California Just Kneecapped the Montana LLC Trick. Dodge the Tax Now and the Bill Follows You Home.

Since September 30, anyone who owns or runs an out-of-state shell company that bought a car for use in California can be billed personally for the unpaid use tax, plus interest and penalties. Governor Gavin Newsom signed Senate Bill 1406 by Sen. Jerry McNerney (D-Pleasanton) that day, and because the Legislature passed it as a tax levy, it took effect immediately as Chapter 1036, Statutes of 2026.

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