A new law targets luxury-car buyers who dodge taxes by creating out-of-state shell companies. These buyers primarily use their vehicles in California but purchase and register them elsewhere.

The law, known as SB 1406, aims to crack down on this practice. It focuses on residents who exploit the system to avoid paying taxes in California.

Further details about the law and its implications are available from the source, which reports on the efforts to address this tax avoidance strategy.