Sales Tax Exemption for Hybrids Ends Soon

By dancurranjr On May 28th, 2009

irsThe states sales tax exemption for most hybrid cars will end in a few months.

The sales tax exemption for cars with highway mileage of at least 40 miles per gallon took effect Jan. 1, but was repealed during this year’s legislative session. The exemption ends Aug. 1.

Hybrid vehicles will still be exempt from the separate 0.3 percent motor vehicle sales tax until Jan. 1, 2011. New cars that run on fuels such as natural gas, propane, hydrogen or electricity will continue to be exempt from all sales taxes through Dec. 31, 2010.

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