Wholesale auto auctions

From the 2024 DOR Tax Exemption Study

82.04.317; 82.04.422(1) - Wholesale auto auctions Description Motor vehicle manufacturers, their financing subsidiaries (that must be at least 50% owned by the manufacturer), and licensed vehicle dealers are exempt from wholesaling B&O tax on their wholesale sales of motor vehicles if the sales take place at a wholesale auto auction and the purchaser is licensed vehicle dealer. Purpose To encourage out-of-state auto manufacturers to sell their rental and lease return vehicles and other surplus vehicles at wholesale auctions conducted in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.245 $4.385 $4.464 $4.432 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $4.019 $4.464 $4.432 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the auto sales growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Depart