WAC 177

Out of State Affidavits

Vehicle trip permits -- Restrictions and requirements -- Fees and taxes -- Penalty -- Rules.

Tax on Retailers

Exemptions--Sales of motor vehicles, trailers, or campers to nonresidents for use outside the state.

Exemptions -- Sales of machinery and implements, and related parts and labor, for farming to nonresidents for use outside the state.

Exemptions -- Sales for use in states, territories, and possessions of the United States which are not contiguous to any other state.

Exemptions--Sales to nonresidents of tangible personal property for use outside the state--Proof of nonresident status--Penalties.

Use Tax imposed.

Deficient tax or penalty payments--Notice--Interest--Limitations.

Late payment--Disregard of written instructions--Evasion--Penalties.

Sales of motor vehicles and trailers to nonresidents.

Sales of motor vehicles, campers, and trailers to nonresident consumers.

Sales of Motor Vehicles, Campers, and Trailers to Nonresident Consumers The Department is amending Rule 177 to remove the requirement for sellers to obtain a corporate nonresident permit number and the obligation that buyers obtain such a permit. New verbiage has been added covering purchases by nonresident corporations separate from the natural person verbiage. The references to chapter 46.16 RCW have been updated to chapter 46.16A RCW. Additional updating and removal of outdated language has been done.

AUTOMOBILE SALES ARRANGED BY OUT-OF-STATE FIRM BUT CONSUMMATED THROUGH IN-STATE DEALER. The information contained in this document is narrow in scope and of limited value. Cancelled effective June 29, 2007. This document erroneously explains that an out-of-state business must be registered with the Department in order to provide a resale certificate. WAC 458-20-102(9) explains that a seller may take a resale certificate from an unregistered nonresident buyer.

SALES OF VEHICLES TO NON-RESIDENT SERVICEMEN STATIONED IN THIS STATE This document does not provide any information that is not currently included in WAC 458-20-177 (Sales of motor vehicles, campers, and trailers to nonresidents). Cancelled by ETA 2003 -0 6/30/99.

Retail sales and use tax: Servicemembers' Civil Relief Act

RETAIL SALES AND USE TAX: SOLDIERS' AND SAILORS' CIVIL RELIEF ACT Revised 2/2/09 See ETA 3141.2009

Vehicles and Parts Sales to Nonresidents

Vehicle Sales Tax and Use Tax Requirements for Persons in the Military Services

Sales of Automotive Adaptive Equipment to Disabled Veterans

Sales of Auto parts to Nonresidents and Annual Notification for Repair Facilities

RETAILING TAX; RETAIL SALES TAX; INTERSTATE DEDUCTIONS; SALES TO NONRESIDENTS; NONRESIDENT STUDENT; AFTER ACQUIRED DOCUMENTATION; WAC 308-99-040. Taxpayer not permitted to present after-acquired documentation to prove sales were exempt. In absence of resident where delivery occurs in Washington affidavits and certificates required by Rule 177 to be taken at time of delivery, exemptions disallowed. See BTA 85-183 or 7 WTD 205.

RETAIL SALES TAX -- EXEMPTION -- SALES TO WASHINGTON CORPORATIONS FOR USE OUTSIDE THIS STATE. A corporation with places of business in and out of this state may be considered a "nonresident" for purposes of RCW 82.08.0264 and WAC 458-20-177.

RETAIL SALES TAX -- SALES TO MILITARY PERSONNEL COVERED UNDER UNITED STATES TREATY WITH NATO MEMBER NATIONS. A military officer based in Washington by a nation which is a party to NATO treaty TIAS 2846 "Status of Forces" is entitled to purchase a motor vehicle exempt of sales tax under the treaty's language mandating that the officer does not lose nonresidency status during the term of service.

RETAIL SALES TAX -- NONRESIDENT MILITARY MEMBER STATIONED IN WASHINGTON -- WASHINGTON VEHICLE PURCHASE. RCW 82.08.0264(2) allows nonresidents to purchase a motor vehicle, trailer, or camper for use outside this state without payment of retail sales tax, but only if three requirements are satisfied: the motor vehicle, trailer, or camper will be registered immediately under the laws of the state of the purchaser's residence; it will not be used here more than three months; and it will not be required to be registered and licensed under the laws of this state.

USE TAX -- EXEMPTION FOR PRIVATE MOTOR VEHICLES ACQUIRED IN ANOTHER STATE. A person who leased a private motor vehicle for more than two years in another state where he was a bona fide resident and then, while still a resident of the other state, exercised his right under the lease agreement to purchase that vehicle qualifies for the use tax exemption even if he purchased the vehicle less than 90 days prior to becoming a Washington resident.

RETAIL SALES TAX -- RETAILING B&O TAX -- SALES FOR RESALE --INTERVENING USE --OWNERS CONSUMPTION OF INVENTORY. The consumption by the taxpayers owner of products that were purchased for resale results in the taxpayer being liable for retail sales tax on the purchases. However, because the products are not sold by the taxpayer, no B&O tax is due on such amounts.

MVET -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF MOTOR HOME -- LICENSED IN OREGON -- USED IN WASHINGTON. When a Washington resident who is a co-owner of a motor home that is registered in another state uses the vehicle in Washington, the Washington resident must register the vehicle in Washington and pay the MVET.

TRIP PERMITS -- ALTERNATIVE TO MVET -- MOTOR HOME -- WASHINGTON RESIDENT. When a motor home is co-owned by a Washington resident and a resident of another state and is licensed in the other state, the Washington co-owner may not operate the vehicle in Washington under trip permits in lieu of licensing it in Washington and paying the MVET.

USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- USED IN WASHINGTON. Where there are dual residency owners (Oregon and Washington), any use of the motor home by either joint owner within this state constitutes a taxable incident. The use tax is imposed on the use in this state as a consumer of any article of tangible personal property.

MOTOR VEHICLE EXCISE TAX (MVET) -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF MOTOR HOME -- LICENSED IN OREGON -- USED IN WASHINGTON. Where a motor home is jointly owned by a Washington resident and a nonresident and the motor home is used by both owners in Washington, the owners must register the motor home in Washington and pay the MVET.

RETAIL SALES TAX -- NON-RESIDENT BUYERS -- MOTOR VEHICLE DEALERS. Motor vehicle dealers must adequately complete non-resident certificates and identify the buyer as a non-resident, otherwise the retail sales tax must be collected.

MOTOR VEHICLE EXCISE TAX (MVET) -- NONRESIDENT -- JOINT OWNERS (WASHINGTON AND IDAHO).

MOTOR VEHICLE EXCISE TAX (MVET) -- EXEMPTION -- RESIDENT -- HOME OR DWELLING. Whether a person is a resident of this state is fact specific. When a person has homes in Washington and another state, the amount of time the person spends in Washington is only one factor to be considered in determining whether the person has manifested an intent to live or be located in this state on more than a temporary or transient basis.

RETAIL SALES TAX AUTOMOTIVE SALES OUT-OF-STATE. Car dealers must document both that vehicles were sold to nonresidents and how the vehicles left the state to qualify for the sales tax exemption.

USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- USED IN WASHINGTON. Where a Washington resident and an Oregon resident jointly owned a motor home licensed in both owners names in Oregon, the Washington residents use of the motor home in Washington gave rise to the imposition of use tax.

USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- CLAIM THAT CO-SIGNED FOR FINANCING PURPOSES ONLY -- SUFFICIENCY OF EVIDENCE. A Washington residents claim that he is listed as a joint owner of a motor home on purchase documents and the Oregon title and registration solely for financing purposes, is not established by the mere fact the monthly payments on the vehicle were made only from the bank account of the Oregon joint owner, when other evidence of ownership contradicts the Washington residents explanation.

AUTO DEALERS NON-RESIDENT PURCHASERS SUBSTANTIAL COMPLIANCE IDENTIFICATION. An auto dealer acts in good faith and substantially complies with the requirements in RCW 82.08.0264 and Rule 177 when the auto dealer examines the customers drivers license to determine a customers state of residence.

AUTO DEALERS NON-RESIDENT PURCHASERS GOOD FAITH IDENTIFICATION MEMBERS OF THE MILITARY. An auto dealer does not substantially comply with the requirements in RCW 82.08.0264 and Rule 177 when the auto dealer examines the customers drivers license to determine a customers state of residence and the drivers license, although issued by a state other than Washington, bears a Washington address and the auto dealer does not examine any other identification of the customer.

MVET -- USE TAX -- PURCHASE BY RESIDENT OUTSIDE STATE -- PRESUMPTION OF INTENTION TO USE IN STATE. When a Washington resident purchases a motor vehicle outside this state, a presumption is raised, for both use tax and MVET, that the resident intends to use the vehicle in this state. When the facts support presumptive use in this state, the burden is on the resident-taxpayer to prove that he or she has not had possession of or used the vehicle in this state.

USE TAX DUAL RESIDENCY. Taxpayer who owns a home, operates a business, and has utility and telephone service in Washington has established substantial connections to Washington and evidence establishes an intent to be located in Washington, on more than a temporary or transitory basis. Taxpayer may be a resident of more than one state for use tax and motor vehicle excise tax (MVET) purposes.

MOTOR VEHICLE EXCISE TAX (MVET)-TRIP PERMITS. A dual resident (a resident of Washington and another state) may not operate a vehicle registered in the other state on Washington highways under the authority of a trip permit. A Washington resident must register a vehicle operated on Washington highways.

USE TAX DUAL RESIDENT -- USE OF VEHICLE REGISTERED OUTSIDE OF WASHINGTON. Taxpayer is not entitled to non-resident exemption for vehicles used in Washington when Taxpayer is a Washington resident. Vehicles used only to travel from Washington home to border are subject to use tax.

USE TAX NON-RESIDENT EXEMPTION. Former Washington resident, who purchased a motor vehicle in Washington after his move to Idaho, was not liable for use tax where evidence showed only limited use in Washington and residency in Idaho was confirmed.

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.

USE TAX -- RESIDENCE. For the use tax exemption articulated in RCW 82.12.0251 to be available: (1) a vehicle owner must be a nonresident, (2) the vehicle must be registered or licensed in the state of the user's residence, and (3) Washington registration of the vehicle must not be required.

MVET -- RESIDENCE. A person is exempt from MVET if the person is a nonresident of Washington, has properly licensed the vehicle in his or her home state, is not employed in this state, and does not operate the vehicle in this state for more than six months in any continuous twelve-month period.

USE TAX EXEMPTION FOR PRIVATE AUTOMOBILES AND HOUSEHOLD GOODS. A motor home is not a private automobile or a household good for purposes of the use tax exemption for persons who move to the state.

RETAIL SALES TAX -- MOTOR VEHICLE SALES TO NONRESIDENTS -- EXEMPTION -- DOCUMENTATION. To be exempt from the collection of retail sales tax on the sale of a motor vehicle, trailer, or camper to an out-of-state resident where delivery occurs in Washington a dealer must collect an affidavit's) at the time of sale to include a trip permit or out-of-state license plate number.

RETAIL SALES TAX -- MOTOR VEHICLE SALES TO NON-RESIDENTS -- EXEMPTION -- DOCUMENTATION. Where motor vehicles are delivered outside this state, the retail sales tax exemption will be allowed even though the Rule 177 affidavits are acquired after the sale where the affidavits are complete and there is other corroborating evidence of the buyer's out-of-state residence.

USE TAX--EXEMPTION--NONRESIDENCY--BURDEN OF PROOF. Persons claiming a statutory exemption of use tax which requires nonresidency in this state as a critical criteria have the burden to establish that they are not resident here and are resident elsewhere.

MOTOR VEHICLE -- REGISTRATION -- USE TAX--NON RESIDENT -- EMPLOYMENT -- PART-TIME RESIDENT. Persons who are employed in this state and who regularly stay in this state at residential property owned by them here, and who cannot establish residency in any other state are not "nonresidents" of this state for purposes of vehicle registration exemption.

RETAIL SALES TAX -- EXEMPTION -- AUTO SALES -- OUT-OF-STATE RESIDENCY -- DATE ESTABLISHED. Sales by auto dealers to out-of-state residents are exempt of sales tax even if delivered in Washington if certain requirements are met. Exemption not allowed for sale to person apparently moving to Alaska because at time of sale buyer had not proved he had abandoned his Washington residence. Exemption denied person allegedly moving to New York for same reason. This sales tax exemption is only available to non-residents.

RETAIL SALES TAX -- EXEMPTION -- NONRESIDENT. Washington residents may not purchase vehicles in this state without paying retail sales tax because they intend to reside in another state; such an intent does not make one a "nonresident" for purposes of RCW 82.08.0264.

USE TAX DEFERRED SALES TAX --VALUE GIFT CELLULAR PHONES: Use tax on cellular phones given away to promote cellular service commissions is measured by the donors arms length purchase price of the phones.

USE TAX -- MVET -- NONRESIDENT EXEMPTION -- MOTOR HOME -- PARTNERSHIP BURDEN OF PROOF. Use tax and MVET was found due on a motor home where Taxpayer failed to establish that the motor home was owned by an out-of-state partnership, that the commercial domicile of the alleged partnership was out-of-state, and that the partnership actually existed.

COMMUNITY PROPERTY; TAX LIABILITY. In order to sustain the use tax assessment, we need only to find one of the taxpayers in a marital community was a Washington resident. The Department has consistently held that a tax liability imposed on one joint owner of a vehicle who is a Washington resident can be imposed upon the other who is not a resident. The debt for use tax is a debt of the marital community, composed of the taxpayer and his wife.

USE TAX NONRESIDENT EXEMPTION. To qualify for the nonresident use tax exemption, a taxpayer must prove he is (1) a nonresident of this state; (2) the vehicles were licensed in the state where he was a resident; and (3) the vehicles were not required to be licensed in Washington.

RETAIL SALES TAX EXEMPTION SALES OF MOTOR VEHICLES TO NON-RESIDENTS FOR USE OUTSIDE THIS STATE. Sales of motor vehicles do not qualify for the retail sales tax exemption if the dealer/taxpayer does not exercise a reasonable degree of prudence in accepting a buyers statement of non-residency in an affidavit.

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.

Petition concerning unpaid retail sales tax on the Washington purchase of a motor home by Washington residents, and the penalties and interest assessed thereon.

RETAIL SALES TAX TAX EXEMPTIONS -- INDIANS AUTOMOBILE PURCHASES DELIVERY OUTSIDE INDIAN COUNTRY. When an enrolled member of an Indian tribe takes delivery/possession of an automobile outside of the enrolled members Indian tribal lands, the sale is not exempt from retail sales tax.

RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NONRESIDENCY DUAL RESIDENT. Nothing in the taxing statutes suggests that the Legislature intended to treat dual residency citizens different than single residency citizens.

RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY GOOD FAITH RELIANCE. When a seller receives information contrary to a buyers assertion that he is a nonresident, the seller may no longer in good faith rely on the buyers claim.

RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY BURDEN OF PROOF. Persons seeking the benefit of a tax exemption bear the burden of proving they are qualified for the exemption.

RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE - NON-RESIDENCY EVIDENCE AVAILABLE TO DEALERSHIP. Evidence that a buyer had a current Washington drivers license justified seller's conclusion that Taxpayer was not an exempt Washington nonresident.

RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY EVIDENCE. By renewing his Washington drivers license, and thus declaring himself to be a Washington resident on the very day he signed the purchase agreement for his automobile, Taxpayer effectively contradicted the very testimony and documentary evidence he now offers to prove he was a nonresident. The cumulative evidence, at best, suggests Taxpayer may have been a dual resident of both states.

USE TAX -- NONRESIDENT MILITARY -- PERMANENT ASSIGNMENT TO WASHINGTON MILITARY BASE. A military officers use of his motor home purchased and used in Washington while he was on permanent assignment to a Washington military base was held to be subject to use tax even though he was a legal resident of Oregon.

RETAIL SALES TAX EXEMPTION SALES OF MOTOR VEHICLES TO NONRESIDENTS FOR USE OUTSIDE THE STATE PROOF REQUIRED. To qualify for the exemption for sales of motor vehicles to nonresidents for use outside the state, a motor vehicle dealer must obtain a signed affidavit from the nonresident purchaser and must certify that the vehicle left the dealers premises under the authority of a trip permit or under the authority of valid license plates issued to that vehicle by the state of the purchasers residence.

RETAIL SALES TAX EXEMPTION SALES TO RESIDENTS OF STATES THAT IMPOSE SALES TAX OF LESS THAN 3%. BURDEN OF PROOF. The exemption for sales to residents of states that impose sales tax of less than 3% is limited to purchasers who are bona fide residences of one of the states, possessions, or Provinces of Canada listed in ETA 2014. Where the evidence is conflicting as to whether the purchaser is a resident of a qualifying state, possession, or Province, the exemption must be denied.

RULE 177; RCW 82.08.0264: RETAIL SALES TAX – EXEMPTION – SALES OF MOTOR VEHICLES TO NONRESIDENTS FOR USE OUTSIDE THE STATE – PROOF REQUIRED. To qualify for the exemption for sales of motor vehicles to nonresidents for use outside the state, a motor vehicle dealer must obtain a signed affidavit from the nonresident purchaser and must certify that the vehicle left the dealer’s premises under the authority of a trip permit or under the authority of valid license plates issued to that vehicle by the state of the purchaser’s residence.

Retail Sales Tax -- Exemption -- Vehicles -- Sales to Nonresidents. The terms of WAC 458-20-177 were substantially complied with, and a taxpayer seller of vehicles to nonresidents was entitled to exemption from retail sales tax, where the taxpayer showed that the vehicles were licensed under the laws of the state of the purchaser's residence, and the out-of-state registration and licensing occurred within a reasonable short period after the vehicles were shipped from Washington.

Retail Sales Tax -- Exemption -- Vehicles Sold to Nonresidents. To claim an exemption from sales tax on a vehicle under RCW 82.04.0264(2), the taxpayer must show that the vehicle: (1) will be registered and licensed immediately under the laws of the state of the purchaser's residence; (2) will not be used in Washington for more than three months; and (3) will not be required to be registered and licensed under the laws of Washington.

Retail Sales Tax -- Exemption -- Vehicles -- Sales to Nonresidents. The requirements for exemption from retail sales tax for sales of vehicles to non residents under WAC 458-20-177(1) were not met, where vehicles were transported to their out-of-state destinations by truck freight with neither a trip permit nor out-of-state license plates.

Retail Sales Tax -- Exemption -- Nonresidents -- Component Parts -- Vehicles. ORS 82.08.0265 creates an exemption from sales tax for sales to nonresidents for use outside of Washington of tangible personal property that becomes a component part of any personal property belonging to a nonresident when the property is shipped or delivered out of state. RCW 82.08.0265 did not apply to vehicles shipped out of state that did not become a component part of property owned by a nonresident.

Retail Sales Tax -- Exemption -- Nonresident Status of Taxpayer. For purposes of WAC 458-20-177 exempting sales of vehicles to nonresidents from retail sales tax, a taxpayer is considered a nonresident where it has places of business in both Washington and one or more other states.

RETAIL SALES TAX -- SALE TO NON-RESIDENT FOR USE OUTSIDE THE STATE -- MOTOR VEHICLE -- OUTBOARD MOTOR. The retail sales tax exemption available to nonresidents under RCW 82.08.0264 and Rule 177 is strictly limited to the purchase of motor vehicles, trailers, or campers for use outside of this state. Because an outboard motor is not a motor vehicle, trailer, or camper, the exemption under RCW 82.08.0264 and Rule 177 is not applicable.