Vehicles for rental/tax

AN ACT Relating to the application of taxes to sales of motor 1
vehicles for use in retail car rentals; amending RCW 82.08.020; and 2
creating new sections. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.08.020 and 2022 c 16 s 145 are each amended to 5
read as follows: 6
(1) There is levied and collected a tax equal to six and five-7
tenths percent of the selling price on each retail sale in this state 8
of: 9
(a) Tangible personal property, unless the sale is specifically 10
excluded from the RCW 82.04.050 definition of retail sale;11
(b) Digital goods, digital codes, and digital automated services, 12
if the sale is included within the RCW 82.04.050 definition of retail 13
sale, except as provided in subsection (8) of this section;14
(c) Services, other than digital automated services, included 15
within the RCW 82.04.050 definition of retail sale;16
(d) Extended warranties to consumers; and 17
(e) Anything else, the sale of which is included within the RCW 18
82.04.050 definition of retail sale. 19
(2) There is levied and collected an additional tax on each 20
retail car rental, regardless of whether the vehicle is licensed in 21
H-1380.1
HOUSE BILL 1986
State of Washington 69th Legislature 2025 Regular Session
By Representatives Street, Scott, Macri, Reed, Pollet, and Ramel
Read first time 02/17/25. Referred to Committee on Finance.
p. 1 HB 1986
this state, equal to five and nine-tenths percent of the selling 1
price. The revenue collected under this subsection must be deposited 2
in the multimodal transportation account created in RCW 47.66.070.3
(3) Beginning July 1, 2003, there is levied and collected an 4
additional tax of three-tenths of one percent of the selling price on 5
each retail sale of a motor vehicle in this state, other than retail 6
car rentals taxed under subsection (2) of this section. The revenue 7
collected under this subsection must be deposited in the multimodal 8
transportation account created in RCW 47.66.070. 9
(4) For purposes of subsection (3) of this section, "motor 10
vehicle" has the meaning provided in RCW 46.04.320, but does not 11
include: 12
(a) Farm tractors or farm vehicles as defined in RCW 46.04.180 13
and 46.04.181, unless the farm tractor or farm vehicle is for use in 14
the production of cannabis; 15
(b) Off-road vehicles as defined in RCW 46.04.365;16
(c) Nonhighway vehicles as defined in RCW 46.09.310; and17
(d) Snowmobiles as defined in RCW 46.04.546. 18
(5) Beginning on December 8, 2005, 0.16 percent of the taxes 19
collected under subsection (1) of this section must be dedicated to 20
funding comprehensive performance audits required under RCW 21
43.09.470. The revenue identified in this subsection must be 22
deposited in the performance audits of government account created in 23
RCW 43.09.475. 24
(6) The taxes imposed under this chapter apply to successive 25
retail sales of the same property. 26
(7) The rates provided in this section apply to taxes imposed 27
under chapter 82.12 RCW as provided in RCW 82.12.020.28
(8) Notwithstanding the exclusion of purchases for the purpose of 29
resale in the definition of retail sale in RCW 82.04.050, taxes 30
imposed by this chapter apply to the sale of a motor vehicle to a 31
person who purchases the motor vehicle solely for use in retail car 32
rentals.33
NEW SECTION. Sec. 2. This act supersedes, preempts, and 34
invalidates any state regulation, including WAC 458-20-180 (11), to 35
the extent that it conflicts with this act. 36
p. 2 HB 1986
NEW SECTION. Sec. 3. This act applies to sales of motor 1
vehicles for use in retail car rentals occurring on or after October 2
1, 2025.3
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p. 3 HB 1986