Got Montana Plates? Here’s Why States Are Cracking Down

For years, luxury vehicle owners have registered their cars through Montana LLCs to avoid sales taxes, emissions tests, and registration fees in their home states. But that workaround is now in the spotlight — and states are starting to push back.

Why Montana?

Montana’s no-sales-tax policy and straightforward registration process make it an attractive option for owners of exotic and collector cars. For around $1,000, specialized companies will form an LLC, register your car in Montana, and send you plates — all without you setting foot there.

That loophole has turned Montana into a registration hot spot. The state now has more vehicles per driver than almost anywhere else in the country — a clear sign that many of those cars actually live elsewhere.

Why Other States Are Pushing Back

From California to Utah, states are losing millions in tax revenue as residents register vehicles hundreds of miles away. Now, they’re cracking down.

• Utah has launched an enforcement program using data sharing and plate readers to identify out-of-state vehicles — aiming to recover up to $100 million in unpaid taxes and penalties.

• California has increased audits and dealer investigations, warning that registering in Montana while living elsewhere could result in steep fines or even criminal charges.

In short, what once seemed like a clever tax loophole is now a potential liability.

What This Means for Drivers

If your car spends most of its time outside Montana, authorities may consider your registration fraudulent — even if you set up the LLC legally. With enforcement rising, penalties and back taxes could cost far more than any short-term savings.

Before taking advice from a “friend who knows someone,” talk to a tax professional who understands both Montana’s laws and your home state’s requirements.

For Auto Concierge Clients

At Auto Concierge, we don’t just store vehicles — we help clients protect their investments. From storage and transport to compliance and peace of mind, our goal is to make luxury car ownership effortless and secure.

We’re closely following the growing scrutiny around Montana registrations so our clients can stay informed and avoid unnecessary risk.

Read the full Bloomberg Tax article here:
👉 Got Montana Plates? States Ramp Up the Scrutiny on Tax Dodgers