Hybrid Vehicle Sales Tax Exemption Ends Aug. 1
Olympia, Wash., May 18, 2009 — the sales tax exemption for certain hybrid vehicles ends Aug. 1.
Purchasers of new hybrid vehicles will need to take possession by July 31 to receive the exemption. Lease payments on previously qualifying hybrids will become subject to sales tax after July 31.
The exemption for vehicles with an EPA highway mileage of at least 40 miles per gallon took effect Jan. 1, but was repealed by the Legislature as part of Engrossed Substitute Senate Bill 6170, which revised several environmental tax incentives.
Hybrid vehicles will still be exempt from the 0.3% motor vehicle sales tax, and purchases of new vehicles powered by clean alternative fuels such as natural gas, propane, hydrogen or electricity will continue to be exempt from all sales taxes through Dec. 31, 2010.