(1)(a) Except as provided in subsection (3) of this section, in addition to the taxes imposed under RCW 82.08.020, there is levied and collected an additional tax of eight percent on the sale of a motor vehicle if:

(i) The selling price of the motor vehicle plus trade-in property of like kind for purchased vehicles exceeds $100,000; or

(ii) In the case of a lease requiring periodic payments, the fair market value of the motor vehicle exceeds $100,000 at the inception of the lease.

(b) The additional tax imposed in this subsection (1):

(i) Is equal to the portion of the selling price plus trade-in property of like kind for purchased vehicles in excess of the deduction amount specified in subsection (2) of this section, multiplied by eight percent; or

(ii) In the case of a lease requiring periodic payments, is the fair market value of the motor vehicle in excess of the amount specified in subsection (2) of this subsection, at the inception of the lease, multiplied by eight percent.

(2) The deduction amount is $100,000 for fiscal year 2026. The deduction amount must be annually adjusted on July 1st of each year by increasing the amount by two percent and rounding the result to the nearest whole dollar.

(3) The taxes imposed under this section do not apply to the sale or lease of:

(a) A commercial motor vehicle, as defined in RCW 46.25.010; or

(b) A motor vehicle that has a gross vehicle weight rating of greater than 10,000 pounds other than motor homes, as defined in RCW 46.04.305.

(4) The revenue collected under this section must be deposited in the multimodal transportation account created in RCW 47.66.070.

(5) For the purposes of this section and RCW 82.12.818, the following definitions apply:

(a) "Motor vehicle" has the same meaning as in RCW 46.04.320, but does not include:

(i) Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, unless the farm tractor or farm vehicle is for use in the production of cannabis;

(ii) Off-road vehicles as defined in RCW 46.04.365;

(iii) Nonhighway vehicles as defined in RCW 46.09.310; and

(iv) Snowmobiles as defined in RCW 46.04.546.

(b) "Value of the motor vehicle" means the fair market value of the motor vehicle. In the case of a leased motor vehicle in which the consumer is required to make periodic lease payments, "value of the motor vehicle" means the fair market value of the motor vehicle at the inception of the lease.

Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 417 ss 203, 204, 207, and 208: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to sections 203, 204, 207, and 208 of this act." [ 2025 c 417 s 206.]

Effective date—2025 c 417 ss 104, 105, 107-110, 201-206, 301-303, 604, and 903: See note following RCW 46.17.355.

Findings—Intent—2025 c 417: See note following RCW 82.38.030.