Dave RahardjaMar 7

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
Show threadDave RahardjaMar 7

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

Show threadPete GontierMar 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.
Show threadDave RahardjaMar 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!”

Show threadPete Gontier
@drahardja
Mar 7 at 11:45pmWeb