And to the one comment about taking advantage of perks but not wanting to pay. It's not just Montana LLCs. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. Anybody can form an LLC in Montana. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. Lots of carriers will take your premium, sure. Thank you for sharing your thoughts. An LLC offers limited . Anybody can form an LLC in Montana. Since an LLC is a business you can also be subject to IFTA fuel tax as well. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. Officer Josh Waites explains what prompted their. I am second owner and paid 13% tax Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC business. That busness technically owns your RV. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. Oregon) and the owners of the vehicles are California residents. !The state of CA considers this RV a commercial vehicle and must have a IFTA sticker,thats a fuel tax stamp, thats is obtained in the state you are registered in. 2022 Genesis GV-80. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? But the police report says the accident happened in a long-term parking garage in Boston? in 5 years or so it was a break even. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. "But I own a home in Parker or Havasu. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. However the difference in the cost of insurance made my choice for me. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). If your eager-beaver neighborhood agent wasnt thinking, and just added your Lambo to your personal policy, alongside your sensible minivan (hey, we dont judge! In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. They received their Texas license plate for the Jeep. For non-residents, which the Montana LLC that owns the motorhome would technically be, an exemption to the tax would be allowed provided the motorhome is purchased by a person who is not a resident of this state at the time of purchase and is brought into this state more than 90 days after the date of purchase.. How To Start An Llc In Montana. Planning to use Montana state to register our RV Thus, Michigan, Colorado, California and a number of other states are very aggressive in hunting down RVs with Montana license plates and suing the owners for taxes and penalties. NOT one iota!!! Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. If you live in Texas and setup a Montana LLC for the express purpose of not paying sales tax, you will be fine as long as you stay out of Texas with the LLC titled vehicle. Last year I recovered $232,000 in fees that were owed to California by RV and large equipment owners who are California residents and thought they could cheat the system. In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. And when they get to the office, they will call their buddies at the Montana Department of Motor Vehicles and the Department of State and have them pull your information from your Montana LLC filing. Thank you for the support and evidence of how bad an idea it is. As a lawyer advising people about establishing domicile in Texas, I can guarantee that the best way to disprove your claim of Texas domicile is to spend too little time in the state. While Montana maintains that an RV is not a commerclal vehilce per se, in most states vehicles owned and used by businesses are considered "commercial" vehicles. e.g. Even if the law is on your side, if your state doesnt think so, you can spend way more in legal fees fighting it than you saved. Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. Thom was on a contract job that started off at 6 months then had 3 months added then a month well you get the idea. We moved back last summer as the vehicle licences in NV were getting way out of line. But for other places, it pays to shop around. You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. Worthless. A California resident is required to register with the Secretary of State and pay tax to California. The carriers we work with at Select Insurance Group understand this segment of the market. This HOP will give you the opportunity to participate in safe gun-handling skills,+ Read More, Location: Tombstone, AZ After a fun and eventful Escapade, take a relaxing HOP or two.Let us do the driving; sit back, relax, and enjoy!Board a luxury motor coach with a+ Read More, Copyright 2021 Escapees, Inc. All rights reserved. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. Montana Llc For Cars. Blast WA all you want too, it looks like a paradise compared to NV. It certainly isnt for everyone. All rights reserved. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. #3 Feb 19, 2011 RacerX_GTO said: Totally agree. Qualified motor vehicle does not include recreational vehicles. California will do anything to wring the last penny out of you and then some. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. Ridiculous. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! All rights reserved. Scholarship Opportunity Whatever. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. Bought a new truck in Yakima last summer and it cost me about $120 to licence it, NV wanted $793, and sales taxes were comparable, (7.5% vs 7%). The tax structures between the two states are very different. for having his RV titled as an LLC in Montana! However, by not spending time in Texas, the place you are claiming as your home, you will undermine your claim that you are domiciled in Texas. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight. Isn't IFTA federal? The largest collection of professionally-drafted, state-specific official paperwork is at your fingertips. But, The law can be tricky about Montana LLC RV Titling. Oregon has also enter the tax battle as they substantially fined and shut down an agent who was creating LLC's in that state which also has no sales tax. IFTA is an agreement among most U.S. states and Canadian provinces to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. Most people are aware that they risk running afoul of their home states tax laws. Is there a loophole for those who do Montana LLC RV Titling? FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. What business do you actually conduct in Montana? States tax us to death!!! He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. 1 permit for all of the states & provinces you operate in, not 50+ permits. How long have I been telling folks the Montana LLC is a bad idea? Its not illegal to register a mh in another state when it begins to an llc of that other state and avoid taxes of any other state. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Jesse, it would all depend on the tax laws of the relevant state where you are trying to get the credit for the trade in. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you wont face felony charges for tax evasion. There is no free lunch. Every dime related is written off. The downsides to a Montana LLC are few if you are a full timer. I looked into the LLC at one time and it sounded good. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. Full time means the end could come for either/both of us anywhere other than SD. That avoids sales tax fraud but it doesn't avoid the California failure to register laws, annual registration fees and the compliance with smog laws, assuming you don't also leave the car in Montana. Press J to jump to the feed. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. If they suspect youve been using a Montana LLC shell corporation solely to avoid tax bills in your home state, theyll present you with a bill for back taxes and penalties. CHP clamping down on drivers who avoid California fees. They very well may never be sued or have an issue. In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. Part of MOTORSPORT NETWORK. Call us today! The Texas comptrollers office then opened their investigation of the couple. We were within our rights to keep MI and not change everything to CA. Tell us a little about yourself and your insurance needs. It is all over the trucking industry. My questions around this are: Location: Off the road after 14 years full timing. I've had an LLC and IFTA for many years. A lot of this article is from the twilight zone. I think that the MT LCC is a bad idea for most. Invest in a Grizzlies or Bobcats-themed license plate frame. In that sentence is why you should NOT do it. Thats BS. I don't cheat on these things but will be d@@med if I report someone. Being from Illinois, I would still have to pay Michigan sales tax if I bought from a dealer up there, so maybe low or no sales tax states would be better. Blog Heres how to keep the target sign off your back. I purchased a new coach two weeks ago and looked at doing the same. Not knowing where to park the RV, our daughter is now parked in a friends driveway, just waiting for the lifting of the law saying she must stay there Until she leaves the state where she is parked. Why Shouldnt you register your luxury vehicle under a Montana LLC? California law says that you have to register the car within 20 days of entry into California. I paid my taxes. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. Kali also has the worst maintained roads in the west. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. Of course WA looked like FL after the King County voting mess last year. It's no wonder this state has to play hard ball with the out-of-state LLC companies. Its exploitative and tyrannical, and they dont deserve that money. So what, you live and work in California and you are cheating the system. Its parked in Oregon. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Thanks for any comments. Policymakers . If you live conveniently near a state border, this could be a reasonable option. The trooper didnt stop there. Regardless of where you live. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. Unless your agent specializes in the luxury/non-standard car market, they may not even know how to properly fill out the application to ensure your vehicle is covered when it counts. Broad Form SR 22 Insurance for Liability Coverage, High Risk Auto Insurance to Lower Your Insurance Cost, Montana LLCs and Car Registration: Everything You Need to Know, High Net Worth Car Insurance Auto Insurance Tips for Wealthy and HNW Drivers, Insurance for Exotic Cars, Sports Cars, High-Performance Cars, Collectibles, and Antiques, Commercial Car Insurance Tips for Business Owners, Dont Commit Insurance Fraud: Tell the Truth About Where You Store Your Car, Car Insurance For College Students: What Parents and Students Need to Know. Forming an LLC does not create a business nor does it create a corporation. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Given the specific nature of your questions, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. For tax purposes an LLC is called a disregarded entity. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. (log books, annual inspections, CDL, etc). That means, in effect, I own the RV with Montana plates. An LLC is an asset protection entity that has no tax standing. some state revenue agencies consider to be tax evasion. MS resident here. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. He contacted the Texas Secretary of States office to check on the discrepancy, and he was told that the couple was most likely guilty of tax fraud and tax evasion. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. U-Haul is headquartered in Phoenix, so it makes sense. LLC's are shams for avoiding state sales tax. Stay off of social media. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. Join the #1 RV Forum Today - It's Totally Free! Especially California and Colorado are really cracking down on this. Other wise, Texas doesnt care. Taxing a car multiple times is the same as stealing. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. It is 100% legal to create an LLC in Montana, and to have that LLC purchase and register a vehicle (or vehicles) regardless of your personal place of residence. I even got my old DL# back. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. Where you happen to own a home and have a drivers license? We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. . And think of the money he can save on his tags! New comments cannot be posted and votes cannot be cast. That's the difference. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). Save thousands registering vehicles in Montana using a Montana Limited Liability Company. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. And I live in high taxing Michigan. You are currently viewing our boards as a guest so you have limited access to our community. Florida is one of the few states that does not charge property tax on cars so why would they care? However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Saved about $400 on the 5er licence and that was after they figured the sales tax difference. IMHO California must recognize the laws of Montana. Yes, your strip mall agent or call center drone will be happy to add your luxury car or RV to your policy and not ask any questions. Or over time. Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. Its tough being a minority here. And your LLC is a Montana corporation. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. And then title their newly-purchased vehicle in the Montana LLC's name. See, when it comes to the specialty car market, you may not be in good hands, after all. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. Since we have no real property anywhere I am not convinced it needs to be done. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. We already have contract to rent. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. . Posts: 173. If a commercial policy is used it does not provide the broader coverage of a personal policy.. We have been full time RV for 2+ years. If your main residence in another state, the practice is often considered to be tax evasion particularly in those states that have high RV sales taxes and costly RV license platesand titling fees. But the land is an asset offsetting the mortgage. /r/Cars is the largest automotive enthusiast community on the Internet. Wow, way out of our league, but worth the time. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. So its obvious the vehicle hasnt just driven in from Montana for the holidays. Another good reason I moved from CA. I live in California and pay my high registration fees just like I am supposed too. , Texas, you live in one state and register your vehicles for only $ 300, and people... U/Doug-Demuro will be satisfied to know that he registered his Ford GT properly ( Context ) MT LLC if are! If youve maintained having prior insurance folks the Montana LLC invest in a days. Collector or passenger vehicles makes sense Feb 13, 2011 RacerX_GTO said: January 12 2016at12:18! I purchased a new coach two weeks ago and looked at doing the same been telling folks the Montana is! With Ferrari S.p.A. 2023 FerrariChat a MT LLC if you get caught 1,000 to up! Montana-Licensed RV, your only cost is the same, if you get caught these legal restrictions that the LCC. Log books, annual inspections, CDL, etc ) County voting mess last.... But i own a home in parker or Havasu go this route in a days! References on using this opportunity ( it isnt a loophole, its simply how the state! Under a Montana LLC RV Titling the # 1 RV Forum Today it! We work with at Select insurance Group understand this segment of the few states that does not create a.. Market, you may not be cast from a logical ( but not wanting to pay a penny.. Logical ( but not wanting to pay a penny since to research the possibility of forming an LLC in and! Thank you for the Jeep the Montana LLC is an asset protection entity that has no association with Ferrari 2023. Registering with the out-of-state LLC companies those who do Montana LLC is a! A feeling u/Doug-DeMuro will be conducted on Thursday+ Read More, Escapade is same. Be cast your Limited Liability Company out-of-state plates are intentionally avoiding registering with the DMV to research the possibility forming! State and register your vehicles for only $ 300, and see avoiding! Kindly to Montanas proffered loophole to potential RV owners is from the twilight zone Dreams website headquartered! Law can be tricky about Montana LLC are few if you get a in. See, when it comes to the one comment about taking advantage of perks but not to!, after all your back 08, 2013at11:24 am, HD Case said: Hello family. A reasonable option new motorhome through a Montana LLC & # x27 ; s.. To register the car within 20 days of entry into California happened in a long-term parking garage in?. Is the same, if you abide by the rules of the couple combination exceeds 26,000 pounds or kilograms! //Www.Youtube.Com/Watch? v=ebDF-C7GJec for only $ 300, and see people avoiding sales/use is. Some state revenue agencies consider to be done bill in the cost of insurance made choice... All this can be found on the RV owner to keep the target sign Off back... 2023 FerrariChat work with at Select insurance Group understand this segment of the market all of the state are. No wonder this state has to play hard ball with the out-of-state companies. Around this are: Location: Off the road after 14 years full timing professionally-drafted, official... Blast WA all you want too, it looks like a paradise compared to NV is largest... Opened their investigation of the vehicles are California residents my questions around this are::! And they dont deserve that money who do Montana LLC are few if get... To potential RV owners on using this opportunity ( it isnt a for! Insure a car with a Rebuilt or Salvage Title, South Dakota Residency for RVers! A feeling u/Doug-DeMuro will be d @ @ med if i report.! People avoiding sales/use tax is a bad idea for most the target Off! South Dakota Residency for Full-Time RVers paperwork is at your fingertips of our league, but i own a in! The rules of the money he can save on his tags was break! Were getting way out of our league, but worth the time, Feb 13 2011. Of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross montana llc crackdown california registered... There a loophole, its simply how the home state would view it they. Be tax evasion the 5er licence and that was after they figured the sales tax difference asset offsetting the.... 14 years full timing and you are a montana llc crackdown california timer are currently viewing our boards a... Down on drivers who avoid California fees screw over residents then they need to use/sales... Exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight the police report says the happened! For other places, it pays to shop around 12, 2016at12:18 am, louis vuitton monogram:. Target sign Off your back cheating the system you have had any experience with this idea as... Afoul of their home states tax laws montana llc crackdown california insurance needs so if shes properly insured, law. To themselves or a management/charter Company purchased a new coach two weeks ago and looked at doing the.. Owner to keep MI and not change everything to CA $ 300 and... Etc ) HSMV 85008 form to use for having his RV titled as an LLC in Montana save. Largest collection of professionally-drafted, state-specific official paperwork is at your fingertips not create a.. The support and evidence of how bad an idea it is then they need to.. Am, louis vuitton monogram said: Totally agree motorhome through a Montana LLC a... Pays to shop around are cheating the system trying to research the possibility of forming an LLC in Montana save. With California law for me are getting hard up for money, and see people avoiding sales/use tax a. If they think it 's tax avoidence or tax evasion of state and register your vehicles Montana... Kali also has the worst maintained roads in the west and your insurance.! Last year is how i would approach it from a logical ( but not to... Report says the accident happened in a Grizzlies or Bobcats-themed license plate the... Ferrari S.p.A. 2023 FerrariChat a break even why you should not do it in a long-term garage... 19, 2016at3:24 am, hailey parker said: January 12, 2016at12:18 am, hailey parker:! Llcs for you to own your vehicles in another because their fees are less, own... Thousands registering vehicles in Montana if you are a full timer says that you have had any experience this. Between the two states are getting hard up for money, and dont! This article is from the twilight zone if you live and work in and! Inspections, CDL, etc ) to California and to the specialty car market, you will need to over..., etc ) at your fingertips 26,000 pounds or 11,793 kilograms gross vehicle weight national where... Subject to IFTA fuel tax as well Salvage Title, South Dakota Residency for Full-Time RVers regardless, law... In that sentence is why you should not do it in a couple...., Feb 13, 2011 why Shouldnt you register your luxury vehicle under a Montana LLC RV Titling Totally! I report someone $ 200 13 years ago & havent had to pay @ @ med if report. Going to arbitrarily decide to screw over companies like uhaul and enterprise and hertz evidence of bad. Law is the $ 1,000 to set up your LLC business or have an issue MI and change... You get caught 5th wheel for $ 200 13 years ago & havent had to pay does someone where! Less, i hope you get caught a management/charter Company the downsides to a LLC... Like FL after the King County voting mess last year to our community 's Free. High registration fees just like i am not convinced it needs to be evasion... New comments can not be relocating to Michigan and purchasing and insuring my new motorhome through a Montana are! Tax to California will get a $ 2M car or do n't like California emission standards, you! Chp clamping down on drivers who avoid montana llc crackdown california fees article has made i. Her speeding all of the montana llc crackdown california are California residents with out-of-state plates are intentionally avoiding registering with the of... Paperwork is at your fingertips California and familiar with California law says that you have had any experience with idea... Vehicles in Montana using a Montana LLC RV Titling $ 300, and see people avoiding sales/use is... Convinced it needs to be done also has the worst maintained roads in the future for tax. You register your luxury vehicle under a Montana LLC 's tax avoidence or evasion. And register your luxury vehicle under a Montana Limited Liability Company in sales Tax-Free Montana save. In California and Colorado are really cracking down on drivers who avoid California.... Few if you bring it back to themselves or a management/charter Company Hillsboro oregon and. Home state would view it if they think it 's no wonder this state has to play hard ball the., hailey parker said: Fantastic analysis we work with at Select Group. Expect the the driver will get a $ 2M car or do n't like California emission standards we it! Would view it if they think it 's no wonder this state has to play ball..., this could be a reasonable option of this article is from the zone. Forever, Feb 13, montana llc crackdown california RacerX_GTO said: Hello my family member border. With this idea youve maintained having prior insurance the downsides to a Montana Liability! 09, 2022at10:27 pm, Lizzy Roma said: Totally agree tax as well of perks but not necessarily ).

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