Arkansas ATV UTV Registration: The 9.75% Purchase Tax and Why Montana’s Permanent Plate Wins

Tyler walked out of a powersports dealer in Fayetteville on a Saturday morning, keys to a brand-new Polaris RZR Pro R Turbo in his pocket, and a receipt in his hand that included a line item for $4,095 in Arkansas sales tax. Four thousand ninety-five dollars. For a machine he bought specifically to ride trails, not roads. His goal that weekend was a sunrise run at the Buckhorn Trail System. The state of Arkansas took its cut before he ever touched dirt.

If you ride a Kawasaki Teryx KRX 4 1000, a Polaris RZR, a Yamaha Wolverine, a Honda Talon, or anything in between, you already know the deal. Four seats, eight inches of suspension, enough horsepower to climb a creek bank with three friends and a cooler. Built for the Ouachita National Forest and the Ozark hardwood ridges. Built for Buckhorn. Built for Bear Creek. Not built for a commute that doesn’t exist.

And yet arkansas atv utv registration treats your trail machine like a luxury vehicle purchase. Combined state, county, and city sales tax in NW Arkansas runs 9.75%. In Hot Springs it’s 9.5%. In Little Rock it’s 9.125% after the July 2025 increase. On a $25,000 mid-range UTV, that’s $2,281 to $2,438 the dealer hands to the state before your tires touch the trail. And then, if your local government opted into Act 922’s street designation program, you get to renew your registration every year. And pay for motor vehicle insurance every year. The tax is a one-time event. The registration cycle is forever.

There is another way. You pay once. You get a permanent Montana plate. Montana doesn’t invoice you next year. Or the year after. Or the decade after. The plate doesn’t expire. That’s the whole deal.

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Arkansas ATV/UTV Registration: What the State Takes at Purchase

Arkansas calculates its take in two parts, and the second part is the one that hurts. The state rate is 6.5%. Then your county adds its piece. Then your city adds its piece. Stack the three and you land somewhere between 9.125% and 9.75%, depending on where you sign the paperwork. There’s no special “off-road vehicle” rate that gives you a break for buying a machine you can’t legally drive on a road. You pay the full sales tax on the full purchase price, same as a sedan.

The state also requires a $5 OHV decal for off-road use. That’s the small print. The headline number is the sales tax, and in NW Arkansas (Fayetteville, Bentonville, Rogers, and Fort Smith just south on I-49) it sits at the top of the chart at 9.75%. Three of the fastest-growing cities in America, all running near-double-digit tax rates on every ATV and UTV that crosses a dealer’s parking lot.

If your city or county opted into the 2025 Act 922 street designation program, the cost gets layered. You still pay the sales tax at purchase. Then you pay annual motor vehicle registration. Then you pay motor vehicle insurance, the real kind, the kind with liability and physical damage coverage. Each year. Forever. That’s the Arkansas system as it exists in 2025.

For the full state breakdown of motor vehicle and off-highway vehicle requirements, see the Arkansas Department of Finance and Administration.

Combined Arkansas Sales Tax Rates (2025):

• Fayetteville / Washington County: 9.75%
• Bentonville / Benton County: 9.75%
• Fort Smith / Sebastian County: 9.75%
• Jonesboro / Craighead County: 9.5%
• Hot Springs / Garland County: 9.5%
• Texarkana / Miller County: 9.25%
• Little Rock / Pulaski County: 9.125% (raised July 1, 2025)

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The Road Ban: § 27-21-106 and the 2025 Partial Fix

The default rule in Arkansas is simple and old. Arkansas Code § 27-21-106 bans all-terrain vehicles and utility task vehicles from public streets and highways. Not a soft prohibition, not a wink, not a “we’ll look the other way.” A statutory ban. Your $52,000 Polaris RZR Pro R Turbo or your $42,000 Kawasaki Teryx KRX 4 1000 is legally a trespasser on every paved Arkansas road by default.

The exceptions are narrow. Farming and hunting operations can use the right shoulder, single file, on a direct route between fields. Trail connections within 300 meters of private property to trail access are permitted. Road crossings at 90-degree angles, with a full stop and a yield, are allowed. Law enforcement, fire, and EMS get an official-use carve-out. If you fit one of those exceptions, you also need a DOT headlamp, a brake light, rear turn signals, a mirror, a spark arrestor, a horn audible at 200 feet, and approved eye protection. Bring receipts.

Arkansas Code § 27-21-106: “No person shall operate an all-terrain vehicle upon any public street, road, or highway of this state, except as specifically authorized in this subchapter.”

In 2025 the legislature passed Act 922 (HB1606) and gave cities and county judges new authority. Cities can adopt ordinances designating specific streets for UTV operation. County judges can issue executive orders doing the same. UTVs must be 80 inches wide or less, with factory safety equipment. The rider needs a valid driver’s license, motor vehicle registration under standard motor vehicle law, proof of motor vehicle insurance, seatbelts, headlamps, brake light, and turn signals. Cannot designate streets with posted speed limits over 55 mph. Cannot designate divided four-lane highways.

It sounds like progress. In practice it’s patchwork. Most Arkansas cities and counties haven’t opted in. Only specific designated streets are eligible even where the ordinance passes. And the cost of compliance still includes annual registration renewal plus car-level insurance. Montana’s permanent plate, by contrast, is recognized in every state without an ordinance, an executive order, or a vote. You don’t wait for your county judge to sign anything. You pay once. The plate is permanent. Forever.

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What Arkansas Sales Tax Actually Costs on an ATV or UTV

Sales tax is a one-time event in the technical sense. You pay it once, at the dealer, and the state doesn’t invoice you for sales tax again on that machine. But at 9.75% on a serious UTV, “one time” doesn’t sound like a small bill. On a $52,000 luxury 4-seater, the Arkansas sales tax line is over $5,000. That number isn’t an annual renewal fee. It’s a check you write once. And it’s so large it functions like a year’s worth of trail trips, gear, fuel, and lodging, all converted into a single payment to the Arkansas Department of Finance and Administration before your tires leave the showroom floor.

Now compare it to Montana. Montana’s constitution bans a general sales tax. There is no state sales tax on a vehicle purchase. None. Combine that with Montana’s permanent plate provision for ATVs, UTVs, motorcycles, trailers, and boats, and the math gets ugly fast for the Arkansas dealer’s tax line. You pay once. The plate is permanent. Montana doesn’t bill you again. Not next year. Not in five years. Not ever.

Four price points, three Arkansas markets:

Montana’s $0 column isn’t a temporary promotion. It’s the price every year. Year one: $0 sales tax. Year two: $0. Year five: $0. Year ten: still $0. Because the plate is permanent. You pay once when you register, and Montana never charges you again. The Arkansas column, by contrast, is just the purchase tax. Add annual renewal under Act 922 designations, add insurance, and the line keeps growing for as long as you own the machine.

NW Arkansas pays the most. Fayetteville, Bentonville, and Rogers all sit at 9.75%. Three of the fastest-growing cities in the country, riding a tech and retail boom anchored by Walmart’s ecosystem. The growth hasn’t made the taxes cheaper. It’s made the buyers wealthier, the UTVs more expensive, and the sales tax checks larger.

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The Ag Exemption: Why Arkansas Farmers Usually Can’t Use It

Arkansas Code § 26-52-403 exempts ATVs and UTVs used “exclusively” in commercial farming operations from sales tax. The state added Act 621 of 2025, which created the Farmer Sales Tax Exemption Card: a $20 initial fee, a $10 renewal, valid for eight years, and meant to streamline point-of-sale exemptions on qualifying equipment. There’s even a dedicated form for ATVs and UTVs: ET-819.

It sounds tidy. It isn’t. The word that breaks it is “exclusively.” Arkansas means it. There is no partial exemption, no apportionment for primary use, no math that lets you split the bill 80/20 between farm and recreation. The day you drive your John Deere Gator XUV 590E to a deer stand on your own property, the exclusivity argument is gone. Same with a turkey blind. Same with a casual ride through your back acreage with the grandkids on a Sunday afternoon. Auditors don’t need video footage. Bank statements showing a Buckhorn Trail day-pass charge or a Mulberry Mountain Lodge stay can be enough to ask hard questions.

This is the trap for Arkansas farm households. The Gator that hauls feed all week is the same Gator that goes to the deer stand in October. Form ET-819 doesn’t account for that reality. Most farmers either don’t claim the exemption (and pay the full 9.75%) or claim it and spend the next eight years hoping no one notices the dual use.

Montana’s permanent plate eliminates the entire question. There is no exemption form. There is no exclusivity requirement. There is no audit waiting for the moment your Yamaha Kodiak 700 rolls past a treestand. You title the machine in your Montana LLC. The state issues a permanent plate. The plate is good for farm work, hunting, trail rides, fishing trips, anything you ride. Forever. One time. Done.

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Ouachita Forest, Buckhorn, Bear Creek, and the Arkansas Riding Scene

Arkansas has one of the strongest off-road riding cultures in the mid-South. The terrain helps. The Ouachita Mountains roll east-west across the south-central part of the state and into Oklahoma, with pine forest, gravel two-tracks, and creek crossings that don’t quit. The Ozarks anchor the north, all hardwood ridgelines and rocky technical climbs that reward a UTV with real suspension travel. And in between you have flatter agricultural land where the machine is part of the job, not the recreation.

The Ouachita National Forest is the heavyweight. 1.8 million acres. Twelve designated OHV trail systems across five ranger districts. The Belle Starr Multi-Use Trail runs 22.6 miles in a looping system with varied terrain, open to OHVs, horses, and hikers. The Boardstand/Military Road Trail threads through western Holson Valley in the Indian Nations area. The Caddo-Womble, Jessieville-Winona-Fourche, Mena-Oden, Oklahoma, and Poteau-Cold Springs districts each have their own systems. All federal land requires a state-approved muffler and a spark arrester. Bring both.

The state-park system contributes the Bear Creek Cycle Trail, 31 miles, technical but accessible, Arkansas Game and Fish permitted. The Buckhorn Trail System runs 60 miles through Ozark hills and pulls weekend traffic from Fayetteville and Fort Smith on every dry weekend of the year. The Ozark National Forest has its own OHV systems in the Boston Mountains and Buffalo River watershed. Mulberry Mountain Lodge runs ATV trails in the Ozarks near Ozark, Arkansas. Mack’s Pines Recreation Area and Carter Off Road Park add private-park options. And riders from Texarkana and southwest Arkansas regularly cross to Muddy Bottoms ATV and Recreation Area in northwest Louisiana, 5,000 acres of mud trails and bogs, an amphitheater, cabins, and event weekends with $95 pre-sale day passes.

The hunting culture is its own ecosystem. Arkansas deer, turkey, and duck hunters treat ATVs and UTVs as standard camp equipment. Four-seat machines like the Yamaha Wolverine RMAX4 1000 and the Honda Talon 1000X-4 haul hunters into WMAs across the Delta and the Ouachitas. A Polaris Sportsman 850 Trail covers the single-rider scouting work. And dirt bikes and dual-sports get their own following, with riders mixing OHV trails and back-road exploration through the Boston Mountains.

The NW Arkansas crossover deserves a callout. Bentonville is the mountain-biking capital of the world, with hundreds of miles of purpose-built singletrack and a riding community that has serious money. Many of those same riders also run UTVs, and the Ozark terrain that makes for technical MTB also makes for excellent Arctic Cat Wildcat XX or Honda Talon trail miles. The machines are different. The riders often overlap.

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The Montana Solution: Permanent Plate. One Price. Forever.

Montana solves this problem at the constitution. The state has a constitutional ban on a general sales tax. So when a Montana LLC buys a vehicle, there is no purchase tax. Zero. Not reduced, not delayed, not partially applied. Zero, written into the state’s foundational law. That alone eliminates the Arkansas 9.75% line item before it can appear on a receipt.

Then Montana adds the permanent plate. State law provides for permanent registration on ATVs, UTVs, motorcycles, trailers, and boats. You pay once when the plate is issued. The plate is permanent. It does not expire. Montana does not invoice you next year. Or the year after. Or any year. The state has no further claim on your registration for the life of your ownership.

No sales tax at purchase, plus a permanent plate with nothing owed after the initial fee. A one-time cost for a problem Arkansas treats as a forever-recurring expense. LLC formed, vehicle titled, permanent plate issued. Done. Forever.

Compare that to the Arkansas Act 922 path. Even where your city or county designates streets for UTV use, you still owe annual motor vehicle registration renewal. You still owe motor vehicle insurance with liability and physical damage coverage. You still owe an annual renewal sticker. Montana’s permanent plate works in every state that recognizes valid out-of-state registrations, which is every state. No ordinance required. No executive order required. No vote in your county. Permanent.

Five years on a $38,000 premium UTV bought in Fayetteville:

Montana’s permanent plate is exactly that: permanent. You pay once when you register, and the plate is valid for as long as you own the vehicle. No renewal. No sticker. Nothing. The state of Montana has no further claim on your registration. Ever.

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Is Montana LLC Vehicle Registration Legal?

Yes. Montana has allowed out-of-state owners to register vehicles through Montana LLCs for decades. It’s statutory, not a loophole or a workaround. The state codified the structure, the permanent plate provision, and the LLC vehicle-titling process explicitly. There is no gray area on the Montana end.

The federal commerce clause backs it up. States cannot refuse to recognize valid out-of-state vehicle registrations. A Montana plate issued lawfully under Montana law is a valid registration in every state, including Arkansas. The state can require you to comply with its operating laws (insurance where required, road use rules, OHV decal for federal land where applicable), but it cannot invalidate the underlying registration.

The structural requirement is that the LLC must be real. Real formation paperwork filed with the Montana Secretary of State. A real registered agent with a real Montana address. Real corporate records. Real title transfer to the LLC. That’s what Zero Tax Tags handles. Every LLC we form is a fully compliant Montana entity. Every plate is a real permanent Montana plate. The structure holds because it’s built correctly from the start.

This structure is for vehicle owners who travel with their machines, ride across state lines, and want a one-time permanent registration solution. That description fits the overwhelming majority of our Arkansas clients, who ride Buckhorn one weekend, the Ouachita the next, and Hatfield-McCoy or Sand Mountain the next.

Thousands of Arkansas riders already use this structure. The math works. The law works. The permanent plate works.

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Four Arkansas ATV and UTV Owners Who Made the Switch

Tyler — Fayetteville, Polaris RZR Pro R Turbo ($42,000)

Tyler is a software engineer at a Walmart-ecosystem tech company in NW Arkansas. He bought the Polaris RZR Pro R Turbo for weekend Buckhorn Trail runs and the occasional Ouachita National Forest trip with friends. At 9.75% Fayetteville sales tax, his bill would have been $4,095. He ran the math on a napkin at the dealer, asked for an hour, and called Zero Tax Tags from the parking lot. The Montana LLC route cost him $849, one time, with a permanent plate that never renews. He saved $3,246 on day one. He also saved every annual renewal that would have stacked on top under Act 922 if Washington County had opted in. “I didn’t realize the plate was actually permanent until the third call,” Tyler said. “Once that registered, I stopped trying to find a downside. The permanent part is the whole product.”

Dustin — Hot Springs, Kawasaki Teryx KRX 4 1000 ($28,000)

Dustin runs a general contracting business out of Hot Springs and uses his Kawasaki Teryx KRX 4 1000 to move crews and tools across rural Garland County job sites. The same machine runs Bear Creek Cycle Trail on weekends. At 9.5% Hot Springs sales tax, his bill would have been $2,660. Montana LLC route: $849, permanent plate, forever. He saved $1,811 on the tax line. He saved a renewal cycle on top of his twelve service trucks. “I track twelve renewal stickers across the work fleet,” Dustin said. “Adding a thirteenth for the Teryx was the last thing I wanted. The permanent plate means I never have to think about it again. That’s worth almost as much to me as the tax savings.”

Dale — Fort Smith, John Deere Gator XUV 835M ($22,000)

Dale is a third-generation cattle rancher in Sebastian County. He works 800 acres of pasture and deer-hunts the same property every fall. His plan was to claim the Arkansas ag exemption on Form ET-819, save the 9.75% Fort Smith sales tax, and get back to running the herd. His accountant stopped him cold. “The second you drive that Gator to a deer stand, the exclusivity argument is gone. One audit and you owe the full $2,145 plus penalties.” Dale went the Montana LLC route instead. $849, permanent plate, works for cattle work every day and works for deer season every fall. He saved $1,296 on the immediate tax bill and eliminated the exemption compliance exposure permanently. “The accountant was right,” Dale said. “And the permanent plate solves the whole thing.”

Megan — Bentonville, Yamaha Wolverine RMAX4 ($25,000) + Polaris Sportsman 570 ($10,000)

Megan is a logistics director at a Walmart supplier. Her husband is a mountain bike trail builder. They ride together, often with their two kids, and bought two machines in the same week: a four-seat Yamaha Wolverine RMAX4 for family rides and a single-rider Polaris Sportsman 570 for trail-scout work. At 9.75% Bentonville sales tax, the two-machine combined tax was $3,413. Montana LLC route: $849 for the RMAX4 (LLC included) plus $549 for the Sportsman under the same LLC. Total: $1,398. Two permanent plates. One LLC. She saved $2,015 on day one and locked in $0 forever after. “The LLC is a one-time thing that covers everything we own,” Megan said. “Next year’s dirt bike goes under the same LLC for just the per-vehicle fee. That’s it. Forever.”

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Who Benefits Most from Montana LLC Registration in Arkansas

The math isn’t identical for every buyer, but the pattern is straightforward: serious machine, high-tax market, plan to own it for years, and the permanent plate pays for itself before your first oil change.

• NW Arkansas tech and retail buyers in Fayetteville, Bentonville, and Rogers, where 9.75% on a $40,000 UTV runs nearly $4,000. The permanent plate cost is $849, one time, never renewed.
• Ouachita and Ozark sport UTV riders running Polaris RZR Pro R Turbo, Honda Talon 1000X-4, or Arctic Cat Wildcat XX machines, where the purchase price is high and the permanent plate eliminates the renewal cycle.
• Cattle and row-crop farmers who also hunt, who can’t legitimately claim the “exclusively” ag exemption and would rather skip the audit risk entirely. Permanent plate, dual use, zero exposure.
• Arkansas hunters running Kawasaki Teryx KRX or Yamaha Kodiak 700 ATVs into WMAs across the Delta and the Ouachitas. One-time fee. Permanent plate. Never renew.
• General contractors using UTVs on rural job sites who already manage a fleet of vehicle renewals. The permanent plate is one less renewal to track, forever.
• Multi-vehicle households, where one LLC covers multiple machines under a single structure. One LLC, unlimited permanent plates, one-time per-vehicle cost.
• Riders who travel across state lines to Hatfield-McCoy in West Virginia, Sand Mountain, the Ouachita Oklahoma side, or Muddy Bottoms in Louisiana. A permanent Montana plate is recognized everywhere.
• Collectors and enthusiasts adding an Arctic Cat Wildcat XX or a similar high-end machine to a growing collection, where each vehicle gets its own permanent plate under the existing LLC.

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How Zero Tax Tags Gets You a Permanent Montana Plate

Full service, end to end. We form the LLC with the Montana Secretary of State. We provide the registered agent with a real Montana address. We handle the title transfer at the Montana county treasurer’s office. We ship your permanent plates to your address in Arkansas. You don’t visit Montana. You don’t fill out Montana paperwork. You don’t talk to a Montana clerk. You sign a few documents at your kitchen table and the plates arrive in the mail.

The pricing is straightforward and the plate is permanent:

• ATV: $749 total ($549 service + $200 LLC). Permanent plate. $0 per year after. $0 forever after.
• UTV: $849 total ($649 service + $200 LLC). Permanent plate. $0 per year after. $0 forever after.
• Second vehicle under the same LLC: ATV $549, UTV $649. No second LLC fee, because the LLC is already in place. Another permanent plate. Same forever-after pricing.
• One LLC, unlimited permanent plates. Add a dirt bike, a second UTV, a trailer, a boat, all under the same LLC for the per-vehicle service fee only.

The timeline is fast. Most clients have permanent plates in hand within a week of submitting their paperwork.

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Who This Is Built For

This is built for Arkansas riders who care about two things: paying less, and paying once. If you’re buying an ATV or UTV in Fayetteville, Bentonville, Fort Smith, Hot Springs, Little Rock, or anywhere else in the state, and your machine costs more than $10,000, the math almost always works. The one-time permanent plate cost is lower than your sales tax bill in year one, and the Montana side is $0 for every year you own the machine after that.

If you ride trails. If you hunt. If you work the property. If you travel across state lines to Hatfield-McCoy, Sand Mountain, or the Oklahoma side of the Ouachita. If you own more than one machine. If you plan to own this machine for years. The permanent plate works.

The one soft qualifier: for very small machines under $8,000, the savings are real but the margin shrinks. Call us before you decide. We’ll run the actual math against your purchase price and your zip code. The first call is free, the analysis is honest, and if Montana doesn’t beat Arkansas for your specific machine, we’ll say so.

If you’re buying an ATV or UTV worth more than $10,000 in Arkansas, the permanent plate math almost always works. Call us before you hand the dealer that tax check. The first call is free.

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Frequently Asked Questions

Will Arkansas flag my Montana-plated ATV or UTV?

A valid out-of-state registration is recognized in every state under federal commerce clause precedent. Arkansas can enforce its own operating rules (insurance where required, OHV decal for federal land, road-use restrictions under § 27-21-106) but it cannot invalidate a lawfully issued Montana plate. Thousands of Arkansas riders already use this structure without issue.

Does Act 922 mean I don’t need Montana anymore?

No. Act 922 of 2025 lets some Arkansas cities and county judges designate specific streets for UTV use, but most haven’t opted in, and the program is patchwork. Even where it applies, Act 922 still requires annual motor vehicle registration renewal plus motor vehicle insurance. Montana’s permanent plate costs less, never renews, and is recognized regardless of which Arkansas county judge has signed an executive order.

Do I need to visit Montana?

No. Zero Tax Tags handles every step in Montana on your behalf. We form the LLC, provide the registered agent, transfer the title at the Montana county treasurer’s office, and ship your permanent plates to your Arkansas address. You sign documents at home and receive plates by mail.

Can I insure a Montana-plated ATV or UTV in Arkansas?

Yes. Off-road and recreational vehicle insurance from major carriers (Progressive, Allstate, GEICO, Foremost, others) covers Montana-titled machines without issue. Most Arkansas-resident clients keep their existing insurer and add the machine under the LLC. Insurance is based on where the vehicle is principally kept and where the owner resides, not the plate.

Does this work for an ATV I already own?

Yes. We can move existing-owned machines into a new Montana LLC. The vehicle gets a clean Montana title, a permanent plate, and the renewal cycle ends. If you bought your machine recently in Arkansas, you’ve already paid the sales tax, so you won’t recover that. But every future year of renewal under Act 922 disappears, and the plate is permanent from the date we issue it forward.

How much does Zero Tax Tags charge?

ATV registration is $749 total ($549 service plus $200 LLC). UTV registration is $849 total ($649 service plus $200 LLC). Each additional vehicle under the same LLC is $549 (ATV) or $649 (UTV) with no second LLC fee. Both prices include a permanent Montana plate — you pay once, and that plate is yours forever.

Can I register multiple ATVs under one LLC?

Yes. One LLC can hold an unlimited number of permanent-plated vehicles. Most multi-machine households (two UTVs, a dirt bike, a trailer) run everything under a single LLC. Each additional machine is charged the per-vehicle service fee only. The LLC itself is a one-time setup.

What if Arkansas changes its laws?

Arkansas can change its motor vehicle and OHV laws at any time, and Act 922 of 2025 shows the legislature is willing to revisit the framework. But Arkansas cannot retroactively invalidate a Montana plate, and Montana’s permanent plate provision is written into Montana state law. Whatever Arkansas does, your plate remains a valid Montana plate for the life of your ownership.

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See how Montana LLC registration helps ATV and UTV owners in neighboring states:

• Louisiana ATV/UTV Registration: The 10.75% Sales Tax Problem
• Alabama ATV/UTV Registration: The Highway Ban and High Sales Tax
• Mississippi ATV/UTV Registration: The SB 2258 Partial Fix
• Georgia ATV/UTV Registration: The Road Ban and High Sales Tax