California Intensifies Oversight of Out-of-State Vehicle Registrations
Photo by Jacob Moore
In a nondescript building in Kalispell, Montana, All Day $49 Registered Agents facilitate the registration of thousands of vehicles, boats, and aircraft for out-of-state owners. By forming limited liability corporations in Montana, these owners avoid sales taxes and registration fees in their home states, including California. The strategy is straightforward: establish an LLC, purchase a vehicle tax-free, register it with Montana plates, and operate it elsewhere.
Montana’s vehicle-to-driver ratio is the highest in the nation, with over 2.3 million registered vehicles for just 879,000 licensed drivers, according to Federal Highway Administration data. This disparity suggests many Montana-plated vehicles are used outside the state, resulting in significant revenue losses for other states.
California is now targeting these tax-avoidance schemes. The California Department of Motor Vehicles has identified 10,000 vehicles, valued at nearly $2 billion, sold to Montana LLCs since 2022. Using advanced surveillance and license plate readers, the DMV is actively identifying non-compliant vehicles. This crackdown aims to recover substantial back taxes and fees.
At AutoConcierge, we prioritize compliance and transparency for our clients’ vehicle storage needs. As states like California strengthen enforcement, we advise vehicle owners to ensure their registrations align with state regulations to avoid penalties. For expert guidance on compliant vehicle storage in Los Angeles, contact AutoConcierge today.