No Sales Tax

[Hari_Prius]

Originally Posted by inventor00

Special Tax Break Available for New Car Purchases This Year
Special Tax Break Available for New Car Purchases This Year

IR-2009-30, March 30, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.
“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”
The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.
The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.
The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.

thanks for sharing this info!

[Politburo]

Originally Posted by inventor00

the vehicle must be purchased after Feb. 16, 2009

Just wanted to highlight that part.

We bought on Feb. 2, so no help there for us. We also bought our home in 2008 and we're on the short end of the stick for the home buying tax credit. (The 2008 break was a $7,500 loan.. 2009 is $8,000 that you don't have to pay back)

[lauren80ryan]

From Fuzzy1 from another thread:
Well, the Legislature passed a budget yesterday. It seems that future 2010 Prius buyers are still safe from the state sales tax -- so far, my quick search finds no indication that the possible repeal is included in this budget, and local news is not mentioning it. But I encourage other readers to search in case I missed something.

The exemption in question is RCW 82.08.813.

The new State Budget is HB1244. More information about this bill is on the state's Bill Finder page.

With the sales tax exemption still in effect through this and next year, I should be able to wait until the initial sales rush is over.

[lauren80ryan]

http://www.ofm.wa.gov/budget09/highlights/default.asp

I read through highlights of budget and NO MENTION of removing the tax exemption on hybrid vehicles. The senate might meet again but probably not for a while, most are saying they will deal with other bills that did not get dealt with in December. This is the approved budget as of now though, from what I can gather.

If anyone finds anything different, PLEASE POST IT HERE!!

Otherwise, looks like WA state 2010 prius buyers are good to go and can hold out for what they want without risking tax cost!! WOHOOO!!!!