Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption
New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state sales tax. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards effective January 1, 2005, and comply with the rules of the Washington Department of Ecology. In addition, all new passenger cars, light-duty trucks, and medium-duty passenger vehicles that utilize hybrid electric technology and have a U.S. Environmental Protection Agency estimated highway fuel economy of at least 40 miles per gallon are exempt from the 0.30% motor vehicle sales tax. These tax exemptions expire on January 1, 2011. (Reference House Bill 6170, 2009, and Revised Code of Washington 82.08.020 and 82.08.809)
