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Here's How California Closed the Montana License Plate Loophole

The law expands tax rules to treat some shell companies as California residents, after officials estimated $10 million in annual lost revenue.

Summary by The Drive
Everybody's favorite automotive tax evasion scheme just got a whole lot trickier to pull off.

5 Articles

New York PostNew York Post
Lean Right

Gavin Newsom closes ‘Montana-loophole’ as damning texts reveal what luxe car buyers saved on taxes

Gavin Newsom signed a law closing an LLC tax loophole after a $600,000 Lamborghini owner bragged online about evading $70,000 in California taxes.

·New York, United States
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la Nacionla Nacion
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Newsom Signs a New Law in California and Annuls the Attempt to Evade Taxes on Luxury Car Purchases

Learn about the four signals California will use to detect LLC linked to luxury car tax evasion following the signing of Newsom SB 1406.

·Vicente López, Argentina
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The DriveThe Drive
Center

Here's How California Closed the Montana License Plate Loophole

Everybody's favorite automotive tax evasion scheme just got a whole lot trickier to pull off.

·Miami, United States
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Los Angeles TimesLos Angeles Times
Lean Left

Luxury-car buyers who use 'Montana loophole' to dodge California taxes are target of new law

SB 1406 cracks down on residents who primarily use their vehicles in California, but create out-of-state shell companies to purchase and register them elsewhere to skirt taxes.

·El Segundo, United States
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Motor1.comMotor1.com

California Is Finally Cracking Down On Montana's Supercar Tax Loophole

A new California law will make it harder for wealthy residents to register vehicles outside the state to avoid paying taxes on high-priced purchases.

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Motor1.com broke the news on Monday, October 5, 2026.
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