Alternative Fuel Vehicle (AFV) Tax Exemption

New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from state motor vehicle sales and use taxes. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity; meet the California motor vehicle emissions standards; and comply with the rules of the Washington Department of Ecology. This exemption also applies to qualified used vehicles that are modified with a U.S. Environmental Protection Agency-certified aftermarket conversion, as long as the vehicle is being sold for the first time after modification. The converted vehicle must be part of a fleet of at least five vehicles owned by the same person and have an odometer reading of less than 30,000 miles. This sales tax exemption expires July 1, 2015. The use tax exemption is not available for vehicles purchased after July 1, 2015. A vehicle purchased or converted before July 1, 2015, is exempt from the use tax until it is retired or changes hands. (Reference Revised Code of Washington 82.08.809 and 82.12.809)

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