Spokane, WA tab renew fees. What's deductible? Reg Lic, Veh Weight, Prsnlzd plate, Reg Filing, Reg Serv Fee, Plate Tech, DOL Service, State Parks, Spok Trans Ben Dist?

[GeoffreyG · Accepted solution]

Unfortunately, if you live in Spokane, Washington, then none of your state vehicle registration fee is tax deductible.  Please allow us a few moments to explain.

The legal reasons behind this are as follows.  The IRS only allows that portion of a state registration fee that is based on the value of the vehicle to be included toward your other itemized deductions.  Any flat fee portion doesn't count, nor do amounts levied on factors other than valuation.  This is why there are some 20+ states whose residents can potentially benefit from the deduction (including Washington).  But the residents of most other states cannot, as their states do not charge vehicle registration fees by value, and instead charge flat fees only.

As a Washington state resident, the only deductible portion of the vehicle registration fee is the RTA tax.  RTA stands for the "Regional Transit Authority."  It applies only to residents of King, Pierce, and Snohomish counties who live within the Sound Transit District.

For more information on the RTA tax itself, if you are interested, you can read this Washington Department of Licensing webpage:

http://www.dol.wa.gov/vehicleregistration/rta.html

But, as Spokane (and environs) are not within the jurisdiction of the RTA (and so you won't ever pay that regional transportation tax), there is no portion of your Washington vehicle registration fee that is tax deductible on your federal return.

We're sorry to have to tell you that, but at least now you have accurate information.

Thank you for asking this question.

[wdswmn13]

Thank you for the response. I appreciate that. I have used some portion of my renewal fees, in the past. But looks like it's not happening? What is comical, and not, is that we, here in Spokane, pay for a 'ferry' something-or-another fee/tax, for the west side of the state, on our tag renewals. Gee, can't remember the last time I used a ferry over on the coast. Oh! That's right, I've never used a ferry over there..... What a racket!

[GeoffreyG]

Hi wdswmn13:

I understand your position completely, and you're very welcome for the information.  I agree that often the tax laws just don't make good logical sense . . . but that's largely because they're mostly drafted in a political climate, and for reasons other than purely economic policy.  I write that without advocating for any position or taking any particular point of view.  As an income tax professional, though, I long ago learned to embrace the irrational.  Nevertheless, the rules are the rules.  Perhaps in the future, Spokane will be able to have their residents officially added to those in the RTA, and you'll be able to deduct something for the "ferry" charge on your tax return.

Best Regards