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09/15/2008 08:26 AM
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Sales Tax Exemption Goes Into Effect for Hybrids in Washington
SustainableBusiness.com News
Residents of the State of Washington who purchase alternative fuel
vehicles or hybrids won't have to pay sales tax beginning Jan. 1, 2009.
The exemption was enacted by the state legislature in 2005 with
a delayed effective date. The exemption is effective through Dec. 31,
2010. It includes the 0.3% motor vehicle sales tax and could save as
much as 9.3% (Seattle) depending on depending on the level of regional
sales tax
Qualifying vehicles include new passenger cars, light duty
trucks, and medium duty passenger vehicles that are powered by clean
alternative fuels such as natural gas, propane, hydrogen or
electricity; or use hybrid technology and have an estimated EPA highway
mileage rating of at least 40 miles per gallon.
The miles per gallon clause will cut out certain oversized sport utility vehicle hybrids.
The exemptions also generally apply to leases and out-of-state purchases of new qualifying vehicles.
The sales tax savings provide even greater incentives for car
buyers, in addition to saving on expensive fuel costs and taking
advantage of federal tax credits.
The tax break will save car buyers an estimated $18.6 million over the next two years, according to Seattlepi.com.
