California Is Finally Cracking Down On Montana's Supercar Tax Loophole

California State Senator Jerry McNerney, who proposed the bill in March and is chair of the state’s Senate Revenue and Taxation Committee, said:

"For years, wealthy tax evaders have avoided paying California sales taxes by setting up phony shell companies to buy Ferraris, Lamborghinis, and other luxury vehicles in Montana and then bringing the vehicles back to our state. Closing the Montana Loophole will help restore some fairness to our sales tax system by ensuring that everyone pays what they owe. 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."

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