Definition

A nonresident is an individual who enters Washington on a transitory basis and does not show an intent to reside in Washington on a full- or part-time basis.

The term "nonresident" does not include:

1. Persons who maintain residences in more than one state, if one of the states is Washington; or
2. Persons who live in Washington and intend to reside in another state, but who have not established residency in that state.

Three-month limitation

Nonresidents (including students) who are temporarily residing in Washington must pay retail sales tax when purchasing a vehicle, if they intend to use the vehicle in Washington for more than three (3) months.

Sales of motor vehicles to qualified nonresidents

Sales tax does not apply to sales of motor vehicles, trailers, or campers to qualified nonresidents for use outside of this state, even though delivery is made within this state, under the following conditions:

1. the vehicles will be taken from the point of delivery in this state directly to a point outside this state under the authority of a trip permit; or
   
   
2. the vehicles will be registered and licensed immediately (at the time of delivery) under the laws of the state of the purchaser's residence, will not be used in this state more than 3 months, and will not be required to be registered and licensed under the laws of this state.
   
   
3. The dealer must establish that:
   
   
   1. the purchaser is a nonresident of Washington;
      
   2. the vehicle is for use outside this state; and
      
   3. the vehicle is to be driven from his premises under the authority of a trip permit or valid license plates issued by the state of the purchaser's residence with such plates affixed to the vehicle at the time of final delivery.

Sales of motor vehicles to qualified nonresident corporations

Sales tax does not apply to sales of motor vehicles, trailer, or campers to nonresident corporations for use outside of this state. The sale must meet the same requirements as those stated above for qualified nonresidents. However, in this case, a distinction must be made between the corporation and its employees or officers. Therefore, in addition to the above requirements, the dealer must establish that the corporation is the purchaser (i.e. paid for by corporate check and registered in the corporation's name). The exemption still applies, for example, when an officer or employee, purchasing on behalf of the corporation, is a Washington resident when all the other requirements are met.

Sales of other property (other than vehicles) to nonresidents

Persons visiting Washington from other states, United States possessions and provinces of Canada, which do not impose a three percent or more retail sales tax, are eligible for an exemption from the retail sales tax on certain items. As of June 1, 2003, these jurisdictions are:

Exemption from retail sales tax is only permitted when:

1. Tangible personal property is sold;
2. For use outside Washington; and
3. To persons who can satisfactorily establish qualified nonresident status

Sale of vehicle parts

The sales of car parts to a qualified nonresident are NOT subject to the retail sales tax under this exemption.

Sales to qualified nonresidents remain subject to tax under the Retailing B&O tax classification. The retail sales tax deduction is shown as "Qualified Nonresident Sales."

ID required

The dealer must see one piece of identification with a picture on it which proves the customer is from one of these qualifying locations. A record showing the type of proof accepted, including any identification numbers and the expiration date, must be kept in the dealer's files. A copy of the picture ID satisfies this requirement.

One piece of ID is not sufficient to purchase a vehicle - other requirements must be met. See Exempt Vehicle Sales for more information.

Sales of other property (other than vehicles) to nonresident corporations

Nonresident corporations may also qualify to make tax-exempt purchases by obtaining a "Corporate Nonresident Permit" from the Department of Revenue. Dealers who sell to nonresident corporations should examine the nonresident permit to make certain that it is valid during the period of the sale and that it is issued to the purchaser. The dealer must record the permit number in its records. Nonresident corporations, which qualify to obtain a permit, are those incorporated in one of the states, possessions, or provinces of Canada shown in Nonresidents.

Vehicles may not be purchased using this corporate nonresident permit alone. The other requirements must be met. See Exempt Vehicle Sales for more information.

Foreign diplomats

See Government - Foreign and Diplomats

Delivery to noncontiguous states

Persons who are residents of noncontiguous states, territories or possessions of the United States (i.e. Alaska, Hawaii) may purchase parts and vehicles exempt from the retail sales tax under certain conditions. The dealer must:

1. Deliver the property to the purchaser or its designated agent at the usual receiving terminal of the for-hire carrier selected to transport the goods, under such circumstance that it is reasonably certain that the goods will be transported directly to the specified destination.
   
   
2. Receive a certification from the purchaser that the goods or vehicles will not be used in the state of Washington and are intended for use in the specified noncontiguous state, territory or possession.
   
   
3. Receive written instructions signed by the purchaser directing delivery of the goods or vehicle to a dock, depot, warehouse, airport or other receiving terminal for transportation of the goods to their place of ultimate use.
   
   Where the purchaser is also the carrier, delivery may be to a warehouse receiving terminal or other facility maintained by the purchaser when the circumstances are such that it is reasonably certain that the goods will be transported directly to their place of ultimate use.
   
   
4. Receive a dock receipt, memorandum bill of lading, trip sheet, cargo manifest or other document evidencing actual delivery to such dock, depot, warehouse, freight consolidator or forwarder, or receiving terminal.
   
   The Buyers' Retail Sales Tax Exemption Certificate (pdf) should be completed to meet part of the above requirements. Please note that the Retailing B&O tax is due on these transactions.

Vehicles shipped to customers outside of Washington

If a nonresident purchases a vehicle in Washington and has it shipped to them outside of Washington as a condition of sale, no B&O or retail sales tax is due. It is considered an interstate sale.

However, if a nonresident signs paperwork indicating that the vehicle is delivered outside the state, the B&O tax applies if the vehicle is delivered to the buyer in Washington. In other word, the actual facts override the terms of the agreement.

If the dealer is involved in obtaining Washington license plates or Washington license plates are attached (when delivery is outside the state) the dealer must collect the use tax.

Proof

The dealer must have documentary proof that the vehicle, as required by the sales contract, was delivered outside the state and that any Washington state license plates have been removed.

The dealer must keep the following information in its records:

1. The contract or agreement of sale, if any, and
   
   
2. If shipped by a for-hire carrier; a bill of lading or other contract of carriage indicating the seller has delivered the goods to the for-hire carrier for transport to the purchaser or the purchaser's agent at a point outside the state. The seller must be shown on the contract of carriage as the consignor (or other designation of the person sending the goods) and the purchaser or its agent as consignee (or other designation of the person to whom the goods are being sent); or
   
   
3. If sent by the seller's own transportation equipment:
   
   
   1. A Buyer's Certificate (Out-of-State Delivery) - in substantially the form prescribed in WAC 458-20-177.
      
      
   2. Seller's Certificate (Out-of-State Delivery) - signed by the person who actually delivers the vehicle to the buyer.
      
      
   3. These certificates must be completed only after the delivery occurs.

References

Washington Administrative Code (WAC) 458-20-177
Washington Administrative Code (WAC) 458-20-193
Excise Tax Advisory (ETA) 2014.08.193(pdf)
Special Notice: Vehicles and Parts Sales to Nonresidents (Issued June 4, 2007)
Special Notice: Sales of Auto Parts to Nonresidents and Annual Notification for Repair Facilities (Issued May 31, 2007)

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