Story perspectives

California DOJ Uncovers $2M Supercar Tax Evasion Scheme

3/9/2026

Summary

Story summary

The California Department of Justice filed a 57-count complaint against 14 individuals over a "Montana Loophole" scheme evading about $2 million in California sales tax on $20 million of supercars.
The scheme relied on falsely registering vehicles in Montana, which has no sales tax, to evade California taxes.
Text messages show defendants knew the activity was illegal.
Investigations identified hundreds of dealerships involved in over 2,500 suspicious sales.

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Story summary

The California Department of Justice filed a 57-count complaint against 14 individuals over a "Montana Loophole" scheme evading about $2 million in California sales tax on $20 million of supercars.
The scheme relied on falsely registering vehicles in Montana, which has no sales tax, to evade California taxes.
Text messages show defendants knew the activity was illegal.
Investigations identified hundreds of dealerships involved in over 2,500 suspicious sales.