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WA State's Governor is proposing an extension for EV Sales Tax exemption. Act Now!

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this is one of my biggest pet peeves! Not everyone that buys/owns a tesla would agree with this statement. Sorry but my tesla was a stretch for me and I would never say that anyone could afford to pay $10,000 in taxes! That's more than a couple options that's the difference between a 60 and an 85 or what used to be P85!

If id have had to pay the $10,000 in taxes I would have been forced into a 60.

Rant over

Agree, economically and morally speaking. And some saw their affordability break even because of the tax breaks too, between nothing and a S40 or S60 'bare'. These people now drive an EV, evangelize tesla/EVs for more years, and are hooked for life on non-ICE transport because of that incentive. And morally, there's enough tithe to the gov't already, including many expenses that are oil related.
 
Agree, economically and morally speaking. And some saw their affordability break even because of the tax breaks too, between nothing and a S40 or S60 'bare'. These people now drive an EV, evangelize tesla/EVs for more years, and are hooked for life on non-ICE transport because of that incentive. And morally, there's enough tithe to the gov't already, including many expenses that are oil related.

Well said.

Although the local headline below from todays Seattle Times is not specifically on this issue, I suspect that the legislative group identified will be unreceptive to extending the tax break. Pure speculation, however, and I'd be happy to be wrong.

Senate Republicans add big hurdle for new taxes | Local News | The Seattle Times
 
There are some hearings on this (and other EV topics) next week. I can't make it on Wednesday, but I will probably be there for the sessions on Thursday. If anybody else can make it - note that lawmakers really pay attention to citizens that bother to show up! Our numbers are very few as most people there are paid lobbyists. You are welcome to take a couple of minutes to testify about why you support the bill, or you can just sign in and indicate your position.

SEVA information follows. If you do plan to show up, you might drop a note to John McCoy of SEVA so he knows how many supporters to expect (and can possibly arrange carpools): jjmccoy at gmail dot com

[...]
Things are heating up in Olympia, and there are 4 different hearings next week on critical EV related bills. I'm looking to have folks show up and testify "PRO" on all the bills below. ​The commercial vehicles bill is a new idea but appears to have the most support of all of them.



Wednesday will be particularly tricky for me since they scheduled both transportation committees at the same hour. Please let me know if you can attend and help me tag-team those.
[...]
JJ​

----------------------------------​

Wednesday, Feb 4

3:30 p.m.
House Transportation Committee
House Hearing Rm B
John L. O'Brien Building
1)HB 1396 – Incentivizing the use of alternative fuel commercial vehicles with tax preferences


3:30 p.m.
Senate Transportation Committee
Senate Hearing Rm 1
J.A. Cherberg Building

1)SB 5325 -- Incentivizing the use of alternative fuel commercial vehicles with tax preferences
2)SB 5333 – EV Caucus Bill -- Extending the sales and use tax exemption for clean alternative fuel vehicles.
3)SB 5444 -- Establishing an electric vehicle infrastructure bank.


Thursday, Feb. 5

8 a.m.
House Environment Committee
House Hearing Rm B
John L. O'Brien Building

1)HB 1487 -- Reducing emissions by making changes to the clean car standards and clean car program. (ZEV Mandate)

1:30 p.m.
Senate Energy, Environment, and Telecommunications Committees
Senate Hearing Rm 4
J.A. Cherberg Building

1)SB 5446 -- Requiring incentives for electric vehicle readiness in buildings.
2)SB 5445 -- Extending the alternative fuel vehicle retail sales and use tax exemption.​ (Governor's bill)​


 
How is this for an update? I like the idea of free ferry rides for electrics.

Free ride proposed for electric cars on Washington ferries | The Today File | Seattle Times

I think free is shortsighted. Provide a quick access/priority boarding in (i.e. bypassing lines of ICEs) and you'd be selling BEVs like cake. It's more of a departure from current boarding approaches but it would tap into a lot of demand. Not sure, given it's partially a state run op, that it's even legal to charge more for priority access. But it's an idea I like to toss out there.
 
For those of you that can't make it to Olympia in person, below info that SEVA is sending out about contacting your legislators. You can find yours HERE.

===================================

SUGGEST TEXT FOLLOWS, PLEASE PERSONALIZE AS YOU LIKE
-------------------------------

Dear Senator and Representatives

As your constituent, I'm asking you today to support electric vehicles (EVs) and other alternative fuel vehicles with continued sales tax incentives and infrastructure via the following bills:

· HB 1925 / SB 5445,
· SB 5333,
· HB 1572 / SB 5444, and
· SB 5446.

If you are already co-sponsoring one or more of these bills, thank you for your support on this vital issue!

Not only are EVs fun to drive -- with great acceleration and smooth handling -- but they also provide Washington with several key environmental and economic benefits that our state needs. And these benefits are worth far more than the approximately $3,000 per vehicle tax incentive that Washington currently provides. The benefits include:

· Lowering Washington's carbon emissions. The largest share of Washington's carbon emissions -- about 40% -- come from transportation. Washington has a great alternative to gasoline with one of the cleanest electricity grids in the county. Studies have shown that EVs powered by hydropower, wind, solar and natural gas electricity sharply reduce carbon emissions compared with gasoline powered vehicles, and we have those energy sources in abundance.


· Improving our local air quality. Gas-powered cars emit a toxic brew of nitrogen oxides (NO[SUB]x[/SUB]), particulates, carbon monoxide (CO) and Ozone (O[SUB]3[/SUB]) -- all things that can be avoided with clean-powered EVs. This is why our regional air quality agencies regard EVs as a key method of attaining our federal air quality goals. Better air quality, especially for those who live near roads and freeways, means better human health and lower incidence of asthma, lung disease and other ailments.


· Improving the state economy. Driving electric costs the equivalent of about $0.85 a gallon at Washington's low electric rates. Money saved on fueling is money that Washingtonians can spend on other goods and services. Studies show that pretty much every other sector of our economy (food, entertainment, personal services) generates more jobs than gasoline production, a huge multiplier that keeps more of our hard-earned dollars right here in the state.

The Governor has proposed several bills to support electric passenger vehicles (along with other alternative fuels such as hydrogen, natural gas, and propane, which are tax exempt in current law). In addition, Washington's first-in-the-nation EV Caucus, with bi-partisan and bi-cameral representation among legislators in Olympia is offering a similar approach. I urge you to sponsor and vote for the following bills today:

1)Please extend the clean alternative fuel vehicle sales tax exemption past July.
Governor's bill (HB 1925 / SB 5445)
EV Caucus bill (SB 5333 / House variant pending introduction)

2)Please create a new infrastructure bank that allows WSDOT to build out public charging stations, working in partnership with private businesses.
Governor's bill (HB 1572 / SB 5444)
EV Caucus bill (SB 5333 / House variant pending introduction)

3)Please support local incentives for EV charging stations in homes and businesses.
Governor's bill (SB 5446)

Thank you for your hard work on behalf of the district and your consideration of this important legislation.

Sincerely,

[Name],
[City], WA
 
Last edited:
Chad,

Another point you might want to consider adding, and one that Governor Inslee has made in the past in defense of the EV sales tax exemption, is the cost to WA state for ground water cleanup from oil and gas leakage from ICE cars and gas stations. If I recall correctly, I believe he had said that's a cost that runs into the hundreds of millions of dollars a year (don't quote me on that though). EV's don't contribute to this cost to the state, and thus tax payers.

Also, one argument to support leaving the current EV sales tax in place without a cap is that a Tesla Model S likely displaces a larger, less fuel efficient ICE than a Nissan Leaf does, therefore having a proportionally larger benefit on emissions reduction.

Good luck everyone!
 
The SEVA text wasn't mine; but I agree with your additions earlyadopter, and will try to include them in my testimony.

Note that above I had mentioned a possible EV parade on Wednesday. I edited it out; it doesn't look like there will be enough cars. Hopefully we can have more notice next time.
 
ChadS,
Thanks for the SEVA text.
Well thought out and well worded.

I am new to the group (current owner of Nissan Leaf with Tesla Model S 85D arriving in mid-March), and I'm hoping this legislation is approved soon.

ecosuave'
(Brett Cooley)
 
Sen Mullet's bill (to extend the sales tax waiver, with a 40k cap) made it out of the Senate transportation committee this week. It next goes to Ways and Means, and it sounds like Mullet has already gone over it with the head of that committee and he's on board too. So it should at least receive a vote in the Senate (which was the stumbling block for all the EV bills last year).

Nothing is through the house yet, although it sounds like the version with a 30k cap has a decent chance.

So far it doesn't sound like any other EV bills are likely. But if we get any version of the sales tax waiver through, we've at least done better than we did last year.
 
Thanks, all, for keeping us up to date with this information.

I'm in a situation where I can have my Model X delivered in either Washington or Texas. When I originally reserved, I thought it would be delivered before 7/1/15, so I scheduled it for WA delivery to get the tax advantage. Oh well...

TX has a much lower sales/use tax on vehicles (6.25%), whereas the WA rate is around 9%. It sounds like there will be limits on either WA bill (assuming one is passed) that would pretty much eliminate the advantage of having the car delivered in Washington in my case.

Texas has a $2500 tax rebate on EVs sold IN TEXAS, which of course doesn't apply. Hopefully the TX legislature will lift the silly ban on sales and I can get that! (not holding my breath).

Good luck with getting the all the legislation passed!
 
Sorry for ignorant question. Is 30 to 40 K cap the total price of the car? (ie Leaf would be eligible, but not Tesla?)

or is 30k-40K proposal a cap on sales tax waver if for example you purchased multiple Model S, tax could be up to 40K?

Sen Mullet's bill (to extend the sales tax waiver, with a 40k cap) made it out of the Senate transportation committee this week. It next goes to Ways and Means, and it sounds like Mullet has already gone over it with the head of that committee and he's on board too. So it should at least receive a vote in the Senate (which was the stumbling block for all the EV bills last year).

Nothing is through the house yet, although it sounds like the version with a 30k cap has a decent chance.

So far it doesn't sound like any other EV bills are likely. But if we get any version of the sales tax waiver through, we've at least done better than we did last year.
 
I hear ya Ber. When I reserved my X I assumed it would get here before the deadline. We don't need it in the first place, so now I think we are just going to cancel the reservation.

Lori, the cap is on the amount of the vehicle price that has sales tax waived. So if the cap is 35k, and you buy a $30k LEAF, you don't pay any tax. If you buy a $100k Tesla, you pay tax on $65k.
 
Sorry for ignorant question. Is 30 to 40 K cap the total price of the car? (ie Leaf would be eligible, but not Tesla?)
or is 30k-40K proposal a cap on sales tax waver if for example you purchased multiple Model S, tax could be up to 40K?
Here's the text from one version (back when the cap was 60K):
The tax levied by RCW 82.08.020 does not apply to the first sixty thousand dollars of the purchase price

- - - Updated - - -

Lori, the cap is on the amount of the vehicle price that has sales tax waived. So if the cap is 35k, and you buy a $30k LEAF, you don't pay any tax. If you buy a $100k Tesla, you pay tax on $65k.
Continuing...
http://www.tax-rates.org/washington/sales-tax
The Washington sales tax rate is 6.5%, and the maximum WA sales tax after local surtaxes is 8.88%.

$65k * 8.88% = $5,772

So your $100k Tesla costs almost $6k more out of pocket on July 1st vs. June 30th (2015) even if they do "extend but modify" the current exemption.
 
This was posted over on the Tesla forum. Does anyone have more information on the Sales Tax exemption extension bills?
"The sales tax exemption was going to be gone forever starting July 1st. They extended the sales tax exemption but with a $35k cap starting on July 1. I don't have any more details at this time. None of the other BEV incentive proposals passed as far as I can tell."

- - - Updated - - -

Here's the text from one version (back when the cap was 60K):


- - - Updated - - -


Continuing...
http://www.tax-rates.org/washington/sales-tax


$65k * 8.88% = $5,772

So your $100k Tesla costs almost $6k more out of pocket on July 1st vs. June 30th (2015) even if they do "extend but modify" the current exemption.

Any idea how a trade-in would affect sales tax with this cap? If the current general WA State policy of excluding the value of the vehicle trade from the sales tax calculation reduces the taxable portion to equal or lower than the EV exemption amount, could you avoid extra sales tax?
 
This was posted over on the Tesla forum. Does anyone have more information on the Sales Tax exemption extension bills?
"The sales tax exemption was going to be gone forever starting July 1st. They extended the sales tax exemption but with a $35k cap starting on July 1. I don't have any more details at this time. None of the other BEV incentive proposals passed as far as I can tell."

Doesn't look like they've passed anything. As far as I can tell these are the bills that would do this (there might be some other bill that it's buried in though).

SB 5333 (this is the one that was discussed above it's still not through Ways & Means, the original bill was for first $45k, current substitute bilil is for $40k)
HB 2087 (this one is for the first $35k, had a hearing in Transportation. This might be the one mentioned by the person quoted above)
SB 5445 (this one is for the first $60k, had a hearing in Energy, Environment and Telecom committee but hasn't gone anywhere)
HB 1396 (this one appears to only extend it to commercial vehicles and has hand a hearing and an executive session in Transportation)
SB 5325 (this one is similar to HB 1396, had a public hearing in Transportation)
HB 1925 (this one just extends the existing law to 2025, had a public hearing in Finance)

As you can see all of these are still sitting in Committee. So unless they attached this to some other bill I didn't find I don't think they've done anything.
 
No EV bill has been passed this session so far.

Very good progress has been made on getting a capped EV sales tax exemption extended beyond July 1st.

With the court ordered mandate to fully fund education hanging over this legislative session getting any extension of the EV sales tax exemption was a long shot. There was special concern in getting a bill through the Senate.

In something of an ironic twist more progress is being made in the Senate. SB 5333 was approved by the Senate transportation committee on a 9-3 vote and sent to the Senate Ways and Means committee. This was a huge victory that margin of approval was initially thought not possible. Sen. Mullet (a key bill sponsor and EV car owner) did a terrific job along with help from SEVA, Plug in America, Nissan and many others. When testimony was given on the bill to the Transportation committee there was roughly 15 people speaking in favor of the bill and only 1 against (and that person basically admitted he almost did not testify against the bill because of the obvious "love in" for the bill that was occurring.

I also believe the Senate bill is a very good bill. Opponents of the EV tax exemption like to paint is as a gift to rich people for "toy" EV cars. By capping it at roughly the price of a Nissan Leaf we are making a strong statement that the bill supports any Washington state citizen who wants to make a choice for an EV car that is clean, keeps power dollars in the state, uses renewable energy and promotes US energy independence. And the best part is any sales tax on an EV that is collected (the portion above $40,000) goes into a dedicated fund to improve EV charging infrastructure in the state.

BUT there is a ling way to go:

We need the senate bill approved in Ways and Means and on the Senate floor.

And we need more progress on the house bill and improvements to it since it is not as good as the Senate bill.

What can you do to help? Most importantly contact your own representatives. E-mail, call, ideally visit them. One person can make a big difference with their own senator and representatives. Contact and thank bill sponsors. Contact sponsors of the house bills, thank them and ask them to improve their bill to match SB 5333.

This is still an up hill battler. Smart money is that it wont pass but I believe with the progress in the Senate we still have a good chance to get the bill passed.

David Kiker
Treasurer - Washington EV Advocacy PAC - wevapac.com