Cody Detwiler, the YouTube personality known as WhistlinDiesel, was arrested in Tennessee on November 12 for allegedly evading sales tax by titling a Ferrari F8 Tributo in Montana while living in Tennessee, according to The Drive. He was released on a $2 million bond.
Detwiler acknowledged registering the car in Montana to avoid what he called “possibly $30,000 in sales tax.” He said he received no prior notice before the arrest and framed the action as an attempt to make an example of him.
Why Montana LLCs Are Used
Montana has no sales tax, comparatively low registration fees, and no emissions testing, and it permits nonresidents to form LLCs and register vehicles to them. This has made the Montana LLC route a well-known strategy among high-end car owners seeking to reduce taxes and regulatory burdens.
Legal Landscape and Enforcement
The rules are straightforward: if a vehicle is primarily kept and used in a state like Tennessee, that state can require local titling and taxation. Historically, enforcement against Montana-plated supercars used elsewhere has been rare, but Detwiler’s arrest may signal a tougher stance in Tennessee and potentially beyond.
What Makes This Case Notable
- Arrests over Montana registrations are uncommon despite the tactic’s long-standing use.
- Detwiler’s public profile (10 million YouTube subscribers) amplifies attention and potential deterrence.
- The bond amount—$2 million—suggests authorities view the allegations as serious.
- The Ferrari was reportedly destroyed within months, but vehicle condition does not affect the underlying tax question.
Risks of Montana LLC Registrations
Using a Montana LLC can be illegal if the owner doesn’t live or conduct real business in Montana and the car is effectively based elsewhere. Barebones entities with no substantive activity—where the vehicle is the only asset—generally won’t withstand scrutiny.
By contrast, an LLC with meaningful operations—evidenced by bank records, contracts, agreements, and business insurance—may be viewed differently by authorities, though outcomes depend on the vehicle’s actual use and location.
State Responses and Policy Trends
States are moving to curb tax losses from out-of-state registrations. For example, Utah’s S.B. 52 targets residents who form external entities primarily to avoid taxes, looking past paperwork to where the car is truly based. Similar efforts and increased data-sharing point to growing scrutiny of Montana plates used in other states.
What to Watch Next
With limited official detail about why an arrest was pursued, it’s unclear whether this reflects a broader operation or a case-specific decision. Court filings could clarify how such cases are built and prosecuted. In the meantime, owners weighing Montana plates face a sharper trade-off: real tax savings versus elevated enforcement risk where a vehicle is actually garaged and used.
