Ken B. Winger wrote:

- quote -

WA doesn't have a VAT. It does have a Use Tax based on the
general sales tax rate for the place of residence. Note
that the Use Tax is not payable if the vehicle was owned and
operated in your previous state of residence for at least 90
days. In addition, the WA DOL will give you a credit for any
sales tax paid to another state if you produce evidence at
the time you register the vehicle.

The WA tax is a compensating Use Tax as it is applied at the
general sales rate. As such, I conclude that if you itemize
your deductions you may add the tax to your other sales
taxes paid (either by actual receipt or using the IRS
tables) and deduct those taxes in lieu of deducting state
income taxes.

--
Alan
http://taxtopics.net

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- quote -

For 2004 and 2005, you have your choice of deducting either
state and local income tax OR state and local sales tax.
There is a chart in Pub 600 of allowed sales tax deductions
in case you didn't keep all your receipts. Sales tax on cars
is an addition to the chart.

--
Don EA in Upstate NY

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T/P in 2003 purchase Auto in Oregon and when he registered
it in Washington had to pay what they claim was Value Added
Tax. I believe they are referring to use tax. Claims he read
some IRC states you can deduct if it is VAT, even though if
purchased in WA would be considered sales tax and not
deductible.

Q1: Deductible?

My reply - No based on one of the criterias being the tax
must be imposed on annual basis.

Am I correct on this?

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