Washington credits & fees - FAQ -

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MelindaV

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#1
Charging Equipment Installation
Here is the WA state sales tax exemption form that can be used for purchasing charging equipment & installation and EV batteries. If going into Tesla to purchase an extra UMC or WC bring the form with you. And At this time, the exemption goes thru 2020. The law can be read here.

Vehicle tax exemption (first $32k)
EV vehicles with a base price $42,500 and below qualify for the first $32,000 to be tax exempt.

UPDATE: as of April 16, 2018 the state has announced the 7,500 has been reached and tax exemptions go thru May 31st, then expire.

Registration
Currently there is an additional $150/year surcharge for registering an EV. This is to take the place of the gas tax EVs are not contributing to. but no emissions testing! read more here.

Sound Transit - Regional Transit Authority additional fee based on vehicle value
Passed in the 2016 election, the RTA will now be adding a fee to vehicle registrations in their service area that is based on the vehicles MSRP (options and software are not included in the valuation - $35,000 for standard range, $44,000 for long range) with an annual standard depreciation rate.
Info on the fee can be seen on the WDOLs site here.
 
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MelindaV

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#3
Any idea how close it's to 7,500 vehicles sold? Still able to be sales tax free on the first $32K?
the report should be out for the last year within the month or so. Last year it was released in September, however, it shows more cars than actually qualify for the tax exemption - so not sure how much of a help it really is
 

MelindaV

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#4
a user on TMC finally got ahold of someone at the state that was able to give an actual number for of vehicles that have been counted toward the 7,500... (if interested in checking out that conversation, the really good stuff begins at post #45, depending on how you see 'good stuff' :( )

as of this month there has been 5,029 vehicles exempted as of 7/15/2015.

The same user has reached out to Tesla with this information, as at this rate, it would appear we will likely hit the 7,500 by the end of the year. When the original exemption (that included the Model S, before it was limited to car value) was about to expire, Tesla made a huge push to get WA cars delivered. Obviously, things were a little different then than now as far as Tesla's backlog, but they have shown some compassion to owners' impending lose of a tax credit/exemption.

It would also be useful for people to reach out to your local state reps and Gov. Inslee's office asking if there are plans to extend the exemption as it was originally intended to stretch to mid 2019 and appears to be used up here in 2017.... being the ever-loving green state that we are and all, EVs should be something the state encourages it's citizens to invest in with this partial tax exemption.
 

BellevueEd

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#5
Charging Equipment Installation
Here is the WA state sales tax exemption form that can be used for purchasing charging equipment & installation and EV batteries. If going into Tesla to purchase an extra UMC or WC bring the form with you. And At this time, the exemption goes thru 2020. The law can be read here.
Puget Sound Energy customers can get up to a $500 rebate. It is limited to the first 5,000. More info and the submittal forms can be found here. (rebate program has ended as of 4/2017)

Vehicle tax exemption (first $32k)
EV vehicles with a base price $42,500 and below qualify for the first $32,000 to be tax exempt. This is on a rolling expiration that the DOR looks at the funds remaining quarterly and determines it's next expiration, but at this time looks like it will go thru mid 2019, but general reaction is it will be gone sooner. The exemption is also limited to 7,500 vehicles after 7/15/15.
I have confirmed with the state the tax exemption does not need to take place at a WA Tesla store, so SW WA residents can take possession and have Tesla Portland calculate the correct sales tax. This can be read here.

The latest summary report of the program to date can be viewed here (the report lists roughly 5,013 June 2015 thru June 2016 but it does not state how many of these qualified for the tax exemption and against the 7,500)

UPDATE: as of August 2017 5,029 vehicles have used the exemption toward the 7,500 maximum allowed.

Registration
Currently there is an additional $150/year surcharge for registering an EV. This is to take the place of the gas tax EVs are not contributing to. but no emissions testing! read more here.

Sound Transit - Regional Transit Authority additional fee based on vehicle value
Passed in the 2016 election, the RTA will now be adding a fee to vehicle registrations in their service area that is based on the vehicles MSRP (options and software are not included in the valuation - $35,000 for standard range, $44,000 for long range) with an annual standard depreciation rate.
Info on the fee can be seen on the WDOLs site here.

Melinda, the Washington State tax exemption is not limited to the first 7500 vehicles after 7/15/2017. It runs for up to two months past that date, per RCW 82.08.809:

(6)(a) 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. All leased vehicles that qualified for the exemption before the expiration of the exemption must continue to receive the exemption as described under subsection (1)(b) of this section on lease payments due through the remainder of the lease.
 
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RichEV

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#8
I have confirmed with the state the tax exemption does not need to take place at a WA Tesla store, so SW WA residents can take possession and have Tesla Portland calculate the correct sales tax. This can be read here.
1) I can't find any text in the referenced document that confirms the assertion?

2) I wonder how the information posted elsewhere (https://model3ownersclub.com/threads/i-got-my-invite.5312/page-7#post-56969) about paying sales tax in the state of delivery and losing the difference if your state of registration has lower sales tax applies here?
 

MelindaV

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1) I can't find any text in the referenced document that confirms the assertion?

2) I wonder how the information posted elsewhere (https://model3ownersclub.com/threads/i-got-my-invite.5312/page-7#post-56969) about paying sales tax in the state of delivery and losing the difference if your state of registration has lower sales tax applies here?
1. when the tax exemption was extended to vehicles up to 42500 in 2016, I reached out to my local Rep and asked. he followed up with Licensing and Revenue that the exemption on the $32k could be calculated by Oregon dealers. The law language specifically states if purchasing out of state and paying the tax at the WA licensing office, the exemption would be calculated at that time. But since Oregon will typically include WA tax at the time of the sale it sounds like that language is specifically for states beyond OR.
2. it would be the same. If you are buying from a state that would have a tax less than WA would collect, WA would collect the difference up to what would be due when you register.
 

BellevueEd

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1. when the tax exemption was extended to vehicles up to 42500 in 2016, I reached out to my local Rep and asked. he followed up with Licensing and Revenue that the exemption on the $32k could be calculated by Oregon dealers. The law language specifically states if purchasing out of state and paying the tax at the WA licensing office, the exemption would be calculated at that time. But since Oregon will typically include WA tax at the time of the sale it sounds like that language is specifically for states beyond OR.
2. it would be the same. If you are buying from a state that would have a tax less than WA would collect, WA would collect the difference up to what would be due when you register.
I live in the Seattle area. A few years back I bought a new Honda ('98 Accord coupe) in the Portland, OR, area. Next day I drove across the mighty Columbia River to Vancouver, WA, where I licensed the car. At that time I paid both the license fee and the sales tax on the purchase. The Oregon dealer had put a temporary paper license on the car good for one day. The issue of Washington sales tax did not come up. Things may have changed.
 

MelindaV

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I live in the Seattle area. A few years back I bought a new Honda ('98 Accord coupe) in the Portland, OR, area. Next day I drove across the mighty Columbia River to Vancouver, WA, where I licensed the car. At that time I paid both the license fee and the sales tax on the purchase. The Oregon dealer had put a temporary paper license on the car good for one day. The issue of Washington sales tax did not come up. Things may have changed.
the cars I've bought in OR while living in WA all have had the paperwork and tax done at the dealership (but has been more recent than '98)... so maybe it depends on the specific dealer.
 

MelindaV

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#12
the tax exemption currently has two separate bills that could potentially extend it beyond the 7,500 cap.
Also, the Senate's Transportation Committee is meeting to discuss the incentive & EV policies tomorrow (Tuesday 1/16/18).

OBP Article linked below said:
A bipartisan bill sponsored by state Rep. Jake Fey, D-Tacoma, would extend the electric vehicle tax exemption to June 30, 2021, and remove the cap. A separate bill from state Rep. Cary Condotta, R-Wenatchee, would buy time by lifting the cap to 10,000 vehicles before the sales tax exemption goes away.
https://www.opb.org/news/article/electric-car-tax-incentive-oregon-washington-northwest-sales/
 

MelindaV

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#13
As posted by Autoxer7 on TMC:
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
WA legislation has a short session and is moving very quickly, so expect to see the results of this being voted on and going to Gov Inslee within a week or two.
 

BellevueEd

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As posted by Autoxer7 on TMC:
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
WA legislation has a short session and is moving very quickly, so expect to see the results of this being voted on and going to Gov Inslee within a week or two.
The bill is HB2653, not 2563.
 

c2c

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#16
I was in the Bellevue Square Tesla store today, looking at the Red Model 3, and an employee said there were about 300 spots left for the Washington EV sales tax exemption. With my delivery slipped to 2nd quarter, i hope things improve.
Either way, I'm going red.
 

MelindaV

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I was in the Bellevue Square Tesla store today, looking at the Red Model 3, and an employee said there were about 300 spots left for the Washington EV sales tax exemption. With my delivery slipped to 2nd quarter, i hope things improve.
Either way, I'm going red.
not exactly correct. It continues for the month following DOL reporting to DOR that 7,500 eligible cars have been registered, so essentially 2 months following them hitting 7,500 registered.
As an example, if the 7,500th is registered on March 1st, it would be reported to DOR on April 5th and the exemption would be in place thru May 31st.

here's the language from the law:

"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."
hopefully we will hear soon on the non-capped extension to 2021
 

RichEV

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#18
Here
As posted by Autoxer7 on TMC:
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
WA legislation has a short session and is moving very quickly, so expect to see the results of this being voted on and going to Gov Inslee within a week or two.
As of today 3/1 the bill has passed the house and moved into the senate. The original end date for the legislative session is 3/8 so they should hurry this through!
View media item 561
 

MelindaV

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#20
video from this morning's Senate Transportation committee hearing with speakers from Tesla, Nissan, GM, Forth, Natural Gas advocates the bill sponsors and other local advocates (and oppositions objecting to it being funded by the Multimodal Transit Account).

there were not enough votes to recommend it due to opposition of it being funded from the Mutimodal Account (that also funds transit, bike and pedestrian programs)