California Cracks Down on Luxury Cars Registered in Montana

Authorities charge 14 individuals for $1.8 million in unpaid taxes on $20 million in luxury car sales

Mar. 12, 2026 at 7:33pm

Got story updates? Submit your updates here. ›

California authorities have charged 14 individuals for failing to report about $20 million in luxury car sales, leading to roughly $1.8 million in unpaid taxes. The issue centers around a legal loophole involving vehicle registrations in Montana, where owners create Montana-based LLCs to register their expensive vehicles to avoid sales tax, even though the cars never actually come to the state.

Why it matters

This case highlights how some individuals have exploited a legal loophole in Montana's vehicle registration laws to avoid paying taxes on high-end luxury vehicles. While Montana itself has not done anything illegal, the state's lax registration requirements have enabled this tax avoidance, depriving California and other states of much-needed tax revenue for public services.

The details

Authorities say the vehicles involved in the case include a $1.8 million McLaren Elva, a $1.5 million Porsche 918 Spyder, and a $1.26 million Ferrari F12tdf. Prosecutors allege that many of these vehicles were never actually shipped to Montana and were instead kept and driven in California the entire time.

  • On March 12, 2026, California authorities charged 14 individuals for the $20 million luxury car tax evasion scheme.

The players

California Authorities

Law enforcement officials in California who investigated and charged the individuals involved in the luxury car tax evasion scheme.

Montana

The state of Montana, which does not charge sales tax and has lax vehicle registration requirements that have enabled this tax avoidance scheme.

Got photos? Submit your photos here. ›

What’s next

Authorities in California and other states are likely to continue investigating similar cases of luxury vehicles being registered in Montana to avoid taxes, which could lead to more charges and efforts to close this legal loophole.

The takeaway

This case highlights how some wealthy individuals have exploited legal loopholes to avoid paying their fair share of taxes, depriving states and local communities of much-needed revenue. It raises questions about the need for stricter regulations and enforcement around vehicle registrations to prevent this type of tax avoidance in the future.