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California closes the Montana license plate loophole

Original: California closed the Montana license plate loophole

California has moved to close a loophole that let residents register luxury cars and supercars in Montana to avoid the state's high vehicle registration and sales taxes. The change targets out-of-state registrations used primarily for tax avoidance, and drivers with Montana plates on cars kept in California are now exposed to back taxes and penalties.

Why now: Wealthy car owners have long used Montana registrations to dodge California's steep taxes, so the crackdown has major financial implications.

CaliforniaMontana

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