Local law here is, they must have tags and atleast parking insurance or they will be towed. Problem is in most small towns the guy 10 houses from you can have 10 different cars sitting there and no one will say a word if he knows the right person. If I were you I'd call the town office and ask what I need, will tag,parking insurance and a car cover work ?
A few years ago they went through town and tagged atleast 50 cars here and I'll be 30 of them got towed. I am glad I live in the middle of no where !! I hope things work out !