WA State EV Sales Tax Exemption Updated

[iwannam3]

I posted this on a conversation about someone getting their 3 in Seattle:
I wonder how many current owners are going to add to the 6,442 vehicles that have gotten the sales tax exemption limited to 7,500? Non-owners like me are getting worried we won't get it unless the legislature extends it.

This was a reply:
"There was another full transport truck at the Tesla delivery center this morning.

Our DS said that the goal was 500 deliveries this quarter. Good luck!"

I hope one of those 500 is mine!

 

[melindav]

having a Feb-April delivery estimate (currently at least...) and expecting that means late May at the earliest, I've already essentially come to terms with the exemption not being available to me. If it is still available, I likely will add FSD and the sales tax savings will cover most of it's cost.

 

[ChadS]

for those in Seattle, the FORTH meeting this month (thurs 18th at 4p) is discussing EV incentives
event link

I was unable to attend this event. Did anybody go? Any impressions? I heard that FORTH paid the speaker to come up, and he had been addressing lawmakers in Olympia the day before this talk. I am curious if they said anything about how that went.

From all I've heard, there seems to be enough support in both the senate and house to extend the sales tax waiver. There are already sponsors for bills on both sides. But one takes the money out of the multi-modal account for mass transit and other alternative forms of transportation, and the other takes it out of the general fund. Either way, that means somebody else is going to lose and fiercely oppose this, so this is not a slam dunk. From my extensive review of PEV incentive effectiveness, I am confident that this is a worthwhile investment - especially in WA, where the effects are more pronounced than in many other states. But few are aware of the full extent of the benefits, or of the effectiveness of the incentives.

 

[Autoxer7]

The House Transportation Committee this afternoon voted 20 to 4 in favor of HB 2563 and passed it out of committee with a do pass recommendation. This bill will extend the WA state EV sales tax exemption until June 2021 and eliminate the vehicle limit (currently 7500) portion of current law. This bill has bi-partisan sponsorship and is supported by the governor. It also includes an emergency clause and will go into effect immediately if/when signed by the governor.

Washington State Legislature

 

[iwannam3]

Now I have to think about waiting for other options since the pressure to get first delivery is off.

 

[DarthPierce]

Awesome news, but following the link I only see that it's in house committee... Where do you have the info on passing?

 

[Big-T]

Couple things that were pointed out on a related reddit thread that I never thought of before.....This appears to exempt the first $32,000 of STATE sales tax, which is 6.5% in Washington State. That means the remaining city/county taxes would apply to the whole amount.

In my head I was assuming the total benefit would be about $3,200 for a Seattle buyer but if this is correct the maximum benefit would be $2,080.

Just a little PSA for those who might have been thinking of the sales tax exemption like I was.

 

[Autoxer7]

Awesome news, but following the link I only see that it's in house committee... Where do you have the info on passing?
View attachment 277481

You'll have to watch the linked video from 31-Jan-2018. It was voted on by the House Transportation Committee (20 for, 4 against) and sent to the greater House with a "do pass" recommendation.

Assuming the House approves then the Senate would have to do the same before the governor signs. It still has hurdles (namely funding that critics contend is not equitable to people who can't afford EVs and takes money away from other programs) but there is bi-partisan sponsorship and support including the governor.

 

[im.thatoneguy]

Couple things that were pointed out on a related reddit thread that I never thought of before.....This appears to exempt the first $32,000 of STATE sales tax, which is 6.5% in Washington State. That means the remaining city/county taxes would apply to the whole amount.

That's not correct. Local Sales taxes are on the taxable value of retail goods sold. Whether an item is "taxable" or not follows state law. So if state law exempts sales tax, local tax follows suit.

 

[DarthPierce]

That's not correct. Local Sales taxes are on the taxable value of retail goods sold. Whether an item is "taxable" or not follows state law. So if state law exempts sales tax, local tax follows suit.

Excellent. $3300 ahead of where I'd assumed I'd be as long as it really does pass the house, senate, and Gov's desk.

 

[im.thatoneguy]

Yeah the state says that localities can charge a maximum of 3.5% on "taxable events" as defined by washington state law. Since the tax exemption modifies state "taxable events" to exclude EV sales, it's no longer a taxable event and therefore not subject to local taxes.

The state collects all local taxes. It's not really a "local" tax, it's a state tax that localities can tack on and get the money for. You can't even report more local tax than state tax. The website will error and refuse the filing.

 

[MikeBur]

The taxable amount charged is at state + local rate (plus 0.3% for auto) of amount above 32k, eg. (56k-32k)*.(6.5% + 0.35 + 0.3%) for Bellevue, Redmond, ie $2472. This aligns with what’s on my invoice.

Tables for local for q1 18 are at
https://dor.wa.gov/sites/default/fi.../LocSalUseTx/LocalSlsUseFlyer_18_Q1_alpha.pdf

 

[deonb]

The taxable amount charged is at state + local rate (plus 0.3% for auto) of amount above 32k, eg. (56k-32k)*.(6.5% + 0.35 + 0.3%) for Bellevue, Redmond, ie $2472. This aligns with what’s on my invoice.

Tables for local for q1 18 are at
https://dor.wa.gov/sites/default/fi.../LocSalUseTx/LocalSlsUseFlyer_18_Q1_alpha.pdf

Good to know. So we're thinking about trading in our Nissan Leaf - the trade-in value offered by Tesla is $15'000.

We also have a $56k build price.

With the trade-in, would that mean our WA Sales Tax is calculated as: ($56k - $15k - $32k) * ~10% = ($9000 * 10%) = ~$900 ?

 

[Big-T]

That's not correct. Local Sales taxes are on the taxable value of retail goods sold. Whether an item is "taxable" or not follows state law. So if state law exempts sales tax, local tax follows suit.

Thank you for that clarification! as well MikeBur's post confirming thats how his invoice is shown. One of those times I'm happy to be wrong!

 

[MikeBur]

Good to know. So we're thinking about trading in our Nissan Leaf - the trade-in value offered by Tesla is $15'000.

We also have a $56k build price.

With the trade-in, would that mean our WA Sales Tax is calculated as: ($56k - $15k - $32k) * ~10% = ($9000 * 10%) = ~$900 ?

TTBOMK, Correct. You can get more accurate if you know where you’re picking it up.

In wa state the taxable amount is after trade in has been deducted.
Autos are charged the local sales tax applicable at the location of sale, not residential address,
Also, there is an additional 0.3% in wa state just for cars.,

 

[MikeBur]

@deonb presuming you have standard wheels too and wish to remove aero wheel covers then you should order grey wheel center caps and black lug covers from parts as soon as you configure . Take them to delivery and you can change them out immediately. ~50$ for nicer looking wheels imo

 

[deonb]

@deonb presuming you have standard wheels too and wish to remove aero wheel covers then you should order grey wheel center caps and black lug covers from parts as soon as you configure . Take them to delivery and you can change them out immediately. ~50$ for nicer looking wheels imo
View attachment 277778

Where do you find it? I can’t see it on shop.tesla.com

 

[MikeBur]

Where do you find it? I can’t see it on shop.tesla.com

Not on Tesla shop online. You have to phone up service center and order them using your S vin.

I do recommend the trunk liner. Fits like a glove and it appears to be weathertech rubberized one so good for lots of wet gear / snow / slush

 

[iwannam3]

TTBOMK, Correct. You can get more accurate if you know where you’re picking it up.

In wa state the taxable amount is after trade in has been deducted.
Autos are charged the local sales tax applicable at the location of sale, not residential address,
Also, there is an additional 0.3% in wa state just for cars.,

I'm in Vancouver so the car will come from Portland so I'm assuming it would be based on my residential address?

 

[PLUS EV]

IIRC it is based on the residential address. You order it online, so tehcnically you aren't buying the car in Seattle or Portland or wherever.

I remember when I got my S, they told me it was a certain amount, so I brought a cashiers check in that amount only to then have them tell me it was ~$100 more. After inquiring about the difference, I think it was because they were trying to charge me Seattle sales tax while the car is actually registered in a different county altogether.