California Advances Bill Cracking Down on Montana Tax Shelters

A California bill meant to crack down on tax dodgers using the “Montana Loophole” to shield their high-end cars and RVs from sales taxes and registration fees advanced out of the state Senate.

The legislation (SB 1406) would allow the California Department of Tax and Fee Administration to more effectively connect California owners of luxury cars, boats, and recreational vehicles to limited liability companies established in Montana. These LLCs allow out-of-state residents to register their vehicles in Montana, which has no sales tax, lower registration fees, and relatively lenient emission control rules, to escape the higher costs of ...