Gavin Newsom Cracks Down On Out Of State Registrations, Closes Montana Loophole

California is cracking down on a tax strategy that allowed some luxury-car owners to save tens of thousands of dollars by registering their vehicles through shell companies in Montana.

 

A $600,000 Lamborghini owner bragged about saving $70,000 through the arrangement, but California has now moved to shut down the strategy as the state estimates it could recover $20 million a year.

 

The boast appeared in a criminal complaint filed by the California Department of Justice, with the buyer celebrating five years of Montana registration for just $3,000, according to The Los Angeles Times.

Gavin Newsom closes 'Montana-loophole' as damning texts reveal what luxe car buyers saved on taxes https://t.co/iX7Xx5aLUj https://t.co/Djs5bxSSO6

— California Post (@californiapost) October 7, 2026