Vehicle sales tax/tribes

AN ACT Relating to providing a sales and use tax exemption for a 1
motor vehicle sold to a tribe or tribal member; amending RCW 2
82.08.0317; adding a new section to chapter 82.12 RCW; creating a new 3
section; providing an effective date; and providing expiration dates.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 82.08.0317 and 2016 c 232 s 1 are each amended to 6
read as follows: 7
(1)(a) State sales tax is not imposed on the sale of a motor 8
vehicle((: (i) If delivered to a tribe or tribal member in their 9
Indian country, or (ii) if the sale is made to a tribe or tribal 10
member in their Indian country )) if the sale is made to a tribe or 11
tribal member . A tribal member is not required to reside in Indian 12
country for the exemption under this section to apply. However, the 13
tribal member must have tax exempt status as a member of the tribe 14
((upon whose Indian country delivery is made)). 15
(b) In order to substantiate the tax exempt status of a tribal 16
member, the seller must require presentation of one of the following:17
(i) The buyer's tribal membership or citizenship card from a 18
tribe; 19
(ii) The buyer's certificate of ((tribal)) enrollment with a 20
tribe; or 21
H-0299.1
HOUSE BILL 1525
State of Washington 69th Legislature 2025 Regular Session
By Representatives Walen, Stearns, Parshley, Shavers, Pollet, Scott,
and Waters
Read first time 01/23/25. Referred to Committee on Finance.
p. 1 HB 1525
(iii) A letter signed by ((a tribal )) an official of a tribe 1
confirming the buyer's tribal membership status. 2
(((c)(i) To establish delivery for purposes of this section, the 3
motor vehicle must be delivered to the tribe or tribal member in 4
their Indian country. The seller must document the delivery by 5
completing a declaration, which must be signed by the seller and the 6
buyer. The declaration must be limited to attestation regarding the 7
location of delivery and the enrollment status of the tribal member. 8
The department may develop a form for the declaration.9
(ii) No other proof of delivery may be accepted in place of or 10
required in addition to the requirements in (c)(i) of this 11
subsection.12
(2) If the sale is made to the tribe or tribal member in their 13
Indian country, the requirements in subsection (1)(c) of this section 14
do not apply.15
(3))) (2) The seller must retain copies of the documentation 16
required under subsection (1) of this section for the period required 17
in RCW 82.32.070. 18
(((4))) (3) Nothing in this section may be construed to affect, 19
amend, or modify federal law or Washington state tax law as applied 20
to a tribal member or tribe. 21
(((5))) (4) The definitions in this subsection apply throughout 22
this section unless the context clearly requires otherwise.23
(a) "Indian country" has the same meaning as provided in 18 24
U.S.C. Sec. 1151. 25
(b) "Tribe" means a federally recognized tribe.26
(c) "Tribal member" means an enrolled member of a federally 27
recognized tribe. 28
NEW SECTION. Sec. 2. A new section is added to chapter 82.12 29
RCW to read as follows: 30
(1) The provisions of this chapter do not apply with respect to 31
the use of a motor vehicle that is sold to a tribe or tribal member.32
(2) All the eligibility requirements, conditions, limitations, 33
and definitions in RCW 82.08.0317 apply to this section.34
(3) This section expires January 1, 2037. 35
NEW SECTION. Sec. 3. (1) This section is the tax preference 36
performance statement for the tax preferences contained in sections 1 37
and 2, chapter . . ., Laws of 2025 (sections 1 and 2 of this act). 38
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This performance statement is only intended to be used for subsequent 1
evaluation of the tax preference. It is not intended to create a 2
private right of action by any party or to be used to determine 3
eligibility for preferential tax treatment. 4
(2) The legislature categorizes these tax preferences as ones 5
intended to provide tax relief for certain businesses or individuals, 6
as indicated in RCW 82.32.808(2)(e). 7
(3) It is the legislature's specific public policy objective to 8
promote the efficacy of the sales and use tax preference provided to 9
tribal members when purchasing vehicles in Washington.10
(4) If the review finds that annual sales of vehicles to tribal 11
members has increased by at least 20 percent by 2034 over calendar 12
year 2025, then the legislature intends to extend the expiration date 13
of this tax preference. 14
(5) In order to obtain the data necessary to perform the review 15
in subsection (4) of this section, the joint legislative audit and 16
review committee may refer to any data collected by the state.17
NEW SECTION. Sec. 4. This act takes effect January 1, 2026.18
NEW SECTION. Sec. 5. Section 1 of this act expires January 1, 19
2037.20
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p. 3 HB 1525