Washington Introduces 9.9% Peer-to-Peer Car-Sharing Tax

• Washington will impose a 9.9% peer-to-peer car-sharing tax starting January 1, 2027, on transactions where the vehicle was purchased using a reseller permit or other approved exemption certificate; the tax is in addition to retail sales tax.
• The car-sharing platform must collect the tax at the start of the car-sharing period.
• Vehicle owners must provide a declaration form stating whether the vehicle was bought with a reseller permit or other approved exemption certificate; tax is collected only if that form indicates an exempt purchase basis.
• Platforms must retain the declaration forms for five years and report the tax on the excise tax return under the “Peer-To-Peer Car-Sharing” tax classification.
• The law defines peer-to-peer car-sharing and excludes traditional retail car rentals and certain rental car businesses from this tax.

Source: dor.wa.gov

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---