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May23

Out-of-State Sales Tax Changes

Categories // Dealer Alerts, Dealer Alerts

We’re hearing a lot of justified concern from members near the border about changes to out-of-state sales tax laws. The short, cut-to-the-chase of it is that changes to out-of-state sales tax laws made during the 2018-19 legislative session do not impact independent auto dealers.

The longer version of it is that ESSB 5997, one of a flurry of bills passed by the state Legislature as part of their late-night budget sessiondoes eliminate the automatic sales tax exemption that out-of-state purchasers got on general things (parts, for example).

Vehicles sold to out-of-state buyers, however, are exempt from sales taxes thanks to a different statute – RCW 82.08.0264, to be exact. And no changes were made to that, so no changes need to be made to how dealers sell to out-of-state residents.