Washington Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Washington Sales or Use Tax Applicable to Registration

 

 

6.5% sales or use tax plus, at the option of local counties or cities, an additional .5% to 2.1% when transferring a Washington Title or when applying for a Washington Certificate of Ownership for the first time. RESIDENTS are given CREDIT upon proof of any sales tax paid to another state. CREDIT is allowed for the value of a TRADE when calculating sales or use tax. NON-RESIDENT not required to pay Washington sales/use tax provided the vehicle is to be moved to their home state immediately on the authority of a Washington Trip Permit, or upon proper registration in their home state before delivery of the vehicle. A resident MILITARY person who has been discharged or released from the armed services will not be entitle to exemption from the use tax on any motor vehicle or trailer acquired LESS than 30-days prior to the date of discharge or release from the armed services. If a vehicle is purchased from a dealer, the sales tax is paid to the dealer who in turn remits it directly to the Department of Revenue. If a vehicle is purchased from a private individual, the use tax is paid to the Department of licensing. When a customer receives two vehicles from a dealer in trade for one vehicle from a customer, traded in as an even trade and no money changes hands, tax is collected on the difference; the trade MUST involve like vehicles (car/truck for car/truck, etc.). Beginning July 2000, the Automated Valuing System, an enhancement to current computer processing of title and registration work, was implemented. This automated approach helps agents and subagents in collecting use tax on the private sales of vehicles more equitable.