Vehicles acquired while in military service

From the 2024 DOR Tax Exemption Study

82.12.0266 - Vehicles acquired while in military service Description Vehicles and trailers acquired and used by Washington residents serving in the armed forces and stationed outside of Washington are exempt from use tax. Exemption does not cover persons called to active duty for training of less than six months or for vehicles acquired less than 30 days prior to discharge from the military. Purpose To support resident armed forces members and to create equity. Nonresidents who bring their vehicles into Washington and establish residency here are exempt from use tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $8.600 $8.810 $8.880 $8.750 Local Taxes $3.700 $3.790 $3.820 $3.760 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $8.080 $8.880 $8.750 Local Taxes $0.000 $3.470 $3.820 $3.760 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. -