Illinois Clamps Down on Dodging Vehicle Taxes Via Montana LLCs

Illinois is clamping down on residents that register their vehicles through Montana limited liability companies to avoid sales taxes and registration fees in the Land of Lincoln under a broad tax bill that won support in the Legislature over the weekend.

A narrow provision slipped into the fiscal year 2026 revenue bill, HB 2755, permits the state to link Illinois residents to their assets held in Montana LLCs. The language was requested by David Harris, director of the Illinois Department of Revenue.

The action in Illinois comes one month after Bloomberg Tax published an extensive examination of Montana LLCs, ...