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Originally Posted by ocbrz66
Do you think rental car companies register all their cars in the state which they are operated? Or do they maintain proper insurance and registration in the state where their llc is based?
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Since I rent cars on a monthly and sometimes weekly basis, I can say with 100% certainty that the cars are registered in the states where they are primarily operated or were first put into service, not where their headquarters is located nor where their corporate registration is based. If you rent a car for local return, 90% of the time it will be tagged in the state where you rent it.
You are more likely to get a car registered out-of-state if you're returning it somewhere else, since the local offices seem to want to get cars that are not part of their regular inventory out of their garages. But even then, they're not registered in the state where the company is located, but wherever they were first put into service.
I recently had an Enterprise rental in Texas that was tagged in Oregon and a Hertz rental in Oklahoma that was registered in New Mexico. I get a few more out-of-state local rentals in Florida, especially in the fall when the snowbirds rent cars to drive down from up north. I've had NY, NJ, PA, OH and even a Vermont tag that I can remember.
Quote:
Originally Posted by ocbrz66
Ask yourself why are nearly all major companies registered in Delaware? States rights.
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They register in Delaware because of the business-friendly court system and well-developed statutes for resolution of disputes, which has nothing to do with your car tax scheme.
What I think you're trying to argue is that since it's okay to register a corporation in Delaware, it's also okay to register your car in Montana and avoid sales tax, registration fees and environmental regulations in your actual state of residence. But that analogy doesn't hold because Delaware corporations pay sales tax and corporate income tax in the states where they do business and earn income, and they're required to comply with local environmental regulations. What you're doing is more analogous to a Delaware corporation operating in California but pretending it doesn't, then polluting and refusing to pay sales and income tax. That would be illegal.
So you're zero for two in analogies. Want to try for a third?