This bill amends existing law to provide a sales and use tax exemption for motor vehicles sold to tribes or tribal members in Washington State. The key change is that the exemption is no longer contingent upon the vehicle being delivered in Indian country; instead, it applies simply if the sale is made to a tribe or tribal member, regardless of their residence. To qualify for the exemption, tribal members must present documentation proving their tax-exempt status, such as a tribal membership card or a certificate of enrollment. The seller is required to retain copies of this documentation for a specified period.

Additionally, the bill introduces a new section that states the provisions of the chapter do not apply to the use of motor vehicles sold to tribes or tribal members, with all eligibility requirements from the sales tax exemption section also applying here. The act is set to take effect on January 1, 2026, and includes a performance statement aimed at evaluating the effectiveness of the tax preferences, with a goal of increasing vehicle sales to tribal members by at least 20% by 2034. If this target is met, the legislature intends to consider extending the expiration date of the tax preference, which is currently set for January 1, 2037.

Statutes affected:
Original Bill: 82.08.0317