2026 tax preference review: Automotive Adaptive Equipment for Disabled Veterans and Service Members
July 2026
Eric Whitaker, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Contact information
Legislative auditor's conclusion
The preference provides financial relief to disabled veterans and active-duty service members, as intended.
Read the full reportKey points
- Veterans and active-duty service members with disabilities can get a federal grant for automotive adaptive equipment that helps them use a motor vehicle. The grant does not cover sales tax.
- With the preference, the veteran does not pay sales tax if the grant program pays the seller on their behalf.
- Taxpayer savings declined from $507,000 in 2019 to $115,000 in 2024. Federal grants to Washington veterans have also declined. The reasons behind both trends are unclear.
- The preference provides ongoing tax relief. Additional reviews are likely to find the same outcomes.
Legislative auditor’s recommendations
State law requires the legislative auditor to recommend legislative action for each tax preference. The legislative auditor makes one recommendation.
Recommendation #1
The Legislature should continue the preference beyond its July 2028 expiration because it is meeting the Legislature's intent.
The preference continues to provide financial relief to injured veterans and removes a perceived competitive disadvantage, as intended.
Considerations
JLARC's 2017 review also found the preference met these objectives. Future reviews are likely to find the same.
The Legislature could also consider removing the expiration date and performance statement requirements.
Implementing the recommendation would have these estimated impacts. Impacts do not account for changes in taxpayer behavior.
- If this preference were continued without change, beneficiaries would have tax savings like those shown in the savings summary graph. This would reduce state revenues by a corresponding amount.
The Economic and Revenue Forecast Council (ERFC) forecasts state revenue. Its forecast reflects tax preference limits, actual use, and expiration dates.
On or before the preference's expiration date of July 1, 2028.
Responses from the Office of Financial Management (OFM) and the Department of Revenue (DOR) will be included with the proposed final report
Video summary
Read the full report
Automotive Adaptive Equipment for Disabled Veterans and Service Members (HTML)
Read an overview
Read the agency response
To be included in proposed final report
Legislative mandate