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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.

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Be careful with high end cars and taxes
Shutterstock

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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