage, Alaska domicile?

[Ro_n_Joe]

DW and I are going full timing next year. At this point we’re planning to purchase a new Dutch Star 4328 next fall (Newmar factory pickup) to begin our journey. Originally was planning on going the LLC route but due to a recent iRV2 poster reporting issues with a 3 axle RV registered to a Montana LLC getting a $1K ticket at a IN rest stop for not having a commercial fuel tax permit/sticker, I’m looking for another alternative and Alaska is one of them.

Considering setting up a domicile in Anchorage, AK for the following reasons:
1) No state income taxes
2) No sales taxes in Anchorage
3) Low vehicle registrations. State website reports $250 for a motor-home.
4) No vehicle inspections
5) PPO managed care coverage is available via Premera BC/BS of Alaska. Even our local primary care physician on the east coast is in network and could keep him if we want (at least at first). This is key because we’re both 2-3yrs under 65
6) There’s a UPS Store in Anchorage who could potentially handle mail forwarding (haven’t contacted them yet).

Florida was going to be our choice but would pay a 7% sales tax w/o an LLC. Naturally I’m looking for legal alternatives to forgo paying a sales tax. After just 12 months, we could switch to a Florida domicile and forgo any sales tax (IF we didn't like the AK domicile) This is an advantage of being a full timer.

New Hampshire is potentially another alternative but Alaska looks far better at this point.

What am I missing here? Thanks in advance.

[Rice]

TechWriter wrote:
Since OP is under 65, I'm assuming he's using an ACA (aka Obamacare) health plan.

If this is the case, then you have to actually reside there for a time in order to qualify for an ACA plan. Just getting a mailing address without spending time in that location, could get you into trouble.

What amount of time is required to qualify for an ACA plan? When does the time spent there have to occur, with respect to qualifying for an ACA plan? Does it have to be in the same county where applying for insurance, since insurance plans are based on the county and not on the state?

[TechWriter]

wanderingaimlessly wrote:
Since the combination of sales tax and health insurance seem to be the drivers on this, look also at Nevada, there are some counties offering PPO plans, no income tax, vehicle and sales taxes I'm not sure.

Since OP is under 65, I'm assuming he's using an ACA (aka Obamacare) health plan.

If this is the case, then you have to actually reside there for a time in order to qualify for an ACA plan. Just getting a mailing address without spending time in that location, could get you into trouble.

[Optimistic_Para]

Beentherefixedthat wrote:

I currently hold an Alaska Drivers license that has as my address on it a PO Box.

It can and is done all the time.

Oh, it's entirely possible to have a P.O. Box on your driver's license.

Here in NY, the form for applying for a driver's license has TWO address sections, one for your PHYSICAL RESIDENCE and one for your MAILING ADDRESS, with the option of simply checking a "same as physical residence" box in the mailing address section.

NY is happy to put your mailing address on your driver's license, but they won't GIVE you a drivers license if you don't have a physical address in NY.

The web site for the AK DMV certainly seems to imply they operate the same way.

Of course, I don't live in AK, so I can't say more than that.

If the original poster still wants to go ahead with using a PMB in AK, he should check with the AK DMV himself to see if it's possible or not.

[ppine]

Nevada is nothing but cactus and rocks. You wouldn't like there either.

[Beentherefixedt]

Optimistic Paranoid wrote:
The key factor APPEARS to be whether a state will accept a mailbox type address such as the UPS store as a valid address for such things as vehicle registrations and driver's licenses. FL and TX will. I understand a lot of states will not. This is the usual reason that most states are not used by full timers who don't actually own property in them.

Looking at the AK DMV site, it says that you must provide proof of your principle residence in Alaska. It further says that "The document must show your residence address, not a post office box or mail cache facility."

Full details are here:

http://doa.alaska.gov/dmv/akol/original.htm

I currently hold an Alaska Drivers license that has as my address on it a PO Box.

It can and is done all the time.

However I don't see much more benefit from getting an Alaska DL or Residency.

Further I am not sure I understand the issue of the ticket for the class a in Indiana? If it was legally registered as a private vehicle and NOT a COMMERCIAL vehicle there should be no problem. It occurred to me that having been an LLC that vehicle may have been done as a commercial vehicle and had only a low weight license.

I would avoid the LLC at all costs. It only adds complexity and possible questions to say nothing of more work at tax time and could raise a red flag at the IRS.

Use one of the standard ones that are used by thousands, Fla,SD. and be done with it.

[Roy_Lynne]

I understand if you want Nevada, you can go to an RV park and pay a month rent. With your rental agreement you can use that as proof of residence and get a drivers licence.

[wanderingaimles]

Just a thought
https://www.gohealthinsurance.com/Wellmark-Blue-Cross-and-Blue-Shield-of-South-Dakota-health-insurance

[accsys]

Ro"n"Joe wrote:
Familiar with Escapees. Of the 3 states mentioned, only Florida has a PPO Managed Care Plan for those under 65. Would likely use the Escapees Florida location mail service (if Florida domicile set up) and saving the 6% Florida and 1% County sales taxes is a huge savings.

If South Dakota had a PPO plan, we would set up there with their advantages and 3% sales tax.

Just a minor correction on FL sales tax. The county sales tax is only charged on the first 5,000 of a purchase. This naturally applies to large ticket items like a motorhome. In that case you pay 6% plus $50 (1% of 5,000) for sales tax. Vehicle registration is based on weight classes and the annual registration on our DP (32,000 pounds) is about $75.

[Ro_n_Joe]

wanderingaimlessly wrote:
Since the combination of sales tax and health insurance seem to be the drivers on this, look also at Nevada, there are some counties offering PPO plans, no income tax, vehicle and sales taxes I'm not sure.

Thanks for the suggestion. Via search: "Nevada's statewide sales tax rate of 6.85% is eighth-highest in the U.S. However, local sales tax rates can raise the sales tax up to 8.265%".

[wanderingaimles]

Since the combination of sales tax and health insurance seem to be the drivers on this, look also at Nevada, there are some counties offering PPO plans, no income tax, vehicle and sales taxes I'm not sure.

[jorbill2or]

Ro"n"Joe wrote:

jorbill2or wrote:
I would look over the escapees web site and all the work they have done. I know it’s tempting to look at alternatives but there is a reason Florida Texas and South Dakota are the main states used unless you have family or some ties to another state. I wouldn’t reinvent the wheel .

Familiar with Escapees. Of the 3 states mentioned, only Florida has a PPO Managed Care Plan for those under 65. Would likely use the Escapees Florida location mail service (if Florida domicile set up) and saving the 6% Florida and 1% County sales taxes is a huge savings.

If South Dakota had a PPO plan, we would set up there with their advantages and 3% sales tax.

Medical was and is our main difficulty my DW is 61 and years away from Medicare. ( I’m 66) We make too much money for subsidies. So healthcare is more of a expense than taxes in many cases. You need to look at all the aspects as they work together. Saving one time taxes in some cases may not be the best choice.

[Tom_Barb]

Consider setting up a domicile in Wa. for the following reasons:
1) No state income taxes

3) Low vehicle registrations. Tabs are based upon vehicle value.
4) No vehicle inspections
5) PPO managed --- unknown by me
6) There’s a UPS Store in Anchorage who could potentially handle mail forwarding (haven’t contacted them yet). Several here that do that.. and the state doesn't check on residency. the Post Office will Forward mail from a PO Box here.

Bringing your M/H to Wa. you'd pay a 1 time tax based upon value, then the license fee based upon the same value. after that every year that fee goes down. and you can renew on line.

[Trackrig]

Alaska is starting to go to the new Real ID driver's licenses after the first of the year as required by the feds. This is what you'll have to do to get a new Alaska driver's license.

This should be interesting as a lot of people in Alaska live in the bush, off of the grid where there are no addresses, no utility bills, no a lot of things that Home Land Security has no idea about - but we're certainly safer for it.............

Yes, you can be an Alaskan resident without applying for the PFD - Permanent Fund Dividend Check. And don't apply for it if you don't meet the requirements such as being in state for a little over half of the year. And don't think they just reject your application and that's the end of it. The State prosecutes people every year who shouldn't have applied.

It's really simple for the State to check on that. Unless you take your own plane or boat in and out of the State, they simply check the passenger logs on commercial flights, the State ferry system, or the Boarder check points with Canada.

Another simple way they catch people is when they file for the dividend using a computer that isn't in Alaska - they can tell that. We've had friends who procrastinated on filing for the dividend and then flew out of state on vacation filing for it when they were Stateside or in Mexico not thinking it would be a problem. They met all of the States requirements for the PFD, they just filed for it while they happened to be out of state. The computer system catches this and rejects them. Then it takes them months to prove they do actually meet the law.

Bill

[Optimistic_Para]

The key factor APPEARS to be whether a state will accept a mailbox type address such as the UPS store as a valid address for such things as vehicle registrations and driver's licenses. FL and TX will. I understand a lot of states will not. This is the usual reason that most states are not used by full timers who don't actually own property in them.

Looking at the AK DMV site, it says that you must provide proof of your principle residence in Alaska. It further says that "The document must show your residence address, not a post office box or mail cache facility."

Full details are here:

http://doa.alaska.gov/dmv/akol/original.htm