California's Attorney General has unveiled a case targeting individuals who used Montana LLCs to avoid paying sales tax on luxury vehicles, resulting in an estimated $10 million annual loss for California. The operation, part of a task force called True (Tax Recovery in the Underground Economy), began investigating this practice since 2023. The scheme involved wealthy buyers purchasing expensive cars like Porsche 918 Spiders and Ferrari F12tdfs through Montana-registered LLCs to dodge sales taxes. Buyers falsified documents, such as bills of lading, claiming the vehicles had been in Montana for a required period before being brought into California. This case highlights the ongoing battle between states and individuals exploiting loopholes to avoid taxation, with potential implications for interstate data sharing programs aimed at better enforcement.
Read the full article at The Drive
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