California officials have uncovered a tax evasion scheme where residents purchased over $20 million in luxury vehicles from Montana since 2018. The investigation revealed that 14 people arranged tax-free sales of high-end cars, including a $1.5 million Porsche 918 Spyder, by exploiting Montana's lack of sales tax.

California's Attorney General's Office found that wealthy Californians were buying expensive cars in Montana to avoid the state's sales tax, which can reach 10% in some areas. The scheme involved arranging vehicle purchases through Montana dealerships, where buyers would then register the cars in California despite never actually residing in the tax-free state.

State officials are now cracking down on this practice, which has cost California millions in lost tax revenue. The investigation highlights how some residents are using interstate commerce laws to circumvent state tax obligations, prompting calls for tighter regulations on vehicle registration and sales tax collection across state lines.