A Car Dealer Faked Titles To Dodge Sales Tax For Years. Getting Caught Cost Less Than One Car.
Yahoo News
Last updated: August 31, 2026
A car dealer exploited a legal loophole, the "Montana LLC" trick, to evade sales tax on high-value vehicle sales. This practice involved registering expensive cars to shell companies in Montana, which has no sales tax, to avoid paying taxes in the buyer's home state. The scheme was ultimately discovered, but the penalties for the dealer were less than the cost of a single luxury vehicle.
- The "Montana LLC" method allowed collectors to avoid sales tax by titling vehicles with companies registered in Montana, a state with no sales tax. This practice was common for expensive, exotic cars, enabling owners to save significant amounts on taxes. The dealer in question utilized this strategy for an extended period, amassing substantial savings by bypassing sales tax obligations in other states.
- When the scheme was uncovered, the legal ramifications for the dealer were surprisingly minor. The fines and penalties levied were less than the purchase price of one of the luxury vehicles he had transacted. This outcome highlights a potential disparity between the illegal gains from tax evasion and the subsequent legal consequences. The article suggests that for some collectors, this tax avoidance strategy was an "open secret," indicating a known practice within certain circles.
