Don't even think about registering your RV in Oregon if you don't live there!

(MAY, 2001) —Oregon DMV is sending a message to the rest of the country: if you want to register your vehicle in Oregon, you'd better be an Oregonian. It's a lesson many won't want to learn the hard way.

DMV is starting an educational campaign this month that informs people of the risks involved in registering vehicles illegally. One ad tells of a couple from the Seattle area who illegally registered their vehicle in Oregon. When caught, a Washington court fined them $101,568 in penalties and back taxes.

The educational campaign consists of advertisements in national travel magazines, theatre slides and print materials targeted at specific areas. Oregonian's aren't paying for the campaign-it's funded through fines that were collected through illegal registrations.

"Many people simply assume it's okay to register their vehicles here," said Lana Cully, manager of DMV Vehicle Programs. "But if they aren't Oregonians or domiciled in Oregon, there could be some very severe consequences."

The fee for vehicle registration in Oregon is lower than most surrounding states, and Oregon collects no sales tax on the purchase of new vehicles, creating a temptation for some non-residents to break the law.

Other states are cracking down on illegal registration as well. Washington and California employ agents whose job it is to ferret out people illegally registering their vehicles in Oregon. These states stand to lose valuable tax dollars when people illegally register vehicles in Oregon, so the incentive to discourage the practice and punish the offenders is great.

During a one-day operation in June 1998, officers and agents from four jurisdictions in Washington issued 70 citations for improperly licensed vehicles.

When someone is caught illegally registering in Oregon, that registration is immediately cancelled. All fees paid to the State of Oregon are retained, and the state where the vehicle should be registered is contacted.

"The issue is that other states are losing out on revenue that rightfully belongs in their state,"' Cully said. "It also creates a workload issue for us-first in registering a vehicle here, then in canceling that registration. It isn't fair to Oregonians, and it isn't fair to their home states."

"There are several ways in which DMV learns about illegal registration. Citizens from other states may call to report neighbors, or vacationing Oregonians may strike up conversations with people they think are from Oregon, only to find out they are only using Oregon license plates to avoid paying taxes," Cully said.

The legal requirements for Oregon residency or domicile include living in the state for six months or more, paying income taxes to Oregon, having an Oregon driver license, and attending public school and paying resident tuition.

The fraudulent activities are not limited to Oregon's neighbors, either. Officials in Texas, Arkansas, Missouri and Virginia estimate that they average $300,000 annually in lost taxes and registration fees due to their residents registering cars in other states.

"That's a lot of money for states to be losing," said Rick Krebs, manager of DMV's Business Regulation. "When we hear about someone with an illegally registered vehicle, or a dealer who assists a non-resident to register here, we investigate. It can be serious enough to warrant the participation of other agencies in the investigations, including the Federal Bureau of Investigation and U.S. Postal Inspectors."

The problem isn't limited to individual motorists, either. Some auto dealers and RV dealers have paid the penalty for illegal registration as well.

In one case, an Oregon RV dealership supplied out-of-state buyers with Oregon addresses to use when registering their vehicles. The salespeople involved each faced penalties of up to five years in prison and a $250,000 fine.

"Recently an Oregon dealer paid a penalty in excess of $3 million for this type of fraudulent activity," Krebs said. "Investigations are currently taking place against other Oregon dealers for the same type of criminal activity. The names of those out-of-staters registering their vehicles here are being forwarded to the appropriate states."

For more information on the educational campaign or legal requirements for registering vehicles, Crakat.com