WA State EV Sales Tax Exemption Updated

[melindav]

that was about the same response I got from DOL when asking earlier this year, but got a reply within a day. never did get a reply from DOR, not even an auto reply. (but they are very quick to start calling if my self employment tax due, normally in the range of $1.25/year is a day late, they start calling daily! maybe next january I will intentionally put it off and ask when they call )

 

[pilotSteve]

Yikes! Is there a form assigned by DOL or DOR that they want us to submit?

 

[iwannam3]

Yikes! Is there a form assigned by DOL or DOR that they want us to submit?

I sent a request to the DOR public information email address and also to my local state rep asking her to get to the bottom of this.

 

[Foxhound199]

As a brief followup, my state rep never got back to me. I hope you have better luck.

 

[iwannam3]

SUCCESS! Got a call from the DOR within 24 hours of emailing them! 5,029 alternative clean vehicles have had sales tax exemptions granted toward the 7,500 limit. Model 3s are going to burn through the 2,471 left pretty quick. Now that I have a contact that actually knows something I will try to find the monthly rate this year so far.

 

[Foxhound199]

Wow, way to go! I'm guessing given the rate it's been going and factoring in Model 3 deliveries, we're looking first half of 2018 for its expiration. Sorry WA AWD fans, I bet there are a lot of you.

 

[iwannam3]

Basically 5,000 from July 1,2016 to now without any Teslas. At that rate 2,500 more by the end of December. I would assume the rate is increasing with the Bolt and others recently released and 7,500 will be met long before December. Will the DOL and DOR be watching closely as 7,500 approaches? It is not like the Fed where it tapers off over time. I bet few, if any Model 3s will get to use the sales tax exemption.

 

[CarlitoDoc]

WA bureaucracy is the worst !!!!

 

[Foxhound199]

It is not like the Fed where it tapers off over time. I bet few, if any Model 3s will get to use the sales tax exemption.

True, but don't lose all hope. The law is written as such:

"The exemption under this section expires, effective with sales of vehicles delivered to the buyer or leased vehicles for which the lease agreement was signed, after the last day of the calendar month immediately following the month the department receives notice from the department of licensing under subsection (7)(b) of this section."

Further, it indicates that the DOL must report when sales have reached the quota by the 5th day of the month. That means from the point we cross the 7500 line, there will still be time left on the credit. For example, say the 7500th car is registered Dec 15. The DOL won't report this until Jan 5. From then, the credit doesn't expire until the last day of the next month, Feb 28th. So I stand by my original assessment that early reservers wanting RWD--possibly even some that don't want LR and PUP--should be fine.

 

[iwannam3]

I wonder if Tesla will configure the number of vehicles available early in Washington to allow more of us to take advantage of the sales tax benefit? Are they even aware of it?

 

[Foxhound199]

Basically 5,000 from July 1,2016 to now without any Teslas.

Also, just want to point out that the start date for the count is retroactive to July 15, 2015. So assuming sales are steady, this would lead to reaching the number a little less than a year from now. Sales, of course, will not be steady, though I doubt they've been accelerating recently. The trend over the last couple years has been towards more Teslas and fewer Leafs and Volts. So I think the only big disruptor to the trend will be the Model 3 itself.

 

[iwannam3]

Here is the law: RCW 82.08.809: Exemptions—Vehicles using clean alternative fuels and electric vehicles, exceptions—Quarterly transfers. (Contingent expiration date.) There is confusion about the July 2015 and July 2016 dates. My current best guess is the program started July 2015 with a $32,000 limit on the vehicle price and then in July 2016 the cap was raised to $42,500 but with a maximum sales tax exemption for only the first $32,000. The 5,029 are from July 2015, not July 2016. Is that what it looks like now?

 

[melindav]

Here is the law: RCW 82.08.809: Exemptions—Vehicles using clean alternative fuels and electric vehicles, exceptions—Quarterly transfers. (Contingent expiration date.) There is confusion about the July 2015 and July 2016 dates. My current best guess is the program started July 2015 with a $32,000 limit on the vehicle price and then in July 2016 the cap was raised to $42,500 but with a maximum sales tax exemption for only the first $32,000. The 5,029 are from July 2015, not July 2016. Is that what it looks like now?

that is my understanding as well

 

[zmarty]

I wonder if Tesla will configure the number of vehicles available early in Washington to allow more of us to take advantage of the sales tax benefit? Are they even aware of it?

Not sure what you mean. What does Tesla have to do? From what I understand from this thread all Model 3's are eligible, regardless of options.

 

[iwannam3]

Not sure what you mean. What does Tesla have to do? From what I understand from this thread all Model 3's are eligible, regardless of options.

Tesla could move Washington residents up the priority level and "dump" a bunch of Model 3s into Washington early so more can take advantage of the sales tax exemption rather than Chevy Bolts etc. Every Bolt in the program means 1 less Tesla getting the sales tax exemption.

 

[Foxhound199]

Tesla could move Washington residents up the priority level and "dump" a bunch of Model 3s into Washington early so more can take advantage of the sales tax exemption rather than Chevy Bolts etc. Every Bolt in the program means 1 less Tesla getting the sales tax exemption.

Pretty sure that would require more thoughtfulness than has ever been paid to the state of Washington by a person living in California in history.

 

[ibdb]

Tesla did prioritize Model S deliveries in advance of an earlier sales tax policy change in Washington state. I know. I took advantage of it.

 

[ChadS]

Yes, that was the state sales tax waiver for Teslas that ended on June 30, 2015. Tesla went way out of their way to deliver as many cars as possible by the deadline. They moved store product specialists to deliveries, brought up people from CA, and hired temporary contract workers (I was one).

The store managers ordered a ton of inventory cars to be shipped up, which as expected got snapped up by people hearing about the deadline at the last minute.

Tesla can't put the whole rest of the world on hold, but they do what they can...

 

[Foxhound199]

Wow, I stand corrected. That's pretty impressive.

 

[iwannam3]

Bingo! Got the real data from the DOL:

Linda forwarded me your request since I work directly with the Department of Licensing (DOL) to collect the qualifying vehicle count.

From July 15, 2015, through June 30, 2016, sales and leases of vehicles powered exclusively by clean alternative fuels and plug-in hybrids capable of traveling at least 30 miles using only battery power were exempt from sales and use tax if the sales price of the vehicle was $35,000 or less.

Starting July 1, 2016, sales and leases of vehicles powered exclusively by clean alternative fuels and plug-in hybrids capable of traveling at least 30 miles using only battery power are entitled to a sales and use tax exemption of up to $32,000 of the selling price of the vehicle or total lease payments made. In order to qualify for this exemption, the vehicle must be on the list of qualifying vehicles as determined by the Department of Licensing (DOL). (The list of qualifying vehicles can be found atWA State Licensing (DOL) Official Site: Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions.) The exemption expires after the last day of the month following the month DOL notifies the Department of Revenue (Department) that 7,500 vehicles qualifying for a sales or use tax exemption have been titled since July 15, 2015. (For example, if DOL notifies the Department in October that 7,500 qualifying vehicles have been titled since July 15, 2015, the exemption expires December 1.) The vehicle count includes both sales and use tax exemptions in effect since July 15, 2015.

2,334 qualifying vehicles have been titled from January 1, 2017 through June 30, 2017.
*********************************************************************************************************************************************************

Doing the maths, the current count of 5,029 minus 2,334 = 2,695 as of Jan 1. At approximately 2,500 per 6 months, it looks like 7,500 will be hit by December for a Jan 31 cut off. I would assume rapidly increasing numbers of Bolt registrations in the last 6 months of the year. How do we get this information to Tesla since it seems like they did their best to accommodate WA Tesla customers? I'm far away from a WA Tesla dealer, can people bring it up every time they interact with Tesla?