Some electric vehicle makers can run Washington dealerships

A qualifying electric vehicle maker may own, run, or control a Washington dealership selling certain vehicles. The exception covers makers that meet the listed requirements and dealerships selling only the specified vehicles. The maker must meet all listed qualifications, including U.S. incorporation, no history of a dealer franchise agreement, and at least one Washington service facility as of January 1, 2026. It must produce only battery electric vehicles, with at least 300 registered in Washington before January 1, 2026. Its dealership may sell only its own makes or lines that licensed independent franchise dealers do not sell new. It may also own or work with companies that finance, lease, or service its vehicles. It may not distribute vehicles for a maker barred from acting as a dealer, or become majority-owned or controlled by one. The law took effect June 11, 2026.

The state charges a $40 title application fee when a dealer or lessor completes a vehicle sale or lease, and directs part of the fee to transportation and electric vehicle rebates. The $40 fee applies to a new or used vehicle sale or lease completed by a dealer or lessor. Other title applications cost $15. Of the $25 portion specified for distribution, 35 percent goes to the electric vehicle account for instant rebates, and 65 percent goes to the multimodal transportation account. The rebate program depends on money being specifically appropriated for it. Only people who meet the state definition of vulnerable populations may receive rebates. The $40 fee applies from October 1, 2026, through December 31, 2036. After that, the fee for dealer sales and leases is $15.

The state must deny certain dealer license applications and revoke a qualifying maker’s dealer license if it stops meeting the eligibility rules. These rules apply to makers seeking or holding a dealer license, and to makers barred from acting as dealers. The department must revoke the license within 30 days after the maker stops meeting the eligibility rules. A maker barred from acting as a dealer and not eligible for an exception faces a $10,000 penalty for each retail sale or lease completed in Washington after the section takes effect. The penalty applies to retail sales or leases completed after the section takes effect. The department must revoke a license within 30 days after the maker stops meeting the eligibility rules.