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State Department changes tax policy for diplomats

November 23, 2010
The U.S. State Department has issued new procedures, effective immediately, for allowing a Diplomatic Tax Exemption on the official or personal purchase of an automobile. Before the transaction is completed, the Office of Foreign Missions must clear each vehicle purchase for tax exemption. Cliff Seagroves, diplomatic tax exemption officer, said that for dealerships to prove to taxing authorities that a vehicle was/is eligible for diplomatic tax exemption, the dealer must obtain and maintain the following documentation: • Obtain a letter of authorization for vehicle tax exemption from the Office of Foreign Missions by calling 202-895-3563 or 202-895-3500, or the nearest OFM Regional Office. • Make a copy of the foreign diplomat's ID. Existing vehicle registration procedures do not change as a result of this new policy. For more on this issue, visit the State Department on-line at 23330.htm