Show Notes
Ah, Montana. Big Sky Country, the Last Best Place, and... Land of Tax Evasion?
This week, we're diving into the controversy around the Montana license plate loophole. A quirk of Montana law allows non-residents to buy and register cars there without ever setting foot in the state, and it's been heavily used by wealthy people around the country to avoid paying their own state's sales taxes and registration fees on expensive cars—saving tens of thousands of dollars in the process.
As a result, Montana has twice as many registered cars as actual people living in the state. And those other states are getting sick of losing millions of dollars in revenue to Montana. This month, California charged 14 people with tax evasion, money laundering, and conspiracy over using the loophole, pushing an open secret into the national spotlight, with the promise of more enforcement to come.
It's turning into a real mess. The Drive's editor-in-chief Kyle Cheromcha and executive editor Andrew Collins are breaking down how exactly the Montana trick works, what happened in California, and why this loophole is so hard to close for the rest of the country.
Thanks to the National Corvette Museum for sponsoring today's episode! Enter here (https://bit.ly/4uBefxU) for your chance to win a '65 Corvette. Entries close April 26, 2026 at 2:00 PM CT. This is your shot – don’t let it pass.
Link to the California case charging document: https://oag.ca.gov/system/files/attachments/press-docs/Complaint_Redacted_1.pdf
Stories mentioned in today's episode:
California Is Done With Rich Guys Registering Their Exotic Cars in Montana
YouTuber WhistlinDiesel Arrested for Allegedly Evading Sales Tax on Ferrari F8 Tributo
Why the Mercedes-Benz G-Wagon is a Secret Tax Write-Off
Learn more about your ad choices. Visit megaphone.fm/adchoices
More from The Drivecast
General Motors just laid out its future and it's wrapped around bets on AI, new EV battery chemistry, new EVs, and autonomous vehicles. But the automaker's in the midst of launching new clean-sheet V8s, what gives?
Arguably the Corvette is General Motors' most iconic and important vehicle even if it's not a sales leader. As the possible finale of the C8 Corvette lineup arrives in the form of the Grand Sport a new leader is taking over the team and all of GM Performance. It's a critical moment, and Tony Roma has big shoes to fill.
Cars are more complicated, connected, and software driven than ever. The tuning industry is growing, but awash in shady characters promising big power gains if you yank out your car's brain and send it to them to modify. AutoTuner aims to show you can run a legitimate business in this space, but this is at odds with what automakers want.
America's EV charging situation is a mess. So much so that eight automakers banded together to create a joint venture, dubbed Ionna, and try to fix the situation. It's an unprecedented move on multiple levels that shows the gravity of the situation, how seriously automakers take the future of electric vehicles, and an entirely new business venture that diversifies these companies beyond just building and selling vehicles: now they are selling the fuel too.
A new law in California relaxing emissions tests for classic cars is being hailed as a “landmark” victory for the car community and common sense. But it’s not what it seems.