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14-Sep-2008



PHOTO CAPTION: Toyota Camry Hybrid would not qualify for Washington State sales tax exemption.

Washington State to Give Sales Tax Exemption on Hybrid Cars

The tax break only covers cars and trucks getting at least 40 highway mpg, which includes the Prius and hybrid Honda Civic, but not hybrid SUVs or the Toyota Camry pictured here.

A new sales tax exemption that encourages Washington car shoppers to choose hybrids and alternative-fuel vehicles will save them an estimated $18.6 million over the next two years.

The savings provide an extra incentive for consumers to trade in gas guzzlers, a trend that's already in full bloom.

"It's probably not going to make that big of an impact on hybrid sales in Washington," said Bill Soholt, general sales manager of Toyota and Honda of Seattle.

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