Interstate commerce vehicles

From the 2024 DOR Tax Exemption Study

82.08.0263; 82.12.0254(2,3) - Interstate commerce vehicles Description The sale or use of motor vehicles and trailers used for transporting persons or property for hire in interstate and foreign commerce are exempt from sales and use taxes. The purchaser or user must hold a permit issued by the federal Department of Transportation. Use tax does not apply to a vehicle used by a nonresident when the vehicle is used: - Exclusively to transport property or persons across state boundaries. - Less than 15 consecutive days. Purpose To encourage sales in Washington by allowing delivery to occur in-state. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $13.087 $12.500 $12.551 $12.711 Local Taxes $5.886 $5.979 $6.004 $6.080 Repeal of Repealing this exemption would not increase revenues. Buyers could restructure to exemption take delivery out-of-state. In addition, taxing this property may violate the Commerce Clause. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions A challenge under federal commerce laws would likely occur if this