This bill amends existing Washington state law to provide a sales and use tax exemption for motor vehicles sold to tribes or tribal members. The key change allows for the exemption to apply regardless of whether the tribal member resides in Indian country, as long as they have tax-exempt status. The bill also specifies that sellers must verify the tribal membership of buyers through documentation such as a tribal membership card or a letter from a tribal official. Additionally, the requirement for the vehicle to be delivered in Indian country has been removed, simplifying the process for tribal members to obtain the tax exemption.

Furthermore, the bill introduces a new section to the law 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 amended section still applicable. The act is set to take effect on January 1, 2026, and includes a performance statement aimed at evaluating the effectiveness of the tax preference by monitoring vehicle sales to tribal members, with the potential for extension if sales increase significantly by 2034. The bill also establishes an expiration date for the tax exemption provisions on January 1, 2037.

Statutes affected:
Original Bill: 82.08.0317