wa-law.org > bill > 2025-26 > HB 1525 > Original Bill

HB 1525 - Vehicle sales tax/tribes

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Section 1

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    1. State sales tax is not imposed on the sale of a motor vehicleif the sale is made to a tribe or tribal member. A tribal member is not required to reside in Indian country for the exemption under this section to apply. However, the tribal member must have tax exempt status as a member of the tribe .

    2. In order to substantiate the tax exempt status of a tribal member, the seller must require presentation of one of the following:

      1. The buyer's tribal membership or citizenship card from a tribe;

      2. The buyer's certificate of enrollment with a tribe; or

      3. A letter signed by an official of a tribe confirming the buyer's tribal membership status.

  2. The seller must retain copies of the documentation required under subsection (1) of this section for the period required in RCW 82.32.070.

  3. Nothing in this section may be construed to affect, amend, or modify federal law or Washington state tax law as applied to a tribal member or tribe.

  4. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

    1. "Indian country" has the same meaning as provided in 18 U.S.C. Sec. 1151.

    2. "Tribe" means a federally recognized tribe.

    3. "Tribal member" means an enrolled member of a federally recognized tribe.

Section 2

  1. The provisions of this chapter do not apply with respect to the use of a motor vehicle that is sold to a tribe or tribal member.

  2. All the eligibility requirements, conditions, limitations, and definitions in RCW 82.08.0317 apply to this section.

  3. This section expires January 1, 2037.

Section 3

  1. This section is the tax preference performance statement for the tax preferences contained in sections 1 and 2, chapter . . ., Laws of 2025 (sections 1 and 2 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.

  2. The legislature categorizes these tax preferences as ones intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).

  3. It is the legislature's specific public policy objective to promote the efficacy of the sales and use tax preference provided to tribal members when purchasing vehicles in Washington.

  4. If the review finds that annual sales of vehicles to tribal members has increased by at least 20 percent by 2034 over calendar year 2025, then the legislature intends to extend the expiration date of this tax preference.

  5. In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state.

Section 4

This act takes effect January 1, 2026.

Section 5

Section 1 of this act expires January 1, 2037.

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