California closed the Montana license plate loophole

(thedrive.com)

60 points | by speckx 9 hours ago ago

128 comments

  • kart23 27 minutes ago

    pretty sure in a lot of these cases it’s already illegal, enforcing the law is another matter. someone actually has to pull over the montana plate owner, then the state has to sue them for tax evasion, build the case, etc. Thats just not gonna happen. ideally there would be a nationwide standard for registration and taxes.

    also the new hot thing in california is to have dealer plates on your million dollar car. you never register it, never pay taxes, but it’s still legal to drive. you just need to own a dealership, but on paper again that’s not hard if you’re rich

    • Melatonic 11 minutes ago

      I thought dealers had to have plates with numbers now ?

    • subhobroto 11 minutes ago

      > you just need to own a dealership, but on paper again that’s not hard if you’re rich

      You're technically correct, but a dealership is one of the most highly taxed entities in California. In any city or county, a dealership, dollar for dollar, pays one of the highest taxes than any business there.

      So this recommendation is similar to stabbing yourself in the stomach so that you weigh less on the scale - there are other details, most people don't care about, with those dealer plates on one's million dollar car that has to do more with insurance, liability and taxes than fees to the CA DMV.

      > someone actually has to pull over the montana plate owner, then the state has to sue them for tax evasion, build the case, etc. Thats just not gonna happen

      But that's because that's not the path the FTB follows!

      The reasonable path that has been taken is the FTB finds out that you, as a Californian, own plates in Montana and send you a bill for the registration plus fees and punitive damages so you reconsider pulling the stunt again. If you don't respond in 90 days, it's sent directly to your bank as a demand letter. If you have at least one bank that has a California domicile, that bank is going to pay out from your funds immediately.

  • fedpost 7 hours ago

    Can I just take this moment to mention that I think we need a better system for car registrations across the board? I don't like that there are all these edge cases with titles, insurance, inspections/smog, window tint, plate expiry, taxes etc whenever you move or even travel. It feels like we've just turned vehicle ownership into a profit opportunity for the police to harass everyone over completely inconsequential nonsense the second you cross any state line (emissions/insurance aren't nonsense but bear with me pedants). Similarly it creates a mountain of work every time you move.

    I wish you could just register under an LLC or trust or something wherever and have a generic plate that can go anywhere and force the states to agree on a set of standards that apply across the country.

    Alternatively allow people to keep their plates indefinitely like phone numbers. Yes, this creates arbitrage opportunities but maybe we should be bringing up the standards of the arbitrage states instead of having assholes threaten everyone with guns for random infractions.

    I'm kinda just throwing ideas out there but this current system is Kafkaesque.

    • hnav 30 minutes ago

      Even within California there are smog-exempt counties. This makes perfect sense, things like excess NOx simply don't matter if the population density is low enough which incidentally is also true of a lot of the rest of the country. CA is the strictest with smog-related, going as far as barring federal (non-CA) vehicles from being registered unless they're 7500+ miles on the odometer. Tint should be limited to 70% VLT nationally really, but that's another topic. Other than that some north-eastern states have safety inspections which makes total sense given the rust. By developed country standards we have it very easy.

    • cmckn 7 hours ago

      Moves to different states are just not that common for the average American, and I would prefer for states to retain the power to implement their own policies in this area. I would not want to see e.g. California unable to change emissions policy because Texas isn’t on board.

      Complexity is a cost of our federal system and I am okay paying it in most cases.

      • NDlurker an hour ago

        I moved between 4 states 5 times before I was 25. I currently live a mile from a state I drive into almost everyday where my tint is illegal.

        • bloppe an hour ago

          Congratulations. You're an edge case.

          In my experience there's enough slack in practice for these edge cases. At least in CA, it's very strange for a cop to cite a tourist because their car is not road legal in CA but is road legal in their home state. I've known many people who just get off with warnings, sometimes years after they've actually moved to CA (and just never bothered re-registering their car their, even though that's technically legally required). Ofc YMMV

          • sokoloff 34 minutes ago

            Edge cases, as you call them, are very common in New England. It’s common in small states to live in one and work or shop in another.

        • NewJazz an hour ago

          Then get your windows untainted.

          • NDlurker 18 minutes ago

            I'm not going to remove my legal tint to comply with rules for a state I don't live in. It's incredibly unlikely I'd get pulled over for it, but it is possible if a cop wanted a reason to pull me over.

            • NewJazz 10 minutes ago

              It is not a legal tint because you drive in a jurisdiction where it is not legal. Don't like that law? Don't drive there.

      • balderdash 7 hours ago

        I’m not sure what you mean by not that common. The ta millions of people a year- yes maybe it’s only ~1% of the population, buts it’s one percent every year, and I quarter you it’s no evenly distributed.

        https://www.census.gov/newsroom/press-releases/2026/2024-sta...

        • bloppe an hour ago

          Somewhat inconveniencing 1% of people per year seems like a reasonable price to pay for local legislative control.

          That said, I've moved across state lines before and didn't find it that inconvenient. I just had to re-register and do a smog check.

    • hammock 42 minutes ago

      I was with you in the first paragraph. As I was reading I was reminded of old Cold War-era Soviet Union.

      You lost me in the next paragraph where your solution was to centralize even more into a committee that has the power to bulldoze over more locally relevant needs and desires

    • gumby 5 hours ago

      Nobody seems to recognize how deranged it is that we drive around with easily identifiable numbers plastered on our vehicle. This has seemed weird and privacy-violating to me since I was a kid, yet even today when people complain about Flock cameras they don’t complain about what the cameras are looking for.

      What if gun owners had to walk around wearing a huge plate with their gun registration number when they wanted to carry a gun?

      And why do driver’s licenses have all sorts of extraneous info (all you need is a biometric, like a photo, expiration date, class of license, and any restrictions)? Just because I walked into a bar or bought a beer at the supermarket doesn’t mean they should be allowed to harvest my address, DOB etc.

      The whole edifice is absurd.

      • pixl97 2 hours ago

        Why, a license place is the cost for you moving around a multiple ton object capable of high speeds and causing death and huge financial losses.

        You have zero right to a car. It is a privilege, one that you should be able to lose a lot easier.

        • subhobroto an hour ago

          Setting aside how things are, I'm curious about this thought experiment:

          > You have zero right to a car. It is a privilege, one that you should be able to lose a lot easier.

          Do I have a right to feed myself and my family?

          If yes, is that right absolute or relative?

          If absolute, and my ability to feed requires me to commute in a car, is having a car a right or a privilege?

          • mandevil 42 minutes ago

            You do not have a right to drive a car in the United States. It is a privilege for which you must be licensed, which necessarily means you can lose your license and not be able to drive. There are medical conditions which absolutely prohibit you from driving. At least in the state where I did Drivers Ed, if you had certain kinds of seizures you could not drive again until you'd been seizure free for 18 months. It is your responsibility to arrange your life to match that.

            No matter what other thought experiment you create, you do not have a right to drive a car in the US, it can be revoked quite easily.

          • wat10000 34 minutes ago

            That last “if” is smuggling in a huge assumption.

      • greycol 4 hours ago

        It is worth considering that without being able to identify people then only unacceptable behaviour that rises to the level of needing and having an immediate response can actually be punished.

        It's the qualitative change than comes with the change in quantity and ease of monitoring (and accessibility of that info) that means being identifiable is so much worse now days.

      • shrx 5 hours ago

        > What if gun owners had to walk around wearing a huge plate with their gun registration number when they wanted to carry a gun?

        Actually a very sensible proposition.

        • subhobroto 43 minutes ago

          No. Not sensible at all.

          Do you wear a name tag in public with your SSN, or some unique identifying information on it? If not, why not?

          If I asked you to vote on this, would you vote in favor for it?

          Why not? People can strangle other people so it makes sense to know who is who at all times in the case that someone strangles someone else and then tries to run away.

          If this isn't making sense yet - This is as sensible as expecting software engineers to walk around with equipment that prominently display uniquely identifying information because computers can be used to hack and doxx people.

          The fact that license plates were/are necessary is to address shortcomings of technology.

          Most states in 2026 are slowly removing the need to display license plates at all because it never made sense but had to be done to address shortcomings that are no longer so in 2026.

    • fluidcruft 7 hours ago

      States could harmonize laws (if they wanted to).

      • fedpost 7 hours ago

        That's kinda what I'm getting at I think. We've created a patchwork hell full of arbitrage and petty harassment and everyone's just kind of fine with it

        • Spooky23 7 hours ago

          The problem is you’re optimizing for bureaucratic efficiency over the needs of the people. There’s even issues with that at the state level that would be way worse.

          So many Californians live in valleys that trap pollution. Strict emissions regulations have an immediate, tangible impact. South Carolina doesn’t have the same local issues and their standards vary. Likewise, tint stuff is mostly a police / safety issue, and is more of a problem in major metro areas. High tint is an issue in the Bronx. Not so much in rural Alabama.

          I’d argue that the worst part of the system we have now is that we have a weird hybrid as disenfranchisement has become a political priority. Integration between states is driven by compacts between states and Canadian provinces and mediated through private entities like AAMVA and NLETS. That has facilitated other sharing agreements with insurers and other entities that is a serious and significant privacy violation.

          We should be able to get a free passport card for identity, and make driving privilege licensure, vehicle registration, etc a purely state matter.

          • stickfigure 22 minutes ago

            There are many sketchy PoliceActivity videos from the highways of Alabama. Tint restrictions make sense everywhere.

          • jimbob45 12 minutes ago

            Car pollution isn’t likely to still be a problem in 5 years when we’re all using electric cars.

        • kotaKat 7 hours ago

          Similarly, the car purchasing process is a nightmare. Carvana faced that one the hard way trying to sell across the US and ended up forming their own lobbying band to push for digital and electronic titling and registration.

          https://www.estartcoalition.org/

          I suspect eSTART is... a start to what you're looking for.

    • axus 7 hours ago

      Someone could compile every vehicle regulation from all the states into one common list. It'd be more restrictive than any single state, but it would be consistent. And if someone doesn't like it, they can fall back to their local laws.

    • subhobroto an hour ago

      > and force the states to agree on a set of standards that apply across the country

      To rephrase, you're asking that the same license plate work across all of the European Union.

      To realize why this is unrealistic, one has to go back to history and understand the core concept of the United States of America. It's right there in the name itself. It was a compromise to unite and bring agreement across all these disparate states that were in their very own right entire countries (and most, even till date, most states in the US continue to be larger, geographically than most countries in the world), agree on some very basic terms so there could be trade across them, kind of like the European Union.

      > but this current system is Kafkaesque

      Of course, this license plate registration thing was optimized for tax and fee collection, and it does that job very well. All it takes is for someone to run for office and say they're going to overturn it all.

    • waterTanuki an hour ago

      This is the cost of living in a federated republic. Power is diffuse across the states so they all have different opinions on how to go about things like vehicle registrations and insurance. The only alternative is for states to relinquish the power over vehicle registrations/plates/insurance requirements to the federal government which could enforce a universal standard, but I'm sure given current events you would see why that would be a terrible idea.

      I think as programmers we naturally want a single, universal standard for everything, but there are genuine advantages to having the current system as well, even with all of its flaws.

    • imoverclocked 7 hours ago

      Except that states want their pound of flesh; California is definitely no exception.

      There are entities that are federal registrations (eg: an aircraft with an "N-number" -- that N-number is federal) that individual states still try really hard to tax the same way as cars/trucks. Individual counties even take a stab at this.

      It seems that the rules might be there for some benefit but mostly the rules help the state/county make income.

    • sandworm101 7 hours ago

      So a race to the bottom on licensing/taxation/safety/insurance/emissions? But only for those wealthy enough to have family trusts?

      No. Each state needs the power to set minimum standards as to who can drive what. I don't want to see millionaires be allowed to drive around without insurance in unsafe cars simply because their daddy purchased them a share in a Delaware family-held plates LLC.

      • fedpost 7 hours ago

        You can create trusts for a few bucks. It's not an inherently rich people thing

        • sandworm101 7 hours ago

          Ya, good luck trying to defend your 2$ out-of-state trust in local court when it is sued after not having proper insurance to cover the cars it "owns". But wait, you won't even be allowed into court as you need to be a lawyer to represent a corporate entity.

    • jeffbee 7 hours ago

      Window tint isn't nonsense, either. I think every stanced-out pickup with a tinted windshield should be apprehended and destroyed the instant it crosses my state's line.

      • NDlurker an hour ago

        States have so many variances on what kind of tint is legal and sometimes just absurd rules. For example, Minnesota has very little limitations on tinting SUVs but strict limits on cars. A Subaru Crosstrek is pretty much a lifted Impreza. The tint on my Impreza is illegal in Minnesota, but would be legal if it was a Crosstrek.

  • jhallenworld 7 hours ago

    I've seen car dealers in MA use Montana dealer plates. At the very least they are cheaper, avoids $220 / year excise tax and registration fees vs. $25 for Montana. I don't think it helps with any sales taxes- dealers don't have to pay when they buy cars, unlike customers. It would help if dealer uses the car personal reasons instead of just having it for resale.

    Hmm... maybe I should start a car dealer just to avoid taxes on my next car..

    The Montana plate for owners reminds of registering your boat in Wilmington Delaware to avoid state sales tax. You had to create an LLC to do this I think.

    • kart23 26 minutes ago

      this is actually happening in california now. a lot of people are using dealer plates on expensive cars they just drive around normally. no registration, no taxes.

    • colingauvin 2 hours ago

      I certainly don't pay $25 to register. Maybe it's different for businesses? But for me on a 2024 truck it's $300-$400/year in Montana.

      • DANmode an hour ago

        What’s the perma plate cost?

  • turlockmike 7 hours ago

    Eventually everything will be a use tax. It's the only fair tax and there will always be loopholes otherwise.

    • parineum an hour ago

      If we're going to have a use tax, I'd rather a private company own whatever I'm using.

    • Schiendelman 7 hours ago

      You'd think that, but they are deeply unpopular.

      • eli 7 hours ago

        If we're only doing tax policy that's popular, it's gonna be all corporate and high income household taxes.

        • jfengel 2 hours ago

          If we're only doing tax policy that's popular, it's gonna be all tax cuts and debts written in exponential notation.

        • Computer0 2 hours ago

          I think a more popular tax policy would be televised forced (under duress) blood withdrawals of the 1%

        • smallmancontrov 7 hours ago

          If we're only doing tax policy that's popular with wealthy donors, it's gonna be ~all earned income and sales tax.

          Oh wait, that's what it is.

    • downrightmike 6 hours ago

      Land use tax needs to start first

  • dboreham an hour ago

    Montana person here. I'm on the other side of this trade: trying to buy cars in California[1] that I'm going to register in Montana. My experience has been that it's very hard to exploit this "loophole". I know that because even not trying to exploit the loophole. I have to jump through hoops to prove to a dealer that I really live in Montana. And then the car has to be either put on a transporter, taken to the border (or all the way to Montana), or driven by an employee of the dealership to the border. Then we have to get paperwork notarized by someone at the border that the vehicle really left CA. You also have to pledge in writing that you wont bring the car back into CA except for maintenance. I've had dealers in LA just plain refuse to sell me a car because I lived in Montana. So it was not in recent years anything like as easy as "put a Montana plate on it" <waves hand>.

    The article calls the ownership entities "fake LLCs". They were in fact completely real kosher Montana LLCs. The issue at hand is that CA wants to disallow the case where the LLC is owned by someone who is a CA resident. That's not the same as "fake".

    Finally, anyone from California should experience the Montana DMV (called MDT here). It's like checking into the Four Seasons compared to the CA DMV! You can phone them and they'll answer within a few rings and help you out. You can go down to their office at the court house and perhaps have to wait in line for 5 minutes, but perhaps just walk straight up to the counter. They will help you figure out vanity plate letters, endlessly checking whether ideas you have are already registered. I almost make up excuses to go to the DMV, it's so nice there. Montana also has a system of sponsored plates. There are about 100 of them, which allows you to choose a plate of almost any color, which is nice if you want it to match the car color.

    [1] Why do that? Well there are 100X more cars for sale in CA, and the prices are lower.

    • DANmode an hour ago

      > the prices are lower.

      On what? Genuinely curious what class of vehicle you’re buying and selling. I’m assuming it’s…not Camrys.

  • subhobroto 31 minutes ago

    There seems to be a lot of varied and interesting perspectives and lengthy debates on this thread, but the core issue is California is in debt and needs all the money it can get.

    The California DMV is a fees collection arm and not customer friendly. For example, a lot of Californians don't even know that there is something called PNO, or "planned non-operation", a status possible for vehicles they don't plan to run or use on public streets, where they stop paying recurring registration fees that are now in the hundreds of dollars a year.

    Every year, I'm aware of at least a few people who do not have an operational car or have a second car in their garage that they are still paying registration fees for, or the state of California places a lien on their unused vehicle, just because that person is unaware that they can just stop paying registration fees on their car by filing a PNO in time.

    First you have to know this PNO status exists, and then you have to file it correctly within a short 90 day window. There are no exceptions, even if you prove you were in a coma or out of state or country. I'm not going to go into the details of how draconian the process of bringing a car out of PNO is. For example, if you have a car that has passed smog in October, you put a PNO in October and you bring it back out of PNO in November, they're going to make you smog it nonetheless - pretty expensive process that costs now atleast a hundred dollars all in, which runs counter to California's own policy of not requiring a smog within 90 days of the recent smog test.

    If the DMV was customer empathetic and friendly, they would have by default, placed any cars that have not been registered in time, on PNO. Later, the person who pays the registration then automatically gets their car moved from PNO to registered status.

    However, this is not how the DMV operates: They will continue to tax you and fine you and add interest on top of all the fees for a car you do not plan to operate.

    So all the debate about whether this is right or if there is another way of doing it etc is missing the entire point because none of that is the objective.

    The entire point is to collect taxes and fees to fund a ballooning, unchecked and ever-growing expense account.

    • mrpippy 15 minutes ago

      Every time you pay your registration in CA (either online or through the mail) they ask if you want to register PNO or not. Also, it’s not free (like $20) to register PNO, so doing it automatically would still result in an unpaid bill.

      • subhobroto 3 minutes ago

        > Every time you pay your registration in CA (either online or through the mail) they ask if you want to register PNO or not

        If we agree that owning a car for most people (I'm sure there are exceptions for collectors etc, that don't concern me) requires either paying registration or the PNO, why is not the PNO automatic choice until someone pays the registration?

        > so doing it automatically would still result in an unpaid bill

        I would imagine a $20 bill would be appreciated by most people over a $200 one.

        Last time I was at DMV in person, I was shocked to learn from the cashier there that the cheapest registration one can pay for a 4 wheel sedan in 2026 is about $200.

  • hparadiz 7 hours ago

    I don't get how it's constitutional for them to levy a tax on an officer of a company that does not live in the state just because one officer of the company does live in the state. Even weirder the law does not require the one officer that does live in California to have a company car. In other words they are trying to tax out of state cars with no proof those cars were ever in the state. This is gonna cause a mess in the courts.

    • jmilloy 4 hours ago

      They only tax the assets that are held in the state. I don't know where you're getting that they will tax out of state cars.

      > If anyone running the business is a California resident (by the updated definition outlined above), then the whole business is a California resident, and any assets (including Lamborghinis and Bugattis) held in the state are subject to California taxation.

    • floatrock an hour ago

      They're not levying a tax on an officer of the company, they're levying a tax on the company if the company brings assets into the state within 12 months of purchase (so the whole point is there is proof the cars are being used in the state). But since a company can't go to jail, the California officers operating the company are on the hook if the company happens to have weirdly empty balance sheets and can't collect what is owed. And this bill specifically only targets any-share owners of just "shell" companies, which tend to have those weirdly empty balance sheets. Normal companies fall under existing california laws.

      I mean, we can continue to pick apart the legal language, or we can acknowledge that if people invent elaborate loopholes to avoid paying taxes, the State will adapt and create elaborate corrections to collect those taxes. This is just a cat and mouse game of greed vs. fairness being played out in real-time.

    • downrightmike 6 hours ago

      Taxation without representation

  • blagie 8 hours ago

    > “The bill would hold any officer, manager, partner, beneficial owner, or member of a shell company personally liable for any unpaid taxes, and any interest and penalties on those taxes, the nonpayment of which may constitute a crime, due on the purchase of a vehicle, vessel, or aircraft.”

    Is dumb.

    You want comprehensive enforcement with reasonable penalities.

    You don't want draconian laws randomly enforced.

    • bluGill 8 hours ago

      I don't think it will hold up in federal courts. This seems to apply to cars that the company officer who lives and drives in Montana as well. If this only applies to cars used more than 50% in CA is would hold up. Of course truck drivers who mostly don't drive in CA but that is home may find an out with that plan.

      Details are important and very hard to get right.

      • mikeryan 7 hours ago

        The core of the law, ie who is expected to register their car in CA and what state sales taxes need to be paid has already been in place for years and likely already challenged. This is just a modifier to address a particular loophole.

        As long as nothing about this crosses state lines (ie they’re not trying to regulate out of state businesses or property) there’s not a lot to go on. Several states have taken similar steps to close this loophole. Famously the YouTuber whistlindiesel got arrested in Tennessee for this and the case is still pending

        https://www.thedrive.com/news/is-the-government-making-an-ex...

        • bluGill 7 hours ago

          Details matter and the article may have them wrong, but my reading is this accidentally covers out of state cars as well. I'm not going to look up the law to see who is right though.

          • mikeryan 6 hours ago

            The cars are registered in MT but they’re under CA jurisdiction if they are primarily driven here. That’s the literal loophole. CA is not trying to force people to pay CA registration and sales tax on cars kept and used primarily out of state.

            • bluGill 4 hours ago

              That is the intent of course. However it is really easy to write a law that missing important details and so despite the intent cover all cars regardless of where they are used.

      • jmilloy 7 hours ago

        > If anyone running the business is a California resident (by the updated definition outlined above), then the whole business is a California resident, and any assets (including Lamborghinis and Bugattis) held in the state are subject to California taxation.

        I'm relying on the paraphrasing in article rather than the text of the law itself, but this says that it only applies to assets held in the state.

      • hparadiz 7 hours ago

        This tries to apply a tax to people who have never set foot in California. I have no idea how this holds up.

        • ted_dunning an hour ago

          It actually doesn't do that.

          Did you even read what was written?

    • linksnapzz 8 hours ago

      What, the government of CA is lobbing hastily-crafted, poorly considered legislation in the general direction of a problem that they think they have?

      (surprised pikachu face)

    • grvdrm 8 hours ago

      You are speaking deeply to me about leaf blower bans in my town. They are useless.

      • jacobolus 7 hours ago

        Gas leaf blowers are a menace to society that should not be allowed in any urban or suburban area. (If you want to use one on your farm or whatever, go for it.)

        • grvdrm 5 hours ago

          Notice that I didn’t say “I love leaf blowers”

          The ban is useless because the only way to enforce it is to catch it in the act (in my town). Basically impossible. So it is a ban that could be enforced (other ways) but instead is just a suggestion - and not one that most people follow because there are almost no repercussions.

        • blagie 6 hours ago

          Gas leaf blowers shouldn't be banned. What's needed is banning of the outputs:

          - Pollution

          - Noise

          Regardless of the source. If someone comes up with a magic silent gas leaf blower which doesn't pollute, that's okay.

          • jacobolus 4 hours ago

            There are some unavoidable sources of noise, so I'm not sure a blanket noise restriction is going to work. If someone is doing home renovation and the contractor needs to run a saw for a while, it's just going to be loud. Sometimes someone needs to jackhammer up a slab of concrete, or chip up tree pruning debris. Etc.

            But gas leaf blowers are easily replaced by a much less neighbor-hostile alternative.

      • collabs 8 hours ago

        If it is a blanket leaf blower ban, that is indeed asinine. However, I will gladly support a ban on two stroke engines for leaf blowers the same way I support requiring drivers to wear seatbelts.

        • grvdrm 5 hours ago

          The electric machines are way less intrusive. Ok with them.

        • deathanatos 7 hours ago

          > If it is a blanket leaf blower ban, that is indeed asinine.

          Uh … okay, it isn't immediately obvious to me why that would be. My landlords insist on (literally) weekly leaf blowing, regardless of season, and so every Thursday the air outside the apartment is quite literally unbreathable, as it is slaked with dust and exhaust, and literally unbreathable inside if I were to open a window (i.e., living here, I have to remember to always close the windows prior to Thursday). Not to mention the sound.

          Banning the gas ones fixes a portion of the problem, I suppose.

          I don't think I'd care as much if the cadence was something reasonable, like monthly. One bad apple spoils the bunch.

    • trelane 8 hours ago

      > You want comprehensive enforcement with reasonable penalities.

      > You don't want draconian laws randomly enforced.

      This depends entirely on what the goal of the law is.

    • sandworm101 7 hours ago

      >>You want comprehensive enforcement with reasonable penalities. >>You don't want draconian laws randomly enforced.

      Paying tax on a vehicle driven in a state is not unreasonable. And holding the executives of a shell/numbered/privately-held/tax-dodging organization liable for taxes owed is not draconian.

  • bradlys 6 hours ago

    I think the tax hole loop is a bit annoying but I also find it annoying that CA won't allow you to register a shitload of cars in the state, period.

    It's due to the asinine carb laws. Even if you have a car that would pass smog, they won't let you register it. I don't see this doing anything when a ton of vehicles get a pass. For instance, all motorcycles don't fall under this rule and they are the biggest polluters out there.

    It's just dumb.

    All these complaints people have about cars - yet don't see any legislation out there that's bringing the clean energy public transit revolution. Just more rules without any relief.

    • paustint an hour ago

      California is over-regulated and over taxed, "the government knows best, give us all your money and we will take care of you and save the planet". Just leave people alone and let them have a good life and do what they want within reason without trying to suck the life out of every penny.

      • saagarjha an hour ago

        > the government knows best, give us all your money and we will take care of you and save the planet

        Yeah this is kind of explicitly what most people living there seem to want

      • JeffRosenberg an hour ago

        Yeah, that’s why the population of California is so tiny, people voting with their feet. /s

    • tzs 3 hours ago

      I can't find anything about a limit on the number of cars you can register in California.

      • BobaFloutist 3 hours ago

        I had the same misread at first, I think they mean "There are a ton of (models of) cars that you cannot register in California"

  • blaufast 7 hours ago

    Thank you California

    Our willingness as a society to tolerate the expense, danger, and health issues brought by extensive car use will be looked back on with bewilderment. You can start to see the insanity when a 'classic' car drives by. It's noisy, heavy, dangerous, and smelly. It's allowed to noticeably pollute any area it passes through. We've made progress, but that level of noise, danger, and pollution is how every car on your street used to be.

    Car culture has a unique flavor of regressive entitlement. Every bit of societal and legislative progress that has made cars cleaner and safer has been fought tooth and nail by this group.

    Our government created a vast, expensive, open to use resource in roads and infrastructure, offers minimal restrictions an licensing for its use, barely enforces existing safety laws, and the combustion crowd shows outrage at the loss of their illegal activities.

    I wish our culture was less tolerant of this behavior. It is a tiny percentage that costs the rest of us constantly. Sometimes its a motorcycle club, others it just rich people shucking the social contract. I'm looking forward to the last Harley getting recycled.

    • jollyllama 15 minutes ago

      > I'm looking forward to the last Harley getting recycled.

      Dream on. It'll never happen.

    • Lammy 2 hours ago

      Anything that enables humans to exercise their freedom of movement is objectively good.

      • otterley 44 minutes ago

        No it isn't. Choices we make must consider externalities, tragedy of the commons, etc. Otherwise we're not bearing the full cost of and responsibility for our decisions.

      • vineyardmike 2 hours ago

        I find walking with transit more freeing. You can just go anywhere, no dealing with parking nor worrying about a massive expensive vehicle. You don’t need to apply for a license and take classes before you can do it, and people of all ages can safely participate. No worrying about taking the same modality back either.

        When did we decide that isolation was freedom.

        • some_random an hour ago

          You're welcome to own nothing and be happy, you don't get to force that "freedom" on others.

        • sokoloff 28 minutes ago

          Do that if that’s what you like. No one is stopping you.

          In exchange, consider extending that same optionality to others whose preferences are different from your own.

        • Lammy an hour ago

          > I find walking with transit more freeing. You can just go anywhere

          Here was my summer vacation this year — good luck with that lmfao https://i.ibb.co/5XxDvbyK/Emi-2026-10-06-18-12-00.png

      • unrented7977 2 hours ago

        How many other people are you willing to kill for that freedom?

        • Lammy 21 minutes ago

          How many are you alleging me to have killed? Last time I checked, that was wrong no matter how you might do it. Do you struggle to avoid temptation when you have the means to kill and must choose not to?

    • King-Aaron 2 hours ago

      I disagree with basically everything you said.

    • linksnapzz 7 hours ago

      I am not overfond of Harley noise; and I understand that some people really object to the VOC-smell of poorly-tuned carburetors...but this is a bit much.

      There's artistic merit in historic industrial design & engineering, and keeping those things in an operational state; for which I am willing to tolerate the occasional puff of blue smoke.

    • cowlevel 7 hours ago

      Is California making itself less car dependent or is it just taxing cars while remaining car dependent?

    • soperj 7 hours ago

      Still is pretty pollutant. You just don't see the brake and wheel dust as much as the fumes coming out of the car dusting everything with lead like they used to.

    • hydrogen7800 7 hours ago

      >Car culture has a unique flavor of regressive entitlement. Every bit of societal and legislative progress that has made cars cleaner and safer has been fought tooth and nail by this group.

      I'm a newcomer to this hobby, and am amazed how this resentment has perpetuated since their muscle cars were neutered in the 70's by emissions regulations. The resentment has transferred to subsequent generations who were not alive then, who still complain about all the emissions and efficiency efforts that carmakers undertake. Too much unnecessary machismo hanging around.

      • linksnapzz 7 hours ago

        You might be young enough to not remember how much engine performance turned to suck after about '74, and stayed that way for 15 years. Those '70s changes were worthwhile, but the 90-10 rule absolutely applies here.

        • hydrogen7800 6 hours ago

          I am too young to have lived it, but I have read about the Malaise era. To me, it's just when American car manufacturers had to start competing globally, and couldn't, so kept making the same giant V8's, but with 160 hp.

          • linksnapzz 6 hours ago

            More wouldn't than couldn't.

            The management was mostly of the opinion that gas prices would come down eventually, so there was little interest initially in making anything more efficient. Also, since small, efficient, cheap cars had miniscule or negative margins, there was a belief that competing in that market was optional.

  • fhn 2 hours ago

    this is all about the money, nothing else. California will get more money out of citizens any way it can.

    • jwcacces 2 hours ago

      This isn't about the state getting more money out of you. This is about shutting down on the tax dodge. Pay your taxes. If you don't like your taxes, vote to have them changed, but don't complain that you can't cheat your way out of the taxes that everyone else is paying.

      • subhobroto an hour ago

        > Pay your taxes. If you don't like your taxes, vote to have them changed, but don't complain that you can't cheat your way out of the taxes that everyone else is paying

        Let's say there are two classes of software engineers: A and B.

        - A get paid $50k/year

        - B get paid double that.

        The reason why A gets paid lower is because they are commodity software engineers. Due to supply and demand, there is an oversupply of these commodity engineers which make them so cheap. They are very hardworking but so are B.

        B are very high quality, creative, high impact engineers. These are highly capable people and due to biology and how IQ is distributed, naturally their numbers are way limited than the class A. Due to their productivity, impact and supply, their market price is higher.

        Given the same inputs, B produces way more useful and valuable (to society) outputs than A. Their incomes reflect this.

        From a voting perspective, members of both A and B both have the same number of votes.

        Now questions:

        1. What are your thoughts if A passes laws and regulations where their class doesn't pay any taxes but B's pays 60%?

        2. given that software engineering is an extremely creative process, problem solving ability typically scales with IQ, and IQ follows a bell distribution, the literal volume of A is much higher than B, aka laws that put B at a disadvantage get passed incredibly faster than the other way around (due to sheer volume in a democratic process).

        Do these resonate with you? Are there any logical fallacies in these statements?

        If so, what are your thoughts about them? What should class B do?

        • otterley 42 minutes ago

          This isn't a logical fallacy quiz and shouldn't be presented as one.

          Besides, it would be illogical--and unlikely--for Class A to tax Class B that much. If they did, and the predictable consequences followed, Class A would likely adjust the tax rate keep the population of Class B at an equilibrium state.

          Let's stick to realistic what-if scenarios, shall we?

        • hnav 41 minutes ago

          That's a highly contrived scenario. In reality the rich guy who employs both A & B is using tax avoidance strategies (including registering their Ferrari 812 in Montana) to pay single digit tax on their actual net worth growth and debt taken out against it, while A & B pay 20-35% on their W2 income.

    • Johnny555 an hour ago

      Have you just now discover what a tax is? It's a means for residents to pay for the government of the state in which they live.

      If someone doesn't like California's taxation (or government), they are free to move out of the state, but they can't have it both ways - they don't get to live in California but register assets outside the state to avoid the taxation.

    • saagarjha an hour ago

      Which seems like a reasonable way to go about it? If you’re in California and taking advantage of the benefits the state offers, you should be contributing towards it?

    • jrmg 2 hours ago

      Yes, it is of course completely reasonable that California residents should be able to register their cars in Montana, where they don’t live. Why would the stat want to put a stop to things like that other than to squeeze their residents for more money?

    • plussed_reader 2 hours ago

      Some of the residents appreciate a higher quality of living; for those that don't there's always Tuolemne or Shasta counties....

    • phyzome 2 hours ago

      Uh, yes? Taxes are, in fact, about money. And tax evasion is about not paying your fair share.

      • 0xbadcafebee an hour ago

        They're probably aware of that, and probably hold a political viewpoint that taxes should be voluntary.

    • anigbrowl an hour ago

      Ah, the grifter's lament

  • SoftTalker 7 hours ago

    Next headline: More wealthy people leaving California.

    These shenanigans with vehicle taxes happen whenever a neighboring state has a significantly better deal. People register vehicles in friends or families names who live in that state, or form a legal entity there which can own the vehicles. Of course then the high-tax state writes more and more convoluted definitions of "residency" for the vehicle to make it subject to taxation, which are either hard to discover/enforce as a practical matter or someone finds a new loophole and the avoidance games continue.

    • kube-system 7 hours ago

      No wealthy person is going to save money by relocating from California to avoid a $30-40k tax bill on an exotic car. Wealthy people have a beach house in California because they like California.

      The people who relocate to avoid taxes are upper-middle class people who are overextended on their finances.

      • paustint an hour ago

        Disagree - wealthy people don't become wealthy by giving all their money to the government. Expensive cars generally retain a decent value, but the taxes paid evaporate.

        Many people don't relocate, but instead try to figure out a way to save a bunch of money on a large purchase - why pay more if it can be avoided?

        • hnav 36 minutes ago

          Because not paying is tax evasion. If you go abroad, purchase a $50k watch, get a VAT refund then fail to declare, US Customs will fine you and probably pull your trusted traveler status. Are those people going to leave the US?

      • SoftTalker 6 hours ago

        Well they go through the trouble to form an LLC in Montana to own the car, to (illegally) avoid that tax bill. So clearly the tax isn't something they are just happy to pay. The LLC probably owns the beach house too, for some other tax dodge.

        • CyberMacGyver 4 hours ago

          But you can’t buy a beach house in Montana. The point being they still prefer living in California while mooching off residents who paid for the roads they want to drive on.

    • Noaidi 7 hours ago

      > More wealthy people leaving California.

      Good! I do not understand why people think this is a bad thing. I would rather be surrounded by poor, kind people than these rich sociopaths.

      • recursive 7 hours ago

        Good news. There are a lot more poor people in CA than rich.

      • linksnapzz 7 hours ago

        ...and yet, the number of people willing to emigrate to live next to the "rich sociopaths" of sportscar-owning California is far greater than the # trying to emigrate to live amongst the poor, kind people of, say, Cuba.

        Funny, that.

    • testfrequency 7 hours ago

      HN crowd used to hate the rich.

      Now comments like this, defending losers with lambos, are seen as admirable.

      • randallsquared 6 hours ago

        What are you talking about? HN was a site for people aspiring to BE the rich, in the sense that it was operated by and revolves around a startup accelerator.

      • pessimizer 6 hours ago

        > HN crowd used to hate the rich.

        I don't know where you heard this, but it is not true. HN is filled with people with many opinions about the rich, and also many rich people, and has always been.

        Startup News, created by a founder of the venture capital incubator Y Combinator, did not ever uniformly hate the rich. It is sponsored by the extremely rich, and only exists because they wished it into existence and maintain it.

        • krapp 6 hours ago

          (raises hand) I hate the rich!