Many of the cars driven by Hispanics here in Iowa are tagged in Nebraska or Minnesota. There is something about certain counties there that make it easier to register or is an easy source of income for those counties.
I can remember when working construction, the cops would stop us and if we lived there more than a year, strongly encourage us to get local tags.
I notice a lot of Vermont tags here in NY that are here year round .
Years ago, here in Virginia I would see a lot of hispanics driving cars with North Carolina tags.
I think the reason was, at the time, North Carolina made it very easy for “undocumented” people to get a license and register a car.