Hybrid vehicle sales tax exemption ends Aug. 1

Hybrid vehicles will still be exempt from the 0.3 percent motor vehicle sales tax until Dec. 31, 2010. Purchasers of new hybrid vehicles will need to take possession by July 31 to receive the sales tax exemption, according to Mike Gowrylow of the state Department of Revenue.

Lease payments on previously qualifying hybrids will become subject to sales tax after July 31, he said.

The exemption for vehicles with an EPA highway mileage of at least 40 miles per gallon took effect Jan. 1, but was repealed by the Legislature as part of Engrossed Substitute Senate Bill 6170, which revised several environmental tax incentives.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 percent motor vehicle sales tax, and pur- chases 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.