California Bill Tackles Tax Dodges Under the Montana Loophole

California would arm tax enforcement agencies with broader authorities to curb tax evasion happening through the “Montana Loophole,” under a bill proposed by the chair of the state Senate Revenue and Taxation Committee.

State Sen. Jerry McNerney (D) this week introduced SB 1406, which would permit the California Department of Tax and Fee Administration to more effectively connect California drivers of luxury cars, boats, and recreational vehicles to limited liability companies established in the Big Sky state.

Thousands of California residents have chosen in recent years to register their vehicles and vessels in Montana, which has no sales tax ...