Mastodawn

Looks like the Montana License Plate party is coming to an end in #California. CA AG Rob Bonta is cracking down on people who register their cars under Montana LLCs to avoid paying sales taxes.

California’s use tax/sales tax on cars are one of the highest in the nation—it’s around 9% where I live. Montana, on the other hand, charges a one-time low fee to register your car, and you pay nothing more for the next five years.

It’s no wonder that a lot of wealthy people register their cars in Montana and drive them in California: you save $45k of taxes on a $500k car, after all. But of course, this robs California of tax revenue, and the benefits mostly accrue to the people with the most expensive cars.

Look, a lot of people (myself included) resent the extremely high tax rates on #cars, especially *used* cars, on which you have to pay the same tax rate *again* on resale, but those are the rules, and that’s the price you pay to enjoy living in this state.

https://www.yahoo.com/news/articles/montana-loophole-helped-alleged-tax-062839747.html

‘Montana loophole' helped alleged tax-evasion ring hide $20M in luxury car purchases, state says

One Marin County city has had nearly 100 car sales involving buyers claiming to use the vehicle in Montana, investigators said.

Yahoo News

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Dave Rahardja

People think Montana registration is a flex, but I have the opposite view: if you want to use a car to flex, then it’s a bigger flex to have California plates on your expensive car. Not only does it show that you can afford the car, but you don’t even give a shit about that extra 9% tax on your million-dollar toy. THAT’S THE FLEX. Montana plates on expensive cars makes you look like you’re stretching to buy the car.

Besides, there is a way to reduce your sales tax on your expensive toy: lease it. You only pay sales tax on the depreciated value. There really is no need to go to Montana to register new cars.

#California #cars

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Pete Gontier Mar 7

@drahardja I don’t think it’s a flex. The rich are just greedy at every scale. Even when it’s false economy. They’d rather save money than time. They are not sane.

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Dave Rahardja Mar 7

@integerpoet It’s a flex *among* the ultra rich because it’s a public display that they’ve cheated the system, which is something their peers approve of.

But it’s also a cynical running joke among us car enthusiasts. As one of my friends always says when he sees a car with Montana plates: “The best businesses are in Montana!”

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Pete Gontier Mar 7

@drahardja