The strategy make sense but can't they seize the vehicle after repeated violations?

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No. Just a simple non moving violation. Most likely never getting pulled over just for it. I am done with the petty taxes that have no real consequences besides that we perceive them as holding power.

It's actually very easy to get pulled over for unregistered tags in my home area (US). Happened to me twice.

Buy cars privately, and get a receipt from the seller for your "$1 car payment". Then pay the state a few worthless pennies of tax as a middle finger.