Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-17802 - Collection of use tax by county auditors and department of licensing-Measure of tax

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The department of revenue (department) has
			 authorized county auditors and the department of licensing to collect the use
			 tax imposed by chapter 82.12 RCW when a person applies to transfer the
			 certificate of title of a vehicle acquired without the payment of sales tax.
			 See
			 RCW
			 82.12.045. This rule explains how county
			 auditors, their sub-agents, and the department of licensing determine the
			 measure of the use tax. This rule does not relieve a seller registered with the
			 department of the statutory requirement to collect sales tax when selling
			 tangible personal property, including vehicles.
			 RCW
			 82.08.020 and
			 82.08.0251.
			 The use tax reporting responsibilities of Washington residents in other
			 situations and the general nature of the use tax are addressed in WAC
			 458-20-178 (Use tax). The
			 application of tax to vehicles acquired by Indians and Indian tribes is
			 discussed in WAC
			 458-20-192 (Indians-Indian
			 country).
Vehicle licensing locations and information about vehicle
				titles and registration are available from the department of licensing on their
				website at: dol.wa.gov. This information is also available by contacting the
				local county auditor's office listed in the government pages of a telephone
				directory.
(2)
What is
			 use tax based on?
For purposes of computing the amount of use tax due,
			 the value of the article used is the measure of tax. The value of the article
			 used is generally the purchase price. If the purchase price does not represent
			 the true value of the article used, the value must be determined as nearly as
			 possible according to the retail selling price at place of use of similar
			 vehicles of like quality and character.
			 RCW
			 82.12.010.
(3)
Use of automated system to verify
			 measure of tax.
When a person applies to transfer the certificate of
			 title of a vehicle, county auditors, their subagents, or the department of
			 licensing must verify that the purchase price represents the true value. In
			 doing so, county auditors, their subagents, or the department of licensing
			 compare the vehicle's purchase price to the average retail value of comparable
			 vehicles using an automated valuing system. The automated valuing system
			 identifies the average retail value using a database that is provided by a
			 regional industry standard source specializing in providing valuation services
			 to local, state, and federal governments, and the private sector.
In limited situations, the automated valuing system's database
				may not provide the average retail value for a vehicle. For example, the
				automated valuing system's database does not provide average retail value
				information for collectible vehicles or vehicles that are over twenty years of
				age. In the absence of an average retail value, county auditors, their
				subagents, or the department of licensing will determine the true value as
				nearly as possible according to the retail selling price at place of use of
				similar vehicles of like character and quality. To assist in this process, the
				department of revenue and the department of licensing may approve the use of
				alternative valuing authorities as necessary.
(4)
What happens when the purchase
			 price is presumed to represent the true value?
County auditors, their
			 subagents, or the department of licensing will use the purchase price to
			 compute the amount of use tax due when the purchase price represents the
			 vehicle's true value. County auditors, their subagents, or department of
			 licensing will presume the purchase price represents the vehicle's true value
			 if one of the following conditions is met:
(a)
			 The vehicle's average retail value, as provided by the automated valuing
			 system, is less than $7,500.
For example, a person buys a vehicle for $2,800. The automated
				valuing system indicates that the vehicle's average retail value is $4,900. The
				purchase price is presumed to represent the vehicle's true value because the
				average retail value is less than $7,500.
(b) The vehicle's purchase price is not more
			 than 20 percent below the average retail value as provided by the automated
			 valuing system.
For example, a person buys a used vehicle for $17,000. The
				automated valuing system indicates the vehicle's average retail value is
				$20,000. When compared to the average retail value, the purchase price is not
				more than 20 percent ($4,000) below the average retail value. Consequently, the
				purchase price is presumed to represent the vehicle's true
				value.