10/10/2026
https://m.facebook.com/story.php?story_fbid=1510458544447116&id=100064489552441&mibextid=wwXIfr
Bye bye Montana plates in CA…
Gov. Gavin Newsom has signed Sen. McNerney’s SB 1406 into law, targeting the so-called “Montana Loophole,” which California estimates costs the state about $20 million in lost tax revenue each year.
The law targets California residents who use Montana shell companies to purchase and register luxury vehicles, such as Ferraris and Lamborghinis, to avoid California sales taxes and vehicle license fees.
Under California law, vehicles purchased out of state generally must remain there for at least one year to avoid California use taxes. SB 1406 expands the definition of a California resident to include certain shell companies when at least one member is a California resident.
The law also allows the California Department of Tax and Fee Administration to hold individual members of these companies responsible for unpaid taxes.
Businesses may be considered shell companies if they:
* Have no legitimate business purpose
* Lack a physical location outside California
* Have no employees or W-2 payroll
* Fail to file required federal or out-of-state tax returns
