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Intended audience: Sellers of zero emission buses, transit agencies & federally recognized Indian tribes.
Effective July 1, 2025, zero-emission buses are exempt from sales or use tax when purchased by either:
- A transit agency.
- A federally recognized Indian tribe to provide public transportation services.
This exemption expires after the last day of the calendar month immediately following the month the department determines that the total amount of exemptions issued reaches or exceeds $14,000,000. Notification of the issued and remaining exemption amounts available will be published on the department’s website and updated monthly.
Documentation requirements
The buyer must give the seller a completed buyer’s retail sales tax exemption certificate.
The seller will:
- Report sales of zero emission buses under the Retailing business and occupation (B&O) tax and retail sales tax classifications.
- Take the Zero Emission Buses Purchased by Qualifying Agency Providing Transportation Services deduction from the retail sales tax only.
- The deduction is hyperlinked so you can provide required vehicle information, such as vehicle make and model.
- Keep a copy of the completed exemption certificate provided by the buyer for 5 years.
Definitions
Transit agency means a city-owned transit system, county transportation authority, metropolitan municipal corporation, public transportation benefit area, unincorporated transportation benefit area, or regional transit authority.
Zero emission bus means a bus that emits no exhaust gas from the onboard source of power, other than water vapor.
References
ESSB 5801 Part VIII Green transportation policy
Questions?
Please visit dor.wa.gov or call 360-705-6705.
