(1) Except as otherwise provided in subsections (2) through (4) of this section, the department shall waive penalties and interest otherwise due under this chapter if all of the following conditions are met:
(a)(i) The penalties and interest are imposed with respect to additional motor vehicle taxes imposed under RCW 82.12.818 and 82.08.817; and (ii) the tax liability is directly attributable to a failure to collect additional motor vehicle taxes as provided in sections 203 and 204, chapter 417, Laws of 2025 for tax reporting periods through June 30, 2026;
(b) The taxpayer files with the department any amended or outstanding returns covering tax liabilities with respect to which a penalty and interest waiver under this section is requested;
(c) The taxpayer remits full payment to the department of the balance due on all tax liabilities for which a penalty and interest waiver under this section is requested or enters into a payment agreement with the department as provided in RCW 82.32.080 for such liabilities;
(d) The taxpayer has timely filed returns and remitted payment on all taxes due for a period of 24 months immediately preceding the period covered by the return for which the waiver is being requested; and
(e) The taxpayer must never have had an evasion penalty assessed against the taxpayer by the department under RCW 82.32.090 or a penalty assessed against the taxpayer by the department under RCW 82.32.291 for misusing a reseller permit or resale certificate.
(2)(a) The taxpayer must submit a completed application for a penalty and interest waiver under this section in a form and manner prescribed by the department.
(b) Applications for a penalty and interest waiver under this section must be submitted to the department on or before September 30, 2027.
(3) All tax liability reported and paid as required in subsection (1) of this section is subject to verification by the department as provided in RCW 82.32.050. This section does not preclude the assessment of taxes, penalties, and interest with respect to any amounts determined by the department to have been underpaid for any tax period for which the taxpayer previously received penalty relief under this section.
(4) This section does not apply to tax liabilities associated with additional motor vehicle taxes imposed under RCW 82.12.818 and 82.08.817 for tax reporting periods beginning on or after July 1, 2026.
(5) This section expires January 1, 2029.
[ 2026 c 255 s 203.]
Notes:
Effective date—2026 c 255 ss 101, 102, 201, 202, 203, 301, and 302: See note following RCW 82.08.020.
Intent—2026 c 255: See note following RCW 82.08.020.