{"id":252000,"date":"2026-04-04T19:59:09","date_gmt":"2026-04-04T19:59:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/252000\/"},"modified":"2026-04-04T19:59:09","modified_gmt":"2026-04-04T19:59:09","slug":"california-cracks-down-on-luxury-car-registration-loopholes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/252000\/","title":{"rendered":"California Cracks Down on Luxury Car Registration Loopholes"},"content":{"rendered":"<p>What can convince an otherwise law-abiding citizen to get creative (and potentially bending the law) with the way that they handle auto registration? When considering the motive in a case like this, it can useful to get a sense of what <a href=\"https:\/\/www.lendingtree.com\/insurance\/car-ownership-study\" rel=\"nofollow noopener\" target=\"_blank\">auto insurance rates and taxes<\/a> are like in a given state. In New York, for instance, there\u2019s been plenty of talk of <a href=\"https:\/\/www.cityandstateny.com\/policy\/2026\/04\/astroturf-war-new-york-over-car-insurance-reform\/412615\/\" rel=\"nofollow noopener\" target=\"_blank\">insurance reform<\/a>, with the goal of lowering bills, on both the local and state level. Whether it will have the desired effect remains unclear.<\/p>\n<p>On the other side of the country, California\u2019s state government has recently embarked on a change in policy of its own: figuring out whether the Californian owners of luxury cars are registering their cars in states with lower taxes. In a recent <a href=\"https:\/\/www.latimes.com\/california\/story\/2026-04-03\/rich-register-ferraris-porsches-in-montana-to-avoid-taxes-california-is-cracking-down\" rel=\"nofollow noopener\" target=\"_blank\">article<\/a> for the Los Angeles Times, Suhauna Hussain explored the amount of money that the state says that it is losing to ethically dubious registration practices.<\/p>\n<p>You may note that I used \u201cethically dubious\u201d above and not \u201cillegal.\u201d That\u2019s something that California lawmakers are looking to change; <a href=\"https:\/\/legiscan.com\/CA\/text\/SB1406\/id\/3402568\" rel=\"nofollow noopener\" target=\"_blank\">a bill<\/a> currently being considered by the state Senate would regulate Californians registering luxury vehicles in other states to avoid paying California state taxes on them.<\/p>\n<p>As the Los Angeles Times reports, this is often called the \u201cMontana loophole\u201d for a simple reason: Montana does not charge sales tax. Shannon Robinson of California\u2019s California Department of Tax and Fee Administration told the Times that the potential tax revenue could give the state government a significant boost. \u201c[U]ncovering even a handful of them makes a large, large impact on our revenue for our state that provides vital services for Californians,\u201d Robinson explained.<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.insidehook.com\/autos\/driving-lamborghinis-frozen-lake-esperienza-neve\" class=\"align-middle\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/Lambos-On-Ice-Hero1.jpg\" alt=\"White Knuckles and Ice-Cold Supercars: My Day Driving Lamborghinis on a Frozen Lake\" loading=\"lazy\"\/><br \/>\n\t\t\t\t\t<\/a><\/p>\n<p>California is not the only state looking askance at the Montana loophole. Last month, The Autopian <a href=\"https:\/\/www.theautopian.com\/states-are-finally-cracking-down-on-the-montana-plate-loophole-by-charging-14-people-with-1-8-million-in-tax-evasion\/\" rel=\"nofollow noopener\" target=\"_blank\">reported<\/a> a number of other state governments taking steps to make sure that the owners of rare luxury cars register those cars in the state where they will actually be driven. Utah recently took steps to that effect; the article also notes that Illinois, Iowa and Massachusetts have done the same.<\/p>\n<p>\t\t\tMeet your guide<\/p>\n<p>\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/a72ed6e53323ec29ff3feca8d0450ebbde8448ed556d8f6becb1c219b4086dff.jpeg\" alt=\"Tobias Carroll\"\/><\/p>\n<p>\t\t\t\tTobias Carroll<\/p>\n<p>Tobias Carroll lives and writes in New York City, and has been covering a wide variety of subjects \u2014 including (but not limited to) books, soccer and drinks \u2014 for many years. His writing has been published by the likes of the Los Angeles Times, Pitchfork, Literary Hub, Vulture, Punch, the New York Times and Men\u2019s Journal.&#13;<br \/>\n&#13;<br \/>\nAt InsideHook, he has\u2026<\/p>\n<p>\t\t\t\t<a class=\"bio-link\" href=\"https:\/\/www.insidehook.com\/author\/tobias-carroll\" rel=\"nofollow noopener\" target=\"_blank\">More from Tobias Carroll \u00bb<\/a><\/p>\n<p>\t\t\t\t\t\t\tMore Like This<\/p>\n<p>This article appeared in an InsideHook newsletter. <a href=\"https:\/\/www.insidehook.com\/newsletters?utm_source=subscribe\" rel=\"nofollow noopener\" target=\"_blank\">Sign up for free<\/a> to get more on travel, wellness, style, drinking, and culture.<\/p>\n","protected":false},"excerpt":{"rendered":"What can convince an otherwise law-abiding citizen to get creative (and potentially bending the law) with the way&hellip;\n","protected":false},"author":2,"featured_media":252001,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8],"class_list":{"0":"post-252000","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-california","8":"tag-california","9":"tag-california-headlines","10":"tag-california-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/252000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=252000"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/252000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/252001"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=252000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=252000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=252000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}