You should read the article in the NY Times today. I would provide a link, but I am certain it is paywalled.
To summarize the article, California has been gathering information through license plate readers, dealer data, and other sources to identify California residents who evade paying vehicle sales and registration fees by registering in Montana, a state with no vehicle sales or registration tax. They are also going after dealers who participated in the illegal scheme. And it isn't only Montana. They are looking at plates from states that have low or no sales tax and registration fees.

Millions of dollars are involved. They have texts and emails from owners bragging about evading the onerous sales tax in California.

 

Many sources have picked up the story. Seems like the DMV is targeting CA dealers that are not collecting sales tax for cars remaining in CA. Big no-no. There may be individuals snared in this operation, but they are not the focus.

 

I could never live in CA, OR, WA. The noise rules, the 93 octane gas, the trade in tax, $9 milk, cant wash your cars when you want. Just not a very good place for a car person. Carolinas are very nice with nice weather and if you must, go to FL for CA like weather.

WA now started this 10% luxury tax which is a disaster for car people there.

 

CA has best weather and best roads to drive...if your a car nut hard to beat.

 

I subscribe. Here’s a gift link. Says they’re going after Alaska, Oregon, and Delaware registrations as well (no sales tax states).
I don’t support people with no Montana residence registering their car there. But as an Oregonian whose Oregon-only business has to collect sales tax FOR California for CA customers buying from me, a state that remits no sales tax back to Oregon (or other sales-tax free states) in return for purchases made in Oregon by California residents, I see CA’s attitude as a bit two-faced.

https://www.nytimes.com/2026/03/08/u...smid=url-share

 

^ Thanks. Terribly written article.

 

It's "only" 8% on any amount over $100k (yes, I'm being sarcastic).

 

What good are the roads when you have to use **** gas, cant put your choice of exhaust on, cant have as many cars in the first place? I must have saved the cost of a loaded GT3RS times two on tax credit in my life time.

Cheaper to ship a car to Germany 6 months each year and drive in much better roads with a stop in Nurburgring than deal with CA.

 

umm… shipping your car to another country is not realistic. Being able to leave your driveway and in the mountains or beach in an hour in a beautiful environment is hard to beat which is why Cali will always be Cali.

 

Yet here we are, living rent free in your mind.

 

I have 7 Porsches. Probably worth around $2M in aggregate. All the aftermarket exhausts, cats, tunes I have on them. All the 93 octane I use. All the car washing I do. Not for me. The amount of money I save on taxes when trading in these cars is substantial. The amount of insurance I save is substantial. My monthly insurance premium on 7 cars is 1150 bucks. I can assure you I can insure 2 cars in CA for that.

It was a joke to suggest shipping to Germany. Thats how I unlikely I consider CA as a place to live.

 

Buying a car with a Montana LLC to avoid sales tax is only tax evasion if your state specifically outlaws it - otherwise it is tax avoidance. As a parallel, Delaware currently has 1.56 million LLCs registered in that state but only about 1 million residents. Smart people make financial decisions to minimize tax liability and they do so legally. Sure, it might **** others off that this is happening but it is not illegal to do this.

Here are some other tax "loopholes".
1. Only people who can afford a house get the home mortgage deduction
2. Only people who work in jobs that offer a 401(k) can take that deduction
3. Only people who have kids can claim the child tax credit.

Granted these deductions are codified in law but so is a MT LLC. The folks who own these LLCs are following MT State law exactly and those laws are not disallowed by most other states.

Is it unfair to childless renters who don't work at jobs with 401(k) benefits? Are they subsidizing all the others who are taking these tax credits? You can say that about anybody who itemizes anything.

 

Please, I beg of you, don't try to use logic and common sense on an internet debate, especially when hoi polloi have their pitchforks already out.

 

^ This news story and the others circulating right now are regarding an investigation into CA dealers who are not collecting sales tax on cars they (allegedly) know are remaining in the state. Nothing legal about that.

 

It's illegal if the state specifically says you have to pay taxes if the car is parked and driven within the state for the majority of the year. The texts and registering it out of state are clear supporting evidence that those folks are trying to not pay taxes for vehicles parked and driven in CA.