Cars being impounded because of out of state plates | FerrariChat

Cars being impounded because of out of state plates

Discussion in 'California (Southern)' started by 1monza, Sep 7, 2019.

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  1. 1monza

    1monza Formula Junior
    Rossa Subscribed

    Jan 11, 2005
    273
    Manhattan Beach, CA
    Full Name:
    Norbert Hofer
    During the Monterey weekend this year. A friend of mine, a resident from Oregon driving a Porsche with Oregon plates was pulled over by the CHP. They told him they were pulling over cars with out of state plates. Supposedly several Lamborghinis' and McLarens were impounded being accused of CA state tax evasion. They were accused of registering cars out of state to avoid paying the CA registration fees and taxes. Anybody else hear this and have more info?
     
  2. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    3,173
    Beverly Hills, CA
    Full Name:
    Jay
    Sounds about right! Honestly, there is nothing this state won't do. Get dealer plates and call it a day! While it's still legal
     
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  3. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    At a cars and coffee on the Labor Day weekend I saw a guy with a 330 cab with Montana plates. I did not detect any road grime on his car given his very recent grueling drive from Montana! It was all shiny and pretty.

    Everybody knows the Montana sales tax/registration fee scam. I am sure California cops know it too. So I would think a rare car with Montana plates would be like catnip to cats for them.

    Also, there is the insurance issue. Is the owner insuring the car as located in Montana? If he is and has an accident, you know that the insurance company will be looking for an out, especially on a multi million dollar claim if the car is a total loss. If he is telling the insurance company the truth about the location, that is exhibit A in his fight with the great State of California when they seize the car.

    I don't think I would be making such a gamble with a multi million dollar car.
     
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  4. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    3,173
    Beverly Hills, CA
    Full Name:
    Jay
    Out of state car is ok with: out of state driver's license, address, insurance, plates and hopefully a state not too far away as you clearly commute!
     
  5. EastMemphis

    EastMemphis Formula 3
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    May 25, 2019
    1,717
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    John
    Insurance companies, at least USAA, don't care where the car is registered. The car is insured and they know all the details already.

    I've used Montana registration for things before, things that aren't obvious and overt and never had an issue. For my 360, I'm paying the sales tax and registering it in Tennessee. No sense sticking it in their eye.
     
  6. SoCal1

    SoCal1 F1 Veteran
    Owner

    Jun 14, 2011
    8,562
    SoCal LA/OC/New Mexico
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    Tim Dee
    Call it what you want, if it's registered legit and you have residence or a business in that state your good

    I have cars registered on both coasts, sometimes the cars are on reversed coasts.

    Never seen a law out of state plates are illegal except maybe down south for Calli plates LOL
     
  7. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    I dont disagree as long as you have a “real” residence or business in the state of registration. The problem arises when someone creates a “sham” residence or business for the purpose of justifying the state of registration. This is the typical structure of the Montana scheme where somebody creates an LLC in Montana for the sole purpose of owning and registering the car in Montana and has no other connection with the state. Here is an article that discusses that. The same logic applies to registration in other states of convenience as well.

    https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059
     
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  8. Flyingbrick242

    Flyingbrick242 Formula Junior
    Silver Subscribed

    Feb 26, 2017
    603
    Northern AZ.
    Its no wonder people are leaving this state in droves.!
    If these vehicles that have been impounded were minding their own business this is nothing short of harassment.!
    Cant wait to move out!
     
  9. TUTTSF

    TUTTSF Karting

    Sep 21, 2018
    162
    So. Cal
    I went to car week in Montery in my 458 with Montana plates and had several CHP behind me as we were in a rally from LA to car week and no issues.

    Now if I got pulled for speeding maybe they would question me.
     
  10. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    I suspect you got lucky because the CHP is generally well aware of the out of state plate registration scam and Montana is the poster child for that. If you don't think the CHP cares, here is the CHP web site to report cheaters.

    https://www.chp.ca.gov/notify-chp/cheaters-out-of-state-(out-of-state-registration-violators)

    Note the lead in statement is: “Did you know that the State of California loses millions of dollars a year in revenue from California residents who unlawfully register their vehicles in other states or countries?”
     
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  11. cls

    cls Formula 3

    Jun 12, 2007
    1,663
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    Chris
    FWIW, CA is not unique. Plenty of states do this.
     
  12. miketuason

    miketuason F1 World Champ
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    Feb 24, 2006
    15,517
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    Legally out of state vehicle and even out of the country vehicles can be driven in CA for 30 days, after that you have to show proof of residency or business.
     
  13. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    3,173
    Beverly Hills, CA
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    Jay
    “Did you know that the State of California loses millions of dollars a year in revenue from California residents who unlawfully register their vehicles in other states or countries?”

    But how many millions do they make by taxing the used cars to death and raping everybody on gas, tickets, registration, tolls, tows, etc. Yeah, a 250 GTO sells for $70million of course they want their $7,000,000 in sales tax. Of course at that point you probably wouldn't worry about the $
     
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  14. dustman

    dustman F1 Veteran
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    Jun 12, 2007
    8,930
    Sfo is still safe and easy to navigate via car or on foot. Same as always.
     
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  15. 1monza

    1monza Formula Junior
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    Jan 11, 2005
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    Manhattan Beach, CA
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    Norbert Hofer
    In SF, you just need to watch where you step.
     
  16. Rifledriver

    Rifledriver Three Time F1 World Champ

    Apr 29, 2004
    33,736
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    Brian Crall
    And in fact CHP has been doing it for quite a few years at the behest of Sacramento.
     
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  17. junc

    junc Formula Junior
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    Aug 2, 2007
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    #17 junc, Aug 2, 2021
    Last edited: Aug 2, 2021
    Resurrecting an old thread here but thought I should pass it on. My car storage guy just told me that another client of his who has a GT3 Touring with Montana plates has a problem.

    He went to Crystal Cove mall in Newport coast to get some coffee on Sunday and when he came out several officers were there. They identified themselves as dmv enforcement officers (didn’t realize there was such a thing) and requested his information. He now has to appear in front of a judge. These officers were going through the parking lot of the mall checking license plates of exotics . They said they were part of some task force.


    Sent from my iPhone using FerrariChat
     
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  18. ag512bbi

    ag512bbi F1 Veteran
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    Nov 8, 2003
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    Jun,
    Thank you for the heads up. I bet it Sucks for many collectors.
     
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  19. HMS

    HMS Formula 3

    Dec 12, 2003
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    Zack Sursio
    Man 2019 thread..lol
     
  20. tritone

    tritone F1 Veteran
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    Dec 8, 2003
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    But 2021 problem!
     
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  21. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
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    Ron H
    #21 RonH, Aug 3, 2021
    Last edited: Aug 3, 2021
    Only for tax cheats! Chrystal Cove is my home shopping center. I take my cars there every day. There are usually some great cars there as eye candy (even more before they closed down the Saturday cars and coffee). Here are my Ferrari’s plates (sorry out of town so I don't have a picture with current tags, but they are current). The tax man has no interest in my car as all taxes were and are paid. :)

    Image Unavailable, Please Login

    But any “collector” who wants to attend and show off his vintage car with Montana plates is welcome to do so. Unfortunately wallet size has never been a good measure of intelligence.
     
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  22. bobzdar

    bobzdar F1 Veteran

    Sep 22, 2008
    6,367
    Richmond
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    Pete
    I don't get it, want to live in CA, then obey the laws of CA. Otherwise move. Maybe to Montana?

    Whenever I see the Montana tax scam it immediately raises the question of what else are they scamming. If you're willing to break the law and cheat the govt for a few grand in taxes in an obvious way to drive a flashy car, you're probably scamming a whole lot more behind the scenes...
     
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  23. ExcelsiorZ

    ExcelsiorZ Formula 3
    BANNED

    Nov 7, 2003
    1,267
    Beverly Hills
    Maybe California could lower our ridiculous tax rates on pretty much everything (state income tax, 10 percent sales tax, property taxes, crazy renewal and registration DMV Fees, gasoline tax [paying nearly $5 for a gallon of premium) if they didn't have "several officers" roaming a parking lot early Sunday morning to harass people gathering for Sunday morning cars and coffee. So happy to see my tax dollars so usefully put to work :(
     
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  24. ExcelsiorZ

    ExcelsiorZ Formula 3
    BANNED

    Nov 7, 2003
    1,267
    Beverly Hills
    That's the point: It's not "just a few grand." We're talking tens of thousands of dollars or more.....and its every year. If you buy a 288GTO for say $2.3 million, a car whose original price was $83,000, up which sales tax was paid when it was originally purchased, in California you'll be paying ~$230,000 in sales plus additional fees! Then every year thereafter you'll be hit with a very substantial registration renewal fee of ~$15,000.

    Scale this down and it is still a real issue. You buy a Bentley, Mercedes or Aston Martin SUV for $200k you are paying over $20,000 in DMV fees and then over $1300 in DMV fees every year.

    The solution is for California to lower its taxes and more wisely spend its money. California has a $76 billion dollar budget SURPLUS! This fact, in and of itself, shows the excessive taxation in California and last year was the first time more people left California than moved into California.
     
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  25. Red 27

    Red 27 Formula 3
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    Feb 2, 2008
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    ExcelsiorZ, Get on the recall ballot and you have my vote!!!!
     
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