Sales tax for Plug-in

[Anonymous]

Hi, looking for a sanity check. Scheduled to purchase a plug in hybrid in MD. My reading of the DC tax provision is that vehicles which get over 40 mpg are exempt from sales tax.
DMV was telling me that this only applies to full EVs and not plug-in hybrids. Dealership thinks sales tax should be applied. Anyone with experience on this, i dont want to pay if I dont have to as I foresee a hassle claiming any of it back.

[Anonymous]

Dc has a vin-based calculator. What does it say?

I didn’t get taxed on my i3, which had a serial hybrid range extender.

[Anonymous]

Anonymous wrote:Dc has a vin-based calculator. What does it say?

I didn’t get taxed on my i3, which had a serial hybrid range extender.

I didn’t get taxed by DC when I bought my “conventional” hybrid 2 years ago. Not sure if that’s changed since then but the dealership was very knowledgeable of this and even used it as part of the sales pitch

[Anonymous]

Anonymous wrote:

Anonymous wrote:Dc has a vin-based calculator. What does it say?

I didn’t get taxed on my i3, which had a serial hybrid range extender.

I didn’t get taxed by DC when I bought my “conventional” hybrid 2 years ago. Not sure if that’s changed since then but the dealership was very knowledgeable of this and even used it as part of the sales pitch

According to this DC website: "The District offers a tax exemption for EVs and high efficiency vehicles. Motor vehicles with fuel economy in excess of 40 mpg, including EVs, are eligible for an exemption for paying the vehicle excise tax. In 2019, the median excise tax per vehicle purchase was $680. The excise tax is expected to be revised in 2021."

https://doee.dc.gov/service/electric-vehicles-resources

Given the wreckage of COVID on the District's tax rolls, it wouldn't surprise me if hybrids no longer qualify for the excise tax exemption. You probably need an EV or PHEV.

[Anonymous]

This excise tax document specifies that only "Electric Vehicles" are exempted from excise taxes as of Feb 1, 2021.

https://dmv.dc.gov/sites/default/files/dc/sites/dmv/publication/attachments/Amended%20Excise%20tax%20exemption%20categories%201%2021.pdf

I looked at the referenced DC Code and there is no explicit definition of "Electric Vehicle":
Definitions: https://code.dccouncil.us/us/dc/council/code/sections/50-2201.02
Excise tax exemption statutes: https://code.dccouncil.us/us/dc/council/code/sections/50-2201.03

I'd buy a PHEV if you want to be exempted and don't want to go full electric. But you should probably check with the DMV first to see if it qualifies.

[Anonymous]

Hmm. Just bought a PHEV was charged sales tax, however I see the definition of electric vehicle ambiguous. Not sure of my options but maybe worth a shot.

[Anonymous]

Anonymous wrote:Hmm. Just bought a PHEV was charged sales tax, however I see the definition of electric vehicle ambiguous. Not sure of my options but maybe worth a shot.

Go for it and let us know what happens! I'm interested in a PHEV but don't really want a full EV at this time.

[Anonymous]

I want to buy a Phev and live in DC, it gets 40 miles on a single charge, so does that qualify?