Inside the shady world of the Montana license plate loophole

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