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WAC 177 Sales of motor vehicles, campers, and trailers to nonresident consumers.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-177   07/31/2005 Sales of motor vehicles, campers, and trailers to nonresident consumers.
    03/30/1983 Sales of motor vehicles and trailers to nonresidents.
         
       
RCW: 46.16.160   1975 Vehicle trip permits -- Restrictions and requirements -- Fees and taxes -- Penalty -- Rules.
  82.04.250   1993 Tax on Retailers
  82.08.0264   1980 Exemptions--Sales of motor vehicles, trailers, or campers to nonresidents for use outside the state.
  82.08.0268   1980 Exemptions -- Sales of machinery and implements, and related parts and labor, for farming to nonresidents for use outside the state.
  82.08.0269   1980 Exemptions -- Sales for use in states, territories, and possessions of the United States which are not contiguous to any other state.
  82.08.0273   1993 Exemptions--Sales to nonresidents of tangible personal property for use outside the state--Proof of nonresident status--Penalties.
  82.12.020   1983 Use Tax imposed.
  82.32.050   1997 Deficient tax or penalty payments--Notice--Interest--Limitations.
  82.32.090   1999 Late payment--Disregard of written instructions--Evasion--Penalties.
         
       
ETA: 3141.2009   2/2/09 Retail sales and use tax: Servicemembers' Civil Relief Act
  226.08.177   9/9/66 AUTOMOBILE SALES ARRANGED BY OUT-OF-STATE FIRM BUT CONSUMMATED THROUGH IN-STATE DEALER.  The information contained in this document is narrow in scope and of limited value. Cancelled effective June 29, 2007. This document erroneously explains that an out-of-state business must be registered with the Department in order to provide a resale certificate. WAC 458-20-102(9) explains that a seller may take a resale certificate from an unregistered nonresident buyer.
  231.08.177   9/16/66 SALES OF VEHICLES TO NON-RESIDENT SERVICEMEN STATIONED IN THIS STATE  This document does not provide any information that is not currently included in WAC 458-20-177 (Sales of motor vehicles, campers, and trailers to nonresidents).  Cancelled by ETA 2003 -0  6/30/99.
  361.08.12.177   6/5/70 RETAIL SALES AND USE TAX:  SOLDIERS' AND SAILORS' CIVIL RELIEF ACT Revised 2/2/09 See ETA 3141.2009
         
       
INDUSTRY GUIDES:      
         
         
SPECIAL NOTICES:      
Subject Title Reference:      
         
Military Sales     03/17/2003 Vehicle Sales Tax and Use Tax Requirements for Persons in the Military Services
Auto Repair Businesses/ Nonresidents     05/31/2007 Sales of Auto parts to Nonresidents and Annual Notification for Repair Facilities
Nonresidents/ Vehicles Sales     06/04/2007 Vehicles and Parts Sales to Nonresidents
         
     
DIRECTIVE: 8177.1   03/03/1986 Out of State Affidavits
         
       
RPM: None      
         
       
WTD: 1 WTD 75 86-229   RETAILING TAX; RETAIL SALES TAX; INTERSTATE DEDUCTIONS; SALES TO NONRESIDENTS; NONRESIDENT STUDENT; AFTER ACQUIRED DOCUMENTATION; WAC 308-99-040. Taxpayer not permitted to present after-acquired documentation to prove sales were exempt. In absence of resident where delivery occurs in Washington affidavits and certificates required by Rule 177 to be taken at time of delivery, exemptions disallowed. See BTA 85-183 or 7 WTD 205.
  2 WTD 163 87-23   RETAIL SALES TAX -- MOTOR VEHICLE SALES TO NONRESIDENTS -- EXEMPTION -- DOCUMENTATION. To be exempt from the collection of retail sales tax on the sale of a motor vehicle, trailer, or camper to an out-of-state resident where delivery occurs in Washington a dealer must collect an affidavit's) at the time of sale to include a trip permit or out-of-state license plate number.
  2 WTD 163 87-23   RETAIL SALES TAX -- MOTOR VEHICLE SALES TO NON-RESIDENTS -- EXEMPTION -- DOCUMENTATION. Where motor vehicles are delivered outside this state, the retail sales tax exemption will be allowed even though the Rule 177 affidavits are acquired after the sale where the affidavits are complete and there is other corroborating evidence of the buyer's out-of-state residence.
  2 WTD 331 87-67   RETAIL SALES TAX -- EXEMPTION -- AUTO SALES -- OUT-OF-STATE RESIDENCY -- DATE ESTABLISHED. Sales by auto dealers to out-of-state residents are exempt of sales tax even if delivered in Washington if certain requirements are met. Exemption not allowed for sale to person apparently moving to Alaska because at time of sale buyer had not proved he had abandoned his Washington residence. Exemption denied person allegedly moving to New York for same reason. This sales tax exemption is only available to non-residents.
  2 WTD 339 87-68   RETAIL SALES TAX -- EXEMPTION -- NONRESIDENT. Washington residents may not purchase vehicles in this state without paying retail sales tax because they intend to reside in another state; such an intent does not make one a "nonresident" for purposes of RCW 82.08.0264.
  2 WTD 253 86-172A   USE TAX--EXEMPTION--NONRESIDENCY--BURDEN OF PROOF. Persons claiming a statutory exemption of use tax which requires nonresidency in this state as a critical criteria have the burden to establish that they are not resident here and are resident elsewhere.
  2 WTD 253 86-172A   MOTOR VEHICLE -- REGISTRATION -- USE TAX--NON RESIDENT -- EMPLOYMENT -- PART-TIME RESIDENT. Persons who are employed in this state and who regularly stay in this state at residential property owned by them here, and who cannot establish residency in any other state are not "nonresidents" of this state for purposes of vehicle registration exemption.
  7 WTD 205 BTA 85-183   Retail Sales Tax -- Exemption -- Nonresidents -- Component Parts -- Vehicles. ORS 82.08.0265 creates an exemption from sales tax for sales to nonresidents for use outside of Washington of tangible personal property that becomes a component part of any personal property belonging to a nonresident when the property is shipped or delivered out of state. RCW 82.08.0265 did not apply to vehicles shipped out of state that did not become a component part of property owned by a nonresident.
  7 WTD 205 BTA 85-183   Retail Sales Tax -- Exemption -- Vehicles Sold to Nonresidents. To claim an exemption from sales tax on a vehicle under RCW 82.04.0264(2), the taxpayer must show that the vehicle: (1) will be registered and licensed immediately under the laws of the state of the purchaser's residence; (2) will not be used in Washington for more than three months; and (3) will not be required to be registered and licensed under the laws of Washington.
  7 WTD 205 BTA 85-183   Retail Sales Tax -- Exemption -- Nonresident Status of Taxpayer. For purposes of WAC 458-20-177 exempting sales of vehicles to nonresidents from retail sales tax, a taxpayer is considered a nonresident where it has places of business in both Washington and one or more other states.
  7 WTD 205 BTA 85-183   Retail Sales Tax -- Exemption -- Vehicles -- Sales to Nonresidents. The requirements for exemption from retail sales tax for sales of vehicles to non residents under WAC 458-20-177(1) were not met, where vehicles were transported to their out-of-state destinations by truck freight with neither a trip permit nor out-of-state license plates.
  7 WTD 205 BTA 85-183   Retail Sales Tax -- Exemption -- Vehicles -- Sales to Nonresidents. The terms of WAC 458-20-177 were substantially complied with, and a taxpayer seller of vehicles to nonresidents was entitled to exemption from retail sales tax, where the taxpayer showed that the vehicles were licensed under the laws of the state of the purchaser's residence, and the out-of-state registration and licensing occurred within a reasonable short period after the vehicles were shipped from Washington. The result was not changed by the taxpayer's choice of a Washington firm to modify the vehicles for the purchaser before they were shipped out-of-state.
  8 WTD 395 89-513   RETAIL SALES TAX -- SALE TO NON-RESIDENT FOR USE OUTSIDE THE STATE -- MOTOR VEHICLE -- OUTBOARD MOTOR. The retail sales tax exemption available to nonresidents under RCW 82.08.0264 and Rule 177 is strictly limited to the purchase of motor vehicles, trailers, or campers for use outside of this state. Because an outboard motor is not a motor vehicle, trailer, or camper, the exemption under RCW 82.08.0264 and Rule 177 is not applicable.
  10 WTD 9 89-408A   RETAIL SALES TAX -- EXEMPTION -- SALES TO WASHINGTON CORPORATIONS FOR USE OUTSIDE THIS STATE. A corporation with places of business in and out of this state may be considered a "nonresident" for purposes of RCW 82.08.0264 and WAC 458-20-177.
  11 WTD 349 91-167   RETAIL SALES TAX -- SALES TO MILITARY PERSONNEL COVERED UNDER UNITED STATES TREATY WITH NATO MEMBER NATIONS. A military officer based in Washington by a nation which is a party to NATO treaty TIAS 2846 "Status of Forces" is entitled to purchase a motor vehicle exempt of sales tax under the treaty's language mandating that the officer does not lose nonresidency status during the term of service.
  13 WTD 233 93-019   RETAIL SALES TAX -- NONRESIDENT MILITARY MEMBER STATIONED IN WASHINGTON -- WASHINGTON VEHICLE PURCHASE. RCW 82.08.0264(2) allows nonresidents to purchase a motor vehicle, trailer, or camper for use outside this state without payment of retail sales tax, but only if three requirements are satisfied: the motor vehicle, trailer, or camper will be registered immediately under the laws of the state of the purchaser's residence; it will not be used here more than three months; and it will not be required to be registered and licensed under the laws of this state.
  17 WTD 346 98-042   USE TAX -- EXEMPTION FOR PRIVATE MOTOR VEHICLES ACQUIRED IN ANOTHER STATE. A person who leased a private motor vehicle for more than two years in another state where he was a bona fide resident and then, while still a resident of the other state, exercised his right under the lease agreement to purchase that vehicle qualifies for the use tax exemption even if he purchased the vehicle less than 90 days prior to becoming a Washington resident.
  17 WTD 359 98-065   RETAIL SALES TAX -- RETAILING B&O TAX -- SALES FOR RESALE --INTERVENING USE --OWNERS CONSUMPTION OF INVENTORY. The consumption by the taxpayers owner of products that were purchased for resale results in the taxpayer being liable for retail sales tax on the purchases. However, because the products are not sold by the taxpayer, no B&O tax is due on such amounts.
  18 WTD 98 98-142   MOTOR VEHICLE EXCISE TAX (MVET) -- EXEMPTION -- RESIDENT -- HOME OR DWELLING. Whether a person is a resident of this state is fact specific. When a person has homes in Washington and another state, the amount of time the person spends in Washington is only one factor to be considered in determining whether the person has manifested an intent to live or be located in this state on more than a temporary or transient basis.
  18 WTD 98 98-142   MOTOR VEHICLE EXCISE TAX (MVET) -- NONRESIDENT -- JOINT OWNERS (WASHINGTON AND IDAHO). The statutory scheme generally requiring Washington residents to pay MVET on vehicles they use on the states highways, and generally exempting nonresidents who have properly licensed their vehicles in another state from paying MVET for their limited use of the vehicles on Washington highways, does not intend a situation in which a nonresident who has properly licensed a vehicle in another state would lose the MVET exemption solely because the person jointly owns the vehicle with a Washington resident (i.e., when the Washington joint owner never uses the vehicle).
  18 WTD 143 98-129   TRIP PERMITS -- ALTERNATIVE TO MVET -- MOTOR HOME -- WASHINGTON RESIDENT. When a motor home is co-owned by a Washington resident and a resident of another state and is licensed in the other state, the Washington co-owner may not operate the vehicle in Washington under trip permits in lieu of licensing it in Washington and paying the MVET.
  18 WTD 143 98-129   MVET -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF MOTOR HOME -- LICENSED IN OREGON -- USED IN WASHINGTON. When a Washington resident who is a co-owner of a motor home that is registered in another state uses the vehicle in Washington, the Washington resident must register the vehicle in Washington and pay the MVET.
  18 WTD 246 99-009   USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- USED IN WASHINGTON. Where there are dual residency owners (Oregon and Washington), any use of the motor home by either joint owner within this state constitutes a taxable incident. The use tax is imposed on the use in this state as a consumer of any article of tangible personal property. Where a Washington resident used a jointly owned motor home in Washington, which was licensed in the name of both owners in Oregon, the first use of the motor home in Washington gives rise to the imposition of use tax.
  18 WTD 246 99-009   MOTOR VEHICLE EXCISE TAX (MVET) -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF MOTOR HOME -- LICENSED IN OREGON -- USED IN WASHINGTON. Where a motor home is jointly owned by a Washington resident and a nonresident and the motor home is used by both owners in Washington, the owners must register the motor home in Washington and pay the MVET.
  18 WTD 348 99-003   RETAIL SALES TAX -- NON-RESIDENT BUYERS -- MOTOR VEHICLE DEALERS. Motor vehicle dealers must adequately complete non-resident certificates and identify the buyer as a non-resident, otherwise the retail sales tax must be collected.
  19 WTD 370 99-250   USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- USED IN WASHINGTON. Where a Washington resident and an Oregon resident jointly owned a motor home licensed in both owners names in Oregon, the Washington residents use of the motor home in Washington gave rise to the imposition of use tax.
  19 WTD 370 99-250   USE TAX -- JOINT OWNERS (RESIDENT AND NONRESIDENT) OF A MOTOR HOME LICENSED IN OREGON -- CLAIM THAT CO-SIGNED FOR FINANCING PURPOSES ONLY -- SUFFICIENCY OF EVIDENCE. A Washington residents claim that he is listed as a joint owner of a motor home on purchase documents and the Oregon title and registration solely for financing purposes, is not established by the mere fact the monthly payments on the vehicle were made only from the bank account of the Oregon joint owner, when other evidence of ownership contradicts the Washington residents explanation.
  19 WTD 588 99-295   AUTO DEALERS NON-RESIDENT PURCHASERS SUBSTANTIAL COMPLIANCE IDENTIFICATION. An auto dealer acts in good faith and substantially complies with the requirements in RCW 82.08.0264 and Rule 177 when the auto dealer examines the customers drivers license to determine a customers state of residence.
  19 WTD 588 99-295   AUTO DEALERS NON-RESIDENT PURCHASERS GOOD FAITH IDENTIFICATION MEMBERS OF THE MILITARY. An auto dealer does not substantially comply with the requirements in RCW 82.08.0264 and Rule 177 when the auto dealer examines the customers drivers license to determine a customers state of residence and the drivers license, although issued by a state other than Washington, bears a Washington address and the auto dealer does not examine any other identification of the customer.
  19 WTD 608 99-342   MVET -- USE TAX -- PURCHASE BY RESIDENT OUTSIDE STATE -- PRESUMPTION OF INTENTION TO USE IN STATE. When a Washington resident purchases a motor vehicle outside this state, a presumption is raised, for both use tax and MVET, that the resident intends to use the vehicle in this state. When the facts support presumptive use in this state, the burden is on the resident-taxpayer to prove that he or she has not had possession of or used the vehicle in this state.
  19 WTD 627 99-347   USE TAX DUAL RESIDENCY. Taxpayer who owns a home, operates a business, and has utility and telephone service in Washington has established substantial connections to Washington and evidence establishes an intent to be located in Washington, on more than a temporary or transitory basis. Taxpayer may be a resident of more than one state for use tax and motor vehicle excise tax (MVET) purposes.
  19 WTD 627 99-347   USE TAX DUAL RESIDENT -- USE OF VEHICLE REGISTERED OUTSIDE OF WASHINGTON. Taxpayer is not entitled to non-resident exemption for vehicles used in Washington when Taxpayer is a Washington resident. Vehicles used only to travel from Washington home to border are subject to use tax.
  19 WTD 627 99-347   MOTOR VEHICLE EXCISE TAX (MVET)-TRIP PERMITS. A dual resident (a resident of Washington and another state) may not operate a vehicle registered in the other state on Washington highways under the authority of a trip permit. A Washington resident must register a vehicle operated on Washington highways.
  19 WTD 666 99-324   USE TAX NON-RESIDENT EXEMPTION. Former Washington resident, who purchased a motor vehicle in Washington after his move to Idaho, was not liable for use tax where evidence showed only limited use in Washington and residency in Idaho was confirmed.
  19 WTD 698 00-014   EVASION PENALTY USE TAX AND MVET ON MOTORHOME. Where the taxpayer improperly used his dealer plate and failed to properly title and register the motor home, but these actions were not undertaken in an intentional effort to deliberately avoid the payment of the tax due, the evasion penalty does not apply. The taxpayer explained that the sale of the motor home was complicated by his health difficulties, which impacted his ability to run his business, in conjunction with a lack of familiarity with the requirements of acting as a wholesale dealer and the extremely limited market demand for the type of vehicle at issue.
  19 WTD 909 99-085   MVET -- RESIDENCE. A person is exempt from MVET if the person is a nonresident of Washington, has properly licensed the vehicle in his or her home state, is not employed in this state, and does not operate the vehicle in this state for more than six months in any continuous twelve-month period. A person who does not manifest an intent to live or be located in Washington on more than a temporary or transient basis is a "nonresident." Where vehicle owners moved to Alaska from Washington prior to using the vehicle at issue in Washington and were only in Washington intermittently since moving to Alaska, vehicle owners were not Washington residents, despite the fact that they owned real property in Washington.
  19 WTD 909 99-085   USE TAX -- RESIDENCE. For the use tax exemption articulated in RCW 82.12.0251 to be available: (1) a vehicle owner must be a nonresident, (2) the vehicle must be registered or licensed in the state of the user's residence, and (3) Washington registration of the vehicle must not be required. Where the vehicle owners were previously Washington residents, but they moved to Alaska, established residency there, and licensed the vehicle there, prior to use of the vehicle in Washington, use tax is not due where there is no evidence that would require the vehicle owners to register their vehicle in Washington.
  19 WTD 916 99-348   USE TAX EXEMPTION FOR PRIVATE AUTOMOBILES AND HOUSEHOLD GOODS. A motor home is not a private automobile or a household good for purposes of the use tax exemption for persons who move to the state.
  19 WTD 1003 00-062   RETAIL SALES TAX AUTOMOTIVE SALES OUT-OF-STATE. Car dealers must document both that vehicles were sold to nonresidents and how the vehicles left the state to qualify for the sales tax exemption.
  20 WTD 020 99-280R   USE TAX DEFERRED SALES TAX --VALUE GIFT CELLULAR PHONES: Use tax on cellular phones given away to promote cellular service commissions is measured by the donors arms length purchase price of the phones.
  20 WTD 39 00-043   WHOLESALING B&O TAX ACCOMMODATION SALE: AUTOMOBILE DEALER. Failure of an initiating automobile dealer of an accommodation sale to meet the requirement of keeping in its records a bona fide existing order of a customer prevents the dealer/taxpayer from deducting wholesaling B&O tax for that sale from its gross income.
  20 WTD 39 00-043   RETAIL SALES TAX EXEMPTION SALES OF MOTOR VEHICLES TO NON-RESIDENTS FOR USE OUTSIDE THIS STATE. Sales of motor vehicles do not qualify for the retail sales tax exemption if the dealer/taxpayer does not exercise a reasonable degree of prudence in accepting a buyers statement of non-residency in an affidavit.
  20 WTD 136 99-049   USE TAX -- MVET -- NONRESIDENT EXEMPTION -- MOTOR HOME -- PARTNERSHIP BURDEN OF PROOF. Use tax and MVET was found due on a motor home where Taxpayer failed to establish that the motor home was owned by an out-of-state partnership, that the commercial domicile of the alleged partnership was out-of-state, and that the partnership actually existed.
  20 WTD 175 99-101   USE TAX NONRESIDENT EXEMPTION. To qualify for the nonresident use tax exemption, a taxpayer must prove he is (1) a nonresident of this state; (2) the vehicles were licensed in the state where he was a resident; and (3) the vehicles were not required to be licensed in Washington. Where an Idaho resident uses the Washington residence owned by his marital community on a regular basis, visits his wife and child in Washington on a regular basis, engages in Washington community activities, and operates vehicles with Washington licenses, the Idaho resident manifests an intent to live or be located in Washington on more than a temporary or transient basis and is considered a Washington resident, as well. Washington residents are required to license their motor vehicles in Washington. As such, use tax was due with respect to the vehicle at issue.
  20 WTD 175 99-101   COMMUNITY PROPERTY; TAX LIABILITY. In order to sustain the use tax assessment, we need only to find one of the taxpayers in a marital community was a Washington resident. The Department has consistently held that a tax liability imposed on one joint owner of a vehicle who is a Washington resident can be imposed upon the other who is not a resident. The debt for use tax is a debt of the marital community, composed of the taxpayer and his wife.
  21 WTD 25 01-098   RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY GOOD FAITH RELIANCE. When a seller receives information contrary to a buyers assertion that he is a nonresident, the seller may no longer in good faith rely on the buyers claim.
  21 WTD 25 01-098   RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY BURDEN OF PROOF. Persons seeking the benefit of a tax exemption bear the burden of proving they are qualified for the exemption.
  21 WTD 25 01-098   RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NON-RESIDENCY EVIDENCE. By renewing his Washington drivers license, and thus declaring himself to be a Washington resident on the very day he signed the purchase agreement for his automobile, Taxpayer effectively contradicted the very testimony and documentary evidence he now offers to prove he was a nonresident. The cumulative evidence, at best, suggests Taxpayer may have been a dual resident of both states.
  21 WTD 25 01-098   RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE NONRESIDENCY DUAL RESIDENT. Nothing in the taxing statutes suggests that the Legislature intended to treat dual residency citizens different than single residency citizens.
  21 WTD 25 01-098   RETAIL SALES TAX EXEMPTION SALE OF MOTOR VEHICLE - NON-RESIDENCY EVIDENCE AVAILABLE TO DEALERSHIP. Evidence that a buyer had a current Washington drivers license justified seller's conclusion that Taxpayer was not an exempt Washington nonresident.
  21- WTD 150 00-218   Petition concerning unpaid retail sales tax on the Washington purchase of a motor home by Washington residents, and the penalties and interest assessed thereon.
  21 WTD 209 01-176   RETAIL SALES TAX TAX EXEMPTIONS -- INDIANS AUTOMOBILE PURCHASES DELIVERY OUTSIDE INDIAN COUNTRY. When an enrolled member of an Indian tribe takes delivery/possession of an automobile outside of the enrolled members Indian tribal lands, the sale is not exempt from retail sales tax.
  24 WTD 303 04-0198   USE TAX -- NONRESIDENT MILITARY -- PERMANENT ASSIGNMENT TO WASHINGTON MILITARY BASE. A military officers use of his motor home purchased and used in Washington while he was on permanent assignment to a Washington military base was held to be subject to use tax even though he was a legal resident of Oregon.
  26 WTD 59 06-0037   RETAIL SALES TAX EXEMPTION SALES OF MOTOR VEHICLES TO NONRESIDENTS FOR USE OUTSIDE THE STATE PROOF REQUIRED. To qualify for the exemption for sales of motor vehicles to nonresidents for use outside the state, a motor vehicle dealer must obtain a signed affidavit from the nonresident purchaser and must certify that the vehicle left the dealers premises under the authority of a trip permit or under the authority of valid license plates issued to that vehicle by the state of the purchasers residence. There is no exception for vehicles that are loaded onto a truck or trailer to be transported out of state.
  26 WTD 59 06-0037   RETAIL SALES TAX EXEMPTION SALES TO RESIDENTS OF STATES THAT IMPOSE SALES TAX OF LESS THAN 3%. BURDEN OF PROOF. The exemption for sales to residents of states that impose sales tax of less than 3% is limited to purchasers who are bona fide residences of one of the states, possessions, or Provinces of Canada listed in ETA 2014. Where the evidence is conflicting as to whether the purchaser is a resident of a qualifying state, possession, or Province, the exemption must be denied.
       
       
         
       
OTHER: