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Model X WA sales tax exemption

pereiks

Member
Sep 25, 2019
126
24
Sammamish, WA
I've read before that model X price exceeds 45k and so it's not eligible for sales tax exemption, however while reading Clean alternative fuel and plug-in hybrid vehicles - sales/use tax exemptions | Washington Department of Revenue, it looks like it actually might be eligible.

The exemption will be applied to the sales price or fair market value when you purchase or lease a new passenger car, light duty truck or medium duty passenger vehicle that meets one of the following requirements:

  • The vehicle is powered exclusively by a clean alternative fuel.
  • The plug-in hybrid is capable of traveling at least 30 miles using only battery power, and sold or valued at $45,000 or less.

However special notice to the car dealers says that all cars are capped at the 45k sales price: https://dor.wa.gov/sites/default/fi...ialNotices/2019/sn_19_CleanAltHybridExmpt.pdf

Related RCW is a bit confusing but if you follow the usual precedence of logical and/or, it says that purely electric cars are eligible with any sales price (RCW 82.08.9999: Exemptions—Vehicles using clean alternative fuels and electric vehicles. (Expires August 1, 2028.)):

(1) Beginning August 1, 2019, with sales made or lease agreements signed on or after the qualification period start date:
(a) The tax levied by RCW 82.08.020 does not apply as provided in (b) of this subsection to sales or leases of new or used passenger cars, light duty trucks, and medium duty passenger vehicles that:
(i) Are exclusively powered by a clean alternative fuel; or
(ii) Use at least one method of propulsion that is capable of being reenergized by an external source of electricity and are capable of traveling at least thirty miles using only battery power; and
(iii)(A) Have a vehicle selling price plus trade-in property of like kind for purchased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed forty-five thousand dollars; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed thirty thousand dollars; or
(B) Have a fair market value at the inception of the lease for leased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed forty-five thousand dollars; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed thirty thousand dollars;

I'd love to hear others opinions. Based on my order, Tesla isn't applying this exception, but it seems I can try to apply for a sales tax refund.
 

ChadS

Last tank of gas: March 2009
Jul 16, 2009
3,346
2,728
Redmond, WA
I agree the legislation is poorly worded.

But the intent of the legislature, and the interpretation by the DOR is clear. The X is not eligible.
 

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