California Finally Closes the Montana Loophole

[RayRay27]

For those with Montana LLC's - For context Cali closed the loop for rich folks trying to skip out on paying taxes on high end exotics, but usually what happens in Cali ends up happing in Colorado.

California Finally Closes the Montana Loophole for Exotic Cars

A new law targets shell companies used to register Ferraris, Lamborghinis, and other high-dollar vehicles out of state to avoid California sales taxes.

www.yahoo.com

 

[DaveInDenver]

Flock. We stand resolute with you, profligate politicians.

 

[IoN6]

SB 1406 also enables the state to recover up to $20 million in lost revenue each year to pay for road repairs and other essential services.

 

[BritKLR]

Not surprising. But, for legitimate small Colorado companies incorporating and operating in low tax liability States (Wy, Montana, etc.) and following the tax code, this may not impact them as much as just the guy trying to not pay his taxes his Ferrari...

No different than any other company HQ'd there and operating throughout the US.

 

[DaveInDenver]

Not surprising. But, for legitimate small Colorado companies incorporating and operating in low tax liability States (Wy, Montana, etc.) and following the tax code, this may not impact them as much as just the guy trying to not pay his taxes his Ferrari...

No different than any other company HQ'd there and operating throughout the US.

If the dept of revenue gets to decide who is and isn't legitimate what's to stop them from deciding all businesses incorporated in Delaware but located in another State aren't also "cheating" on paying their fair share of state taxes, too?

 

[justcruisin]

That's really bad news. You just know that if California did it, it's only a matter of time before this "Me too" state does the same. They already did it with the dumb catalytic converters. Have you tried to order a federal cat lately? It has to be "California compliant" or else they won't ship it to Colorado. WTAF? Make that make sense.

 

[BritKLR]

If the dept of revenue gets to decide who is and isn't legitimate what's to stop them from deciding all businesses incorporated in Delaware but located in another State aren't also "cheating" on paying their fair share of state taxes, too?

I can't speak for (or make sense of) the Gold Dome crowd in this state. Anything is possible and we'll adjust from there since we don't have all our eggs in this States basket.

 

[DouglasVB]

RIP all of the kei trucks in my area driving with Montana plates. And all of the hyper exotics. And there are A LOT here on the Monterey Peninsula.

Regarding local LLCs, here in California I would owe $800 every year regardless of if my LLC actually made money or did anything. It's stopped me from forming an LLC like I had when I was in Oregon where it was $100 a year. I would like to have one to do some small side projects and whatnot but it's not worth it to me so I don't.

I will say that I will not mind at all if the hyper exotics are all taken off the road here. I HATE sitting in traffic jams consisting almost entirely of hyper exotics with Montana plates revving their engines and cyber trucks with a bunch of tacti-cool crap taped to the outside.

Also I guess this is states rights

 

[J1000]

From what I understand people were buying the cars and RVs in CA and then registering them in MT. That's tax evasion.

But if they buy the car or RV in MT then it's not tax evasion.

Countdown til MT has the highest rate of supercar dealerships.

 

[IoN6]

Taxation is theft. So there is that.

 

[RossM]

ALL taxation is theft. There seems to be a conditioning to many in These United States that paying taxes is somehow patriotic. Nothing could be further from the truth.

There is no way to vote a way out of this and there is no party that will do what is necessary to fix what needs fixed. Buckle up, the road ahead is going to be a really rough one.

 

[RayRay27]

ALL taxation is theft. There seems to be a conditioning to many in These United States that paying taxes is somehow patriotic. Nothing could be further from the truth.

There is no way to vote a way out of this and there is no party that will do what is necessary to fix what needs fixed. Buckle up, the road ahead is going to be a really rough one.

I like it rough. Unfortunately this will be wide spread at some point with closing these types of loop holes and in the end the ones who get it the worst are the unintended, common folk like ourselves. Ive have always felt if you can afford a million dollar hyper car you can afford the registration and tax that come along with it.

 

[Inukshuk]

If the dept of revenue gets to decide who is and isn't legitimate what's to stop them from deciding all businesses incorporated in Delaware but located in another State aren't also "cheating" on paying their fair share of state taxes, too?

Its already the law in all states I know of, you pay on what you do there.

Regarding local LLCs, here in California I would owe $800 every year regardless of if my LLC actually made money or did anything. It's stopped me from forming an LLC like I had when I was in Oregon where it was $100 a year. I would like to have one to do some small side projects and whatnot but it's not worth it to me so I don't.

Colorado LLCs are $25 / year and can have great privacy if you do a few things. It was $10 a year until recently. The 250% increase was robbery and a pure money grab!

Sales tax has always been a ripoff and, except on supercars, regressive.