Personal use of used vehicles (new and used car dealers)

Personal use of used vehicles (new and used car dealers)

Personal use of used vehicles taxable

Used vehicle dealers who provide used cars to their sales staff or managers for personal use without charge are subject to use tax.

How is the use tax computed?

The tax is due on one vehicle per year for each sales person or manager who uses one.

How to determine the value

The value for use tax reporting is the average selling price of all used vehicles sold in the preceding year multiplied by 25%.

When is the use tax due?

The use tax is due in the month in which the vehicle is first used for personal use.

New vehicle dealers

New vehicle dealers will also pay tax in this manner for used cars furnished to sales staff or manager, but only if no cars are provided during the course of the year to the manager or sales person.

New and used cars provided

If both new and used cars are provided by a new vehicle dealer to a manager or sales person, use tax liability is figured as described in the sections Demonstrator Use of Vehicles and Executive Vehicles.

Used car dealer - new car

Purchase of a new car by a used car dealer and used personally by the dealer or person associated with the dealer is subject to retail sales tax at the time of purchase.


Revised Code of Washington (RCW) 82.12.020
Washington Administrative Code (WAC) 458-20-132
Washington Administrative Code (WAC) 458-20-178