WAC 132

Use Tax on Vehicles Donated for Use Under RCW 46.16.048Repealed 6/30/2000 - WAC 458-20-132 (Automobile dealers/demonstrator and executive vehicles) currently explains the tax-reporting requirements for service trucks and loaned vehicles used by car dealers.

Use Tax Value on Loaned VehiclesRepealed 6/30/2000 - WAC 458-20-132 (Automobile dealers/demonstrator and executive vehicles) currently explains the tax-reporting requirements for service trucks and loaned vehicles used by car dealers.

Auto Dealers Guide

Tax on retailers.

Tax imposed--Retail sales--Retail car rental.

Use tax imposed.

Sales and use taxes authorized--Additional taxes authorized--Maximum rates.

Automobile dealers/demonstrator and executive vehicles.Effective 3/20/92

E2SB 5688 (chapter 521, Laws of 2009) requires agencies to "amend their rules to reflect the intent of the legislature to ensure that all privileges, immunities, rights, benefits, or responsibilities granted or imposed by statute to an individual because that individual is or was a spouse in a marital relationship are granted or imposed on equivalent terms to an individual because that individual is or was in a state registered domestic partnership." These following rules have been amended for the sole purpose of implementing E2SB 5688:

Clean Alternative Fuel and High Mileage Hybrid Vehicles - Sales and Use Tax Changes

Consumer Assistance to Recycle & Save Act of 2009 - Federal Rebate Program

Tax Changes Relating to Vehicle Dealers

Vehicle Sales Tax and Use Tax Requirements for Persons in the Military Services--Revision of Special Notice Issued 2/28/95

Consumer Assistance to Recycle & Save Act of 2009 - Federal Rebate Program

Return of New Vehicles Under Customer Satisfaction Programs

Sales of Automotive Adaptive Equipment to Disabled Veterans

New Clean Alternative Fuel Vehicles and Plug-In Hybrids Sales/Use Tax Exemptions

Tax credits related to clean alternative fuel commercial vehicles

Auto Repair Businesses - State Requirements

New Sales and Use Tax Exemptions for Certain High Mileage Hybrid and Clean Alternative Fuel Vehicles

Electric Vehicle Infrastructure Tax Exemptions

Motor Vehicle Sales and Use Tax Rate Increase

Sales of Auto Parts to Nonresidents and Annual Notification of Repair Facilities

Clean Alternative Fuel and High Mileage Hybrid Vehicles - Sales and Use Tax Changes

New Clean Alternative Fuel Vehicles and Plug-In Hybrids Sales/Use Tax Exemptions

Qualifying Tax Exempt Hybrid/Alternative Fuel Vehicles

Electric Vehicle Infrastructure Tax Exemptions

New Clean Alternative Fuel Vehicles and Plug-In Hybrids Sales/Use Tax Exemptions

Tax credits related to clean alternative fuel commercial vehicles

Supplement to Special Notice: Qualifying tax exempt hybrid/alternative fuel vehicles list as of February 20, 2009

Rentals of Motorized Recreational Vehicles (RVs) and Motor Homes

Consumer Assistance to Recycle & Save Act of 2009 - Federal Rebate Program

New Sales and Use Tax Exemptions for Clean Alternative Fuel and High Gas Mileage Vehicles

Return of New Vehicles Under Customer Satisfaction Programs

Electric Vehicle Infrastructure Tax Exemptions

New Sales and Use Tax Exemptions for Clean Alternative Fuel and High Gas Mileage Vehicles

USE TAX -- DISPLAY MODELS -- ETB 332.12.178.Motorcycle dealers are not subject to use tax on the value of models which are used for display and test drives in the same manner as those used by automobile dealers.The nature of the activity, the sale to consumers of passenger vehicles, is the same and must be accorded the same treatment as that granted to automobile dealers.

USE TAX -- AUTOMOBILES -- EXECUTIVE CARS -- FROM STOCK.Capitalized company cars used by employees which were not "from stock" of the company, or of the type which the company normally sold, do not qualify as "executive cars" for purposes of Rule 132.

USE TAX -- AUTOMOBILES -- DEMONSTRATOR USAGE -- MANUFACTURER OR DISTRIBUTOR -- ONE PER ONE HUNDRED RULE.The "one per one hundred" rule for computing demonstrator usage applies only to retail automobile dealerships.Manufacturers or distributors who primarily make wholesale automobile sales are governed by ETB 37.12.132.Their demonstrator usage is based on the first complement of cars for each model year and on any increases above the number of cars in the first complement.Accord:ETB 37.12.132

MOTOR VEHICLE EXCISE TAX (MVET) - FOREIGN CORPORATION -- VEHICLE -- CORPORATE OFFICER USE -- WASHINGTON BRANCH OFFICE -- VEHICLE LICENSED IN IDAHO -- USE IN WASHINGTON.Where a company car is operated by the Washington branch office of a corporation, the owners must register the vehicle in Washington and pay MVET.

EVASION PENALTY -USE TAX AND MVET ON MOTORHOME.Where the taxpayer improperly used his dealer plate and failed to properly title and register the motor home, but these actions were not undertaken in an intentional effort to deliberately avoid the payment of the tax due, the evasion penalty does not apply.The taxpayer explained that the sale of the motor home was complicated by his health difficulties, which impacted his ability to run his business, in conjunction with a lack of familiarity with the requirements of acting as a wholesale dealer and the extremely limited market demand for the t

WHOLESALING B&O TAX - ACCOMMODATION SALE: AUTOMOBILE DEALER.Failure of an initiating automobile dealer of an accommodation sale to meet the requirement of keeping in its records a bona fide existing order of a customer prevents the dealer/taxpayer from deducting wholesaling B&O tax for that sale from its gross income.

USE TAX - DOMINION AND CONTROL -- MOTOR VEHICLE - OWNERSHIP.Use tax was properly imposed on Washington residents, who were co-owners of a motor home licensed in the State of Oregon, when they assumed dominion and control over the motor home by using it to transport the taxpayers' property in Washington, even though they were not driving the vehicle at the time of its use in Washington.

RETAIL SALES TAX -- USE TAX -- EXEMPTION -- SOLDIERS' AND SAILORS' CIVIL RELIEF ACT.Each monthly lease payment represents a separate taxable transaction for retail sales or use tax purposes.Section 514 of the Soldiers' and Sailors' Civil Relief Act, 50 U.S.C. § 514, does not prohibit the state from collecting from nonresident members of the armed forces retail sales or use tax on motor vehicle lease transactions.

USE TAX -- EXEMPTION -- NONRESIDENT.Whether a person is a resident of this state for use tax purposes is fact specific.The Department will consider factors bearing on the person's intent to live or be located in Washington on more than a temporary or transient basis.

USE TAX -- EXEMPTION -- NONRESIDENT -- MOTOR VEHICLE.To qualify for the use tax exemption for the use by a nonresident of a motor vehicle or trailer, a person must prove: (1) he or she was a "nonresident" of this state; (2) the vehicle was registered or licensed under the laws of the state of his or her residence; and (3) the vehicle was not required to be registered or licensed under the laws of Washington.

USE TAX - PIERCING CORPORATE VEIL - NOMINEES OR "DBAS."A taxpayer that conducts business through other entities and expressly represents those entities as being his nominees or "dbas" is liable for tax on transactions engaged in by his nominees or "dbas."

USE TAX - REPOSSESSION - SATISFACTION OF DEBT.In contrast to a secured creditor that repossesses motor vehicles, the voluntary transfer of motor vehicles to an unsecured creditor in satisfaction of a debt constitutes a transfer of ownership for valuable consideration.

RETAIL SALES TAX -- INDIANS -- ENROLLED MEMBERS -- TRIBAL LAND -- DELIVERY.The "sale to Indians" retail sales tax exemption applies only to enrolled members of the tribe that owns the tribal lands where the sale or taxable activity is taking place.Vehicles delivered to nonmembers of that tribe are subject to tax.

WAC 458-20-132; RCW 82.12.020: USE TAX - AUTOMOBILES - EXECUTIVE USE - Where a used car dealer does not keep a current model vehicle registered in the user’s name use tax is due on the personal use calculated under the provisions detailed in the rule.

WAC 458-20-132; RCW 82.12.020: USE TAX - AUTOMOBILES - EXECUTIVE USE - Licensing an older vehicle will not meet the requirements of Rule 132 and use tax on personal use of dealerships vehicles still applies.

USE AND/OR DEFERRED SALES TAX -- -- COMPUTATION OF USE TAX -- LOANER CARS -- VALUATION -- TRADE-IN.Use tax on "loaner cars" is to be computed in the same manner as with other full use service vehicles.First, the original set of "loaner cars" are subject to use tax on the full retail value.Second, when these original "loaner cars" are retired, a trade-in deduction is allowable against the use tax due on the new replacement "loaner cars."