GoKawiilCalifornia enacts SB 1406, ending Montana LLC car-registration tax dodge
California's SB 1406, which took effect September 30, 2026, closes a loophole that let wealthy residents register vehicles to out-of-state shell companies—often Montana LLCs—to avoid paying California sales and use tax. The law expands the 'California-ness' test, previously applied only to corporations and LLCs, to also cover partnerships and limited partnerships used to shield vehicle ownership from taxation.