Bill > SB5072

This bill clarifies the tax treatment of abandoned vehicles sold by registered tow truck operators at public auctions. Currently, such sales were not explicitly defined in tax law, but this legislation specifies that these vehicle sales should be treated as sales of tangible personal property rather than as towing or storage services for tax purposes. Registered tow truck operators must now collect applicable sales taxes when selling abandoned vehicles at public auctions or to licensed vehicle wreckers, hulk haulers, or scrap processors. The bill allows tow truck operators to deduct any surplus proceeds that must be transmitted to the Department of Licensing. The legislature also explicitly notes that licensed auto wreckers, scrap processors, and hulk haulers will generally continue to make wholesale purchases of abandoned vehicles without owing sales tax. The changes will take effect on January 1, 2026, providing clarity and standardization for how these vehicle sales are taxed in Washington state, ensuring that appropriate sales taxes are collected while maintaining existing practices for vehicle recycling businesses.

Budget and Finance, Transportation and Infrastructure

https://app.leg.wa.gov/billsummary?BillNumber=5072&Year=2025&Initiative=false