WA exempts $15,000 from EV sales under $45000. I’m buying a Prius Prime which qualifies with both >30 miles range and <$45k MSRP. But how does this actually work? I’m buying it out of state and they don’t know anything about it. I am committing to paying sales tax on my down payment and $4500 TFS credit on a Prius Prime since I’m going to owe at least that much eventually. I’m going to buyout the lease immediately and I don’t want to pay the full tax. Has anyone done this or know how it should work? My guess at this point is that TFS will apply the tax credit in the buyout calculation.
When you go to register it in WA they will ‘refund’ part of the taxes you pay.
Thanks for that FAQ! That seems to support that I should go ahead and pay the taxes on my up front payments with the out-of-state dealer (10.4% x $6250 = $650). But since the remainder of the taxes are still due each month, and I still will eventually owe sales taxes on the $43k - $15k exemption, I don’t understand how they can refund me at that time. It seems like something has to be done at the buyout. Perhaps this indicates that I would pay all the taxes to TFS at the buyout, take the buyout paperwork to the DOL showing I paid the total taxes, and they would refund me then?
AFAIK
When you lease the car, you get a tax exemption / refund.
When you buy the car at the end, you get a tax exemption / refund
But Monthly payments are not tax exempt, that’s a tax on the ‘loan’ not on the car itself. So no refund.
I found the answer. So the first lease figures I was given with sales taxes was from a sales guy and were not accurate. After calling Dealer, Toyota, WA DOL, WA DOR, all pointed fingers at each other and noone knew how this was to be handled. When I finally got the real lease contract the first one excluded the sales taxes on the up front payments but did include sakes taxes monthly. After correcting the Agreed Upon Price being too high (they just randomly added on some $600!!! - thanks LeaseHackr for equipping me to find that discrepancy), the system generated another one with no sales taxes either on the up front or monthly. Not even the finance manager understands what changed but I was loving it. So it all did work magically on their end in the end. Everyone was just confused about how it should work. The change brought my monthly down from $601 to $504!
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