Summary of this Review

The Preference Provides Tax Type Estimated Biennial Beneficiary Savings

A sales and use tax exemption on the first $32,000 of a sale or lease agreement for qualifying new clean alternative fuel vehicles with a manufacturer's suggested retail price of $42,500 or less for the lowest price base model.

The preference is scheduled to expire when one of the following occurs:

  • The total number of qualifying vehicles titled on or after July 15, 2015, reaches 7,500.
  • July 1, 2019.

Sales and Use
RCWs 82.08.809; 82.12.809

$14.8 million

Public Policy Objective

The Legislature stated it wanted to increase the use of qualifying clean alternative fuel vehicles by reducing the price of such vehicles.

Recommendations

Legislative Auditor’s Recommendation

Review: The Legislature should review the preference in the 2019 legislative session if the number of qualifying vehicles titled in Washington has not reached 7,500.

Commissioner Recommendation: The Commission endorses the Legislative Auditor’s recommendation with comment.

The Legislature should review this preference and revisit its expectations for the number of qualifying vehicles.

Details on this Preference

Recommendations

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