A newly enacted California law will make it harder for residents who want to avoid paying taxes on their high-priced supercars and sports cars. Senate Bill 1406 authorizes the state to pursue residents who create phony shell companies designed to circumvent the state’s tax code.
The new law effectively closes the "Montana Loophole," a legal strategy owners across the country use to avoid paying taxes on cars, RVs, and aircraft. The state is attractive because it lacks a statewide sales tax on vehicle purchases.
