I'm filling out my taxes and am wondering about the following: In 2012 I bought a new car in OR, but I live in WA. When registering it with the DMV/DOL, I paid an 8.7% "excise tax" (I believe it's called) when registering the vehicle. Does the IRS approve this? I guess more people have dealt with this in the southern WA regions. I prefer to not get myself into all kinds of audit troubles.