Washington State Alternative fuel vehicle sales tax exemption ENDS May 31

The Department of Revenue has notified the Washington State Auto Dealers Association that the alternative fuel vehicle sales tax exemption will end on May 31. To receive this tax exemption, your vehicle must be delivered on or before May 31, 2018.

The list of qualifying vehicles is available athttp://www.dol.wa.gov/vehicleregistration/altfuelexemptions.html.

The exemption

  • Only applies to new vehicles.
  • Only applies to the first $32,000 of the selling price or total lease payments if the customer leased the vehicle prior to the exemption’s expiration.
  • Expires on the last day of the calendar month after the Department of Licensing determines that 7,500 vehicles have qualified for the exemption.

To qualify, a vehicle must:

  1. Have a base model MSRP under $42,500 and be on the list linked above; and
  2. Be a passenger car, light duty truck or medium duty passenger vehicles that:
  • Is exclusively powered by a clean alternative fuel; OR
  • Uses at least one method of propulsion that is capable of being re-energized by an external source of electricity and is capable of traveling at least thirty miles using only battery power.

If you are receiving your vehicle after May 31, 2018, you will be required to pay all applicable sales taxes.

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