WA State EV Sales Tax Exemption Updated

[MikeBur]

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.

Interesting. I double checked re residential rate vs rate of collection location as I also thought it was residence address for cars. TM confirmed collection location.

The department of revenue for WA segments based on city as well as county. They did confirm that since July 2008 sales tax is based on location of delivery of goods, incl cars: Determine the location of my sale | Washington Department of Revenue. I don’t know what the implications are if you tried insisting on having your car delivered to your home address...

@iwannam3 Between states it definitely is different, though would hope it’s residential address in state on new sale, I don’t know. I do know you need to pay wa state use tax if you don’t pay the new vehicle sales tax which might lose you the sales tax reduction. Just ask your DS for the final invoice and work from there.

Let us know what you find out

 

[iwannam3]

No update on the sales tax exemption website yet. Unfortunately an update from Tesla: Line waiter day 1 11:00 sign up, non owner. Was Nov-Dec for first production, then Dec-Feb, now Mar-Jun if that can be believed. I gotta hope everyone bought their EV in Dec to get the $7,500 on 2017 taxes and Jan & Feb & Mar are going to be slow months. Except for all the owners getting their 3 before me.

 

[PLUS EV]

No update on the sales tax exemption website yet. Unfortunately an update from Tesla: Line waiter day 1 11:00 sign up, non owner. Was Nov-Dec for first production, then Dec-Feb, now Mar-Jun if that can be believed. I gotta hope everyone bought their EV in Dec to get the $7,500 on 2017 taxes and Jan & Feb & Mar are going to be slow months. Except for all the owners getting their 3 before me.

Doesn't the $7500 rebate apply to 2018 and beyond as well? I thought they left that in the tax bill.

 

[iwannam3]

Doesn't the $7500 rebate apply to 2018 and beyond as well? I thought they left that in the tax bill.

I was referring to the WA sales tax exemption that may expire in April when 7,500 exemptions have been given. There is a bill to extend the sales tax exemption in the current legislative session.

 

[PLUS EV]

I was referring to the WA sales tax exemption that may expire in April when 7,500 exemptions have been given. There is a bill to extend the sales tax exemption in the current legislative session.

Oh okay. You placed a dollar sign in front of the 7500 which made me think you were talking about the Federal tax credit.

 

[melindav]

Oh okay. You placed a dollar sign in front of the 7500 which made me think you were talking about the Federal tax credit.

I believe @iwannam3's original point was more people would have rushed into buying in December when the Fed credit was uncertain (to lock in the $7500 credit), so the sales over the next couple months may be lower than the past average - stretching the WA credit a bit longer (lets hope this new extension does happen though, then most everyone waiting will get the tax exemption).

 

[alloverx]

Should it be extended, are WA taxpayers getting approx $3,000 worth of value for every Bolt/Model-3 sold? Perhaps we are in health and environmental benefits or does it just "feel good".

 

[iwannam3]

The exemption is for EVs hybrids and natural gas with an MSRP $42,000 or less so S and X don't meet the spec. It is to promote clean vehicles in an area abundant in hydro power I believe.

 

[alloverx]

One could almost argue the M3 does not qualify as you cant buy one with that MSRP.

 

[melindav]

One could almost argue the M3 does not qualify as you cant buy one with that MSRP.

It is written for “base” msrp. That is $35k.
Besides, even optioned, if you are patient, you will be able to get one under $42,500

 

[ChadS]

Should it be extended, are WA taxpayers getting approx $3,000 worth of value for every Bolt/Model-3 sold? Perhaps we are in health and environmental benefits or does it just "feel good".

I can't seem to find the document right now, but absolutely. Between utility benefits, (PSE estimates $1500 each year), reduced costs for air and water cleanup, reduced costs to meet carbon goals, economic effects of spending less on fuel, economic effects of buying local fuel, the $3k is a bargain.

Keep in mind it is not really $3k per car either. With network effects it helps sell Teslas that do not qualify, and some EV sales would not have been ICE sales so the sales tax revenue is not always "lost". In fact if the car is expensive, like a loaded 3, it is a net gain.

The state gains a lot more than the lost revenue per EV on the road. That has converted many legislators who had the same question.

 

[melindav]

update thru January... 6,766. lets hope that bill to extend it to 2021 without a cap comes thru!

 

[iwannam3]

Still aiming for April....

 

[ReddyLeaf]

Should it be extended, are WA taxpayers getting approx $3,000 worth of value for every Bolt/Model-3 sold? Perhaps we are in health and environmental benefits or does it just "feel good".

Absolutely! What’s the multiple effect in economics when someone doesn’t spend $1000-$1500 per year on gasoline? Remember, WA has zero oil resources and almost all of that money leaves the state. Furthermore, we export about half of our electricity out of state, when we could be using that $0.07/KWh stuff to push EVs around instead of using explosives.

 

[iwannam3]

Absolutely! Remember, WA has zero oil resources and almost all of that money leaves the state.

Washington does have several refineries in Ferndale and Anacortes. So we get oil tankers in state water and the refinery emissions in our air and water.

 

[melindav]

Appears the HB2653 made a little progress yesterday and cleared the House finance committee
"Committee relieved of further consideration, Referred to Rules 2 Review"

so should next go back to the House floor for a 2nd reading, possibly amended at that time.

 

[Foxhound199]

Never heard back from my representative, but looks like she voted in favor! Appears there was very little opposition on the transportation committee, hopefully that bodes well for its chances.

 

[Daniellane]

Assuming the 7500 car milestone is hit in April, how much time, if any will the $3200 sales tax exemption continue to be available beyond that point? Through the balance of the quarter?... Not at all?
I’m sure this has been asked & answered. My searches haven’t provided the answer.
As of yesterday I can configure our Model 3. 3-6 week delivery.
I would like to hold our place in line for the dual motor option. Might not be worth losing the exemption.
Thanks

 

[melindav]

Assuming the 7500 car milestone is hit in April, how much time, if any will the $3200 sales tax exemption continue to be available beyond that point?

if the 7,500 is registered in April, it would be reported in May and the exemption will remain thru May and June.

 

[Daniellane]

Appears the HB2653 made a little progress yesterday and cleared the House finance committee
"Committee relieved of further consideration, Referred to Rules 2 Review"

so should next go back to the House floor for a 2nd reading, possibly amended at that time.

What do you think the odds of this’s passing are? Worth a risk holding out for Dual Motor (late 2018)?