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REV 32 2511 (11/2/21) Use Tax Facts for Vehicle Transactions Washington residents have the responsibility under Revised Code of Washington (RCW) 82.12 and Washington Administrative Code (WAC) 458-20-178 to pay Use Tax on the purchase of a vehicle when Retail Sales Tax has not been paid, or where an exemption is not available. Use Tax is calculated at the same rate as Retail Sales Tax and is usually paid to the Department of Licensing (DOL) when the vehicle title is transferred. How is use tax determined? Use Tax is calculated by multiplying the fair market value (FMV) of the vehicle by the use tax rate. The FMV is determined as nearly as possible according to the retail selling price of similar vehicles in the same condition. When the purchase price reflects the FMV of a vehicle, Use Tax is based on what you paid. The purchase price is accepted as the vehicle’s value if the purchase price is no more than 20% below the fair market value, or the fair market value is less than $7,500 (WAC...