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Senate passes
Schmidt bill to give tax break for "clean and alternative
fuel cars"
April 15, 2005
OLYMPIA
- The Washington State Senate today
passed a bill giving a sales and use tax exemption to certain
automobiles that are considered “clean” or are fueled by
alternative fuels.
Sen. Dave
Schmidt, R-Mill Creek, sponsored the bill.
“This
is a win-win situation for the consumer, the environment and
the car dealerships,” Schmidt said. “The consumer
benefits by paying less for an automobile, the environment
obviously benefits from less pollution from the cleaner cars,
and the auto dealers benefit because people will be coming
from out-of-state to purchase these tax-exempt vehicles.”
The
tax exemptions found in Second Substitute Senate Bill 5916
applies to both the state’s portion of the sales and use tax
as well as a local government’s portion.
“Sales
and use taxes levied by the state and local governments vary
from around 7 percent to about 9 percent,” Schmidt said.
“If you’re talking about a $20,000 car, that’s a big
chunk of money! I know a lot of people out there who
would immediately consider buying a new, cleaner-burning car
if they could save a couple of grand.”
The
proposal applies to new passenger cars, light-duty trucks, and
medium passenger vehicles which are exclusively powered by a
clean alternative fuel, or automobiles that utilize
so-called “hybrid” technology with a rating of at least 40
miles per gallon.
“I
believe one of the best ways to reduce auto pollution in the
Puget Sound region is to reduce or eliminate the gridlock and
the traffic jams,” Schmidt said. “The amount of time
cars spend idling on our highways is a big problem and we’re
working to improve our transportation infrastructure. But in
the meantime, this is one step we can take to help our
environment while helping the consumer and the dealer at the
same time.”
Schmidt’s
legislation passed the Senate today on a vote of 44-2.
It now goes to the House of Representatives for consideration.
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