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The article has been updated successfully but requires approval before it is published.Is anyone exempt from paying vehicle tax?
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Yes, some people are exempt from paying vehicle tax. It depends on the state and the situation. Some states, like Washington, are currently offering exemptions on the Motor Vehicle Sales/Use Tax on new hybrid, electric, or alternative energy cars until January 1, 2011.
Certain federal government employees may also get their personal and official vehicles exempted from sales tax, as can some state, county, or city officials.
Those transferring a car title to a relative are usually exempt from vehicle tax. Michigan, for example, lets you transfer a vehicle to a spouse, parent, sibling, child, step sibling, parents, or child, or legal guardian or legal ward, without paying vehicle tax. States sometimes vary on their definition of a relative, so check with your state first.
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