Michael J. Bologna (Bloomberg Law): More States Cracking Down on Tax Losses From Montana LLCs

At least four states are developing tougher enforcement strategies against the “Montana loophole,” which encourages drivers to register expensive assets in other states to skirt their in-state sales tax and vehicle registration obligations.

Lawmakers in Indiana and Missouri are advancing legislation cracking down on residents abusing a tax sheltering strategy by which motorists set up Montana limited liability companies to purchase cars, boats, recreational vehicles, and aircraft. Montana has no statewide sales tax and very low vehicle registration and renewal fees, causing thousands of non-Montana residents to plate their vehicles in the Big Sky state each year.

Meanwhile, Georgia and Utah are implementing enforcement strategies created under legislation passed last year.

An analysis by Bloomberg Tax last year revealed there are likely more than 600,000 vehicles registered in Montana but operated in other states, resulting in billions of dollars in lost sales taxes and annual vehicle registration fees. The strategy is particularly attractive to drivers of high-end brands including Aston Martin, Ferrari, and Lamborghini, but aggressive online advertising in recent years has popularized the scheme with drivers of mid-range labels like Ford, General Motors and Toyota.

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Zac Palmer (Road & Track): YouTuber WhistlinDiesel, A.K.A. Cody Detwiler, Says He Has Been Arrested Again

The YouTube personality known as “WhistlinDiesel,” whose real name is Cody Detwiler and who has been facing charges related to tax evasion surrounding a Ferrari, has been arrested for a second time, according to a Sunday post on his social media.

Detwiler was originally arrested for alleged tax evasion, relating to his 2023 purchase of a Ferrari F8 Tributo that later burned to the ground.