The Montana LLC Loophole: How States Are Fighting Back Against Out-of-State Title Schemes
Download MP3Episode Description
States are cracking down hard on out-of-state vehicle registration schemes, and the consequences are serious. In this episode, we break down how one Connecticut city caught 5,000 violators in just one month and what this means for anyone using the Montana LLC loophole or other out-of-state registration tactics.
Key Topics Covered:
- The Montana LLC Loophole Explained - Why people are using Montana LLCs to register vehicles and avoid state taxes and fees
- Vermont vs. Montana - How the popular registration schemes have shifted from Vermont to Montana as states catch on
- Bridgeport Connecticut Crackdown - Real case study of 5,000 vehicles caught in one month with fines, penalties, and seizures
- Automated License Plate Reader (ALPR) Technology - How cities are using cameras and AI to track repeat offenders
- Cameras mounted on cars, stop signs, street poles, and parking lots
- Computer systems flagging out-of-state plates appearing repeatedly in same locations
- Distinguishing between visitors and residents evading registration
- Investigation Process - How authorities identify violators
- Private investigative agencies hired by cities
- Pattern recognition for daily commuters vs. visitors
- Cross-referencing plate owners with local connections
- Connecticut's 90-Day Rule - Legal requirements for new residents and vehicle purchases
- Sales and use tax obligations
- Registration deadlines for movers and car buyers
- Apportionment Plates - How commercial trucking handles multi-state operations legally
- Penalties and Consequences
- Fines and back taxes
- Interest charges
- Vehicle seizures
- Additional penalties for evasion attempts
- Sales vs. Use Tax - Why registering in your state of residence is required regardless of where you purchased
Bottom Line:
States are getting smarter about catching out-of-state registration schemes. The technology exists to track you, and the penalties are getting more severe. Make sure you understand your legal obligations before attempting any registration workarounds.
States are getting smarter about catching out-of-state registration schemes. The technology exists to track you, and the penalties are getting more severe. Make sure you understand your legal obligations before attempting any registration workarounds.
