Hybrid vehicle sales tax exemption will be ending soon

If you are considering purchasing a hybrid car, you need to take possession of the vehicle by end of July this year to receive the sales tax exception. Also, if you were thinking of leasing a hybrid, you need to do so before July 31st as the sales tax exemption will end after that date. The exemption for vehicles with an EPA highway mileage of at least 40 miles per gallon took effect Jan. 1, but was repealed by the Legislature as part of Engrossed Substitute Senate Bill 6170, which revised several environmental tax incentives. Hybrid vehicles will still be exempt from the 0.3% motor vehicle sales tax, and purchases of new vehicles powered by clean alternative fuels such as natural gas, propane, hydrogen or electricity will continue to be exempt from all sales taxes through Dec. 31, 2010.