Sales and use tax rate for leased vehicles rose Oct. 1 in DC

Effective October 1, the Washington, DC, Office of Tax and Revenue increased the sales and use tax rate to 10.25% from 10.00% for leased vehicles.  Please adjust your systems accordingly.

 

Neither WANADA nor DC DMV was notified of this change and only learned of it when finance companies began encountering difficulties processing lease paperwork for DC residents. Note that, while the excise tax on vehicle sales is processed through DC DMV, the use tax for leases is processed through the DC Office of Tax and Revenue. WANADA dealers with questions about the new arrangement in DC may contact John O’Donnell, or Joe Koch in the  WANADA office (202)-237-7200), or directly by email  jod@wanada.org or jk@wanada.org.

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