Sales/use tax exemption cancelled for Washington State

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chrismc

New member
Joined
Aug 6, 2015
Messages
4
I am looking to buy or lease a B-Class EV in the next few weeks, and was disappointed to find that the sales & use tax exemption for EVs registered in Washington State has been effectively removed (we still can't buy MB EV in-state, but can go across the border to Portland. Sales tax is still paid in-registered-state). The exemption expired Jul 1, 2015, but was renewed through Jul 1, 2019, but ONLY for vehicles with a total sales price or fair market value UNDER $35,000. This removes the majority of EVs from the exemption, and does not look at the effective (after fed tax rebate) price. Sadly, this makes the B-Class EV over $4k more expensive for me. :-(

From SB 5987 as passed, Sec 407 Alternative Fuel Sales and Use Tax Exemptions:
(4)(a) A sale, other than a lease, is not exempt from sales tax
as described under subsection (1) of this section if the selling
price of the vehicle plus trade-in property of like kind exceeds
thirty-five thousand dollars.
(b) For leased vehicles for which the lease agreement is signed
on or after the effective date of this section, lease payments are
not exempt from sales tax as described under subsection (1) of this
section if the fair market value of the vehicle being leased exceeds
thirty-five thousand dollars at the inception of the lease. For the
purposes of this subsection (4)(b), "fair market value" has the same
meaning as "value of the article used" in RCW 82.12.010.
 
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