California Cracks Down on Montana Supercar Tax Loophole; 14 Charged with Tax Evasion

California is cracking down hard on wealthy vehicle owners exploiting a Montana registration loophole to evade state vehicle taxes. In the past, high-net-worth individuals established LLCs in Montana and registered multi-million-dollar supercars—such as the McLaren Elva, Porsche Carrera GT, and Ferrari TdF—under Montana license plates to avoid California’s steep vehicle taxes. Now, the office of California Attorney General Rob Bonta has announced that 14 vehicle owners are facing charges for alleged tax fraud. Although their vehicles bore Montana plates, they were primarily used in California. The total value of the implicated vehicles exceeds $20 million. California’s vehicle taxes fund critical infrastructure, schools, and community services. While the tax rate is relatively high, paying it is a legal obligation for residents. If you truly want to avoid these taxes, consider moving to Montana—otherwise, pay what you owe on your supercar.