Mar. 31, 2026
Be careful with high end cars and taxes
California's aggressive tax regime is now targeting luxury car owners and dealers using out-of-state schemes like the Montana loophole, turning what once seemed like routine tax avoidance into a growing wave of audits, penalties and even criminal prosecutions.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Cars and taxes may sound like an unusual pairing, but as anyone who has bought a new car in recent years may know, the taxes can add up. Car prices in the old days often seemed to be phrased as $____, "plus tax and license" or "$___ out the door." Some dealers may offer a special promotion where they pay the sales tax. But the state gets the tax money either way, from you or the dealer. Taxes s...
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