The 'Montana Loophole' Scheme
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The 'Montana Loophole' Scheme
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California regulators are cracking down on the so-called “Montana loophole,” under which Californians use LLCs to register luxury cars in Montana—avoiding state sales and registration taxes. Since 2023, over 2,500 vehicles have been flagged, costing California more than $10 million in lost revenue; 14 individuals and nearly 500 dealers are now under criminal investigation.
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