Washington § 82.08.817 - Additional tax on sales of certain motor vehicles.

(1)(a) Except as provided in subsection (4) of this section, in addition to the taxes imposed under RCW 82.08.020, there is levied and collected an additional tax of eight percent on the sale of a motor vehicle if:

(i) The selling price of the motor vehicle plus trade-in property of like kind for purchased vehicles exceeds $100,000; or

(ii) In the case of a lease requiring periodic payments, the value of the motor vehicle exceeds $100,000 at the inception of the lease.

(b) The additional tax imposed in this subsection (1):

(i) Is equal to the portion of the selling price plus trade-in property of like kind for purchased vehicles in excess of the deduction amount specified in subsection (2) of this section, multiplied by eight percent; or

(ii) In the case of a lease requiring periodic payments, is the value of the motor vehicle in excess of the deduction amount specified in subsection (2) of this section, at the inception of the lease, multiplied by eight percent.

(2) The deduction amount is $100,000 for fiscal year 2026. The deduction amount must be annually adjusted on July 1st of each year by increasing the amount by two percent and rounding the result to the nearest whole dollar.

(3)(a) In the case of a lease requiring periodic payments, the total tax due under this section for a leased motor vehicle may be collected and remitted proportionally with each lease payment over the term of the lease. The proportional amount of tax due with each lease payment must equal the total tax due divided by the number of scheduled lease payments.

(b) If a lease described in this subsection terminates before the end of the scheduled lease term, any unpaid portion of the tax imposed under this section becomes immediately due and payable at the time of lease termination. The department is authorized to adopt rules to prescribe the specific requirements and timelines for the collection, recording, and reporting of the tax due under this subsection.

(c) The lessor is responsible for collecting and remitting the tax imposed under this subsection.

(4) The taxes imposed under this section do not apply to the sale or lease of:

(a)(i) A commercial motor vehicle, as defined in RCW 46.25.010;

(ii) A motor vehicle that has a gross vehicle weight rating of greater than 10,000 pounds other than motor homes, as defined in RCW 46.04.305; or

(iii) From July 1, 2026, through December 31, 2026, a motor home, as defined in RCW 46.04.305.

(b) The exemptions available for the sale of motor vehicles under RCW 82.08.0317 and 82.08.0264 also apply to the tax under this section.

(5) The revenue collected under this section must be deposited in the multimodal transportation account created in RCW 47.66.070.

(6) For the purposes of this section and RCW 82.12.818, the following definitions apply:

(a) "Fair market value" has the same meaning as "value of the article used" in RCW 82.12.010.

(b) "Motor vehicle" has the same meaning as in RCW 46.04.320, but does not include:

(i) Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, unless the farm tractor or farm vehicle is for use in the production of cannabis;

(ii) Off-road vehicles as defined in RCW 46.04.365;

(iii) Nonhighway vehicles as defined in RCW 46.09.310; and

(iv) Snowmobiles as defined in RCW 46.04.546.

(c) "Value of the motor vehicle" means the fair market value of the motor vehicle plus the value of trade-in property of like kind.

Effective date—2026 c 255 ss 101, 102, 201, 202, 203, 301, and 302: See note following RCW 82.08.020.

Intent—2026 c 255: See note following RCW 82.08.020.

Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 417 ss 203, 204, 207, and 208: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to sections 203, 204, 207, and 208 of this act." [ 2025 c 417 s 206.]

Effective date—2025 c 417 ss 104, 105, 107-110, 201-206, 301-303, 604, and 903: See note following RCW 46.17.355.

Findings—Intent—2025 c 417: See note following RCW 82.38.030.