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We are relocating to Washington. I am planning to buy a new vehicle in Alaska (no sales tax) keep it in Alaska for 90 days and then drive it to Washington. I could put it on the Ferry but that cost is about the same as driving down. Seems like a decent way not to pay use tax.
If you have not paid sales tax on your vehicle, you will be required to pay a use tax upon its registration. This is required by law when you purchase or transfer a vehicle from a private party. You must also pay use tax if you're bringing a vehicle into the state from an area that does not charge sales or use tax.
The use tax will be charged at the same rate as sales tax for your area, plus an additional 0.3% motor vehicle sales/use tax.
To calculate sales/use tax for your vehicle, use the tax rate lookup tool on the Washington Department of Revenue website.
You do NOT have to pay the use tax if:
The vehicle was gifted to you and:
You can prove that the previous owner paid sales tax on the vehicle. OR
The previous owner had the vehicle for at least 7 years, and is from a state that charges sales tax.
You buy a vehicle while on military active duty (see below).
Moving to Washington New Residents
If you purchased a "private motor vehicle" in another state more than 90 days before moving here, you do not owe Washington's use tax. RCW 82.12.0251(3).
When I lived in AK my plates were good for three years if I remember correctly? Once I moved back to MN, I didn't change plates to MN for a year or two, could always do that.
We are relocating to Washington. I am planning to buy a new vehicle in Alaska (no sales tax) keep it in Alaska for 90 days and then drive it to Washington. I could put it on the Ferry but that cost is about the same as driving down. Seems like a decent way not to pay use tax.
Any thoughts/done this?
So the goal is to reap the benefits of living in Washington without contributing to the state in any way even though they charge no income tax either?
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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If you currently live in a no income tax state, also With NO sales tax, does it not make the most sense to buy a planned new car before moving to a state with very high sales tax?
Once you have arrived in your new state, you can / should fully support the state economy.
But.... you also may be quite mobile / RV / contract employment or retiree, and choose a SD income tax free domicile, and a MT LLC to buy, own and register your vehicles. (Sales tax free) . Completely legal within the rules of each state.
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