Montana’s Vehicle Tax Loophole Draws Out-of-State Attention

Everyone wants a fancy whip. I've never met a single person who didn't have a dream car. It's fun to think about, right? Maybe yours is a McLaren, a Bugatti—or if you're like me, maybe it's an EarthRoamer. Dreaming is the easy part… but the reality of owning a high-end vehicle? That's where it gets tricky.

Let's talk about the one thing most people forget: taxes. Anyone seriously shopping in the supercar aisle knows that the price tag is just the beginning. The taxes alone can be eye-watering. That's where Montana steps in, like a knight in shining armor for out-of-staters.

Montana doesn't have sales tax, which makes it a popular place to register luxury and exotic cars—even if the buyer doesn't actually live here. It's become kind of a well-known tax loophole. Out-of-staters form Montana LLCs to register their vehicles here and avoid the extra cost.

But big news—other states are starting to catch on, and they're not too happy about it. More and more, states are cracking down and passing laws to go after folks who register in Montana but actually live (and drive) somewhere else.

It's all about financial strategy. But that strategy might not be safe for much longer. Laws are changing, and the free ride could be coming to an end.

The Governor of Utah, Spencer Cox, recently signed bill SB52 that opens the door for investigations into Utah residents who own cars registered here in Montana. They are looking for an estimated $100 million in back taxes and penalties.

Other states, such as California, are utilizing the DMV's plate readers to hunt down Montana-plated cars and back-tracking registrations.

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While it is uncertain how many states will follow the lead of California and Utah, but the trend of shutting off the cheat code is in full swing.