▪Trade-ins: If you trade-in a like-kind
item to reduce the amount you pay
for the tangible personal property,
sales tax is due only on the amount
due after the value of the like-kind
trade-in is subtracted.
For example, you purchase a car for
$20,000. The dealer accepts your
current car as a trade-in valued at
$5,000. Therefore, you owe sales
tax on $15,000. NOTE: If the dealer
gives you $5,000 cash instead of
subtracting that amount from the
new car price, then you have not
traded-in your vehicle. In such a case,
sales tax is due on the full $20,000
price of your new vehicle.
(WAC 458-20-247)
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