(1) The following vehicles are exempt from the payment of vehicle license fees:
(a) Any vehicle owned, rented, or leased by the state of Washington, or by any county, city, town, school district, or other political subdivision of the state of Washington and used exclusively by them;
(b) Vehicles owned or leased with an option to purchase by the United States government, or by the government of foreign countries, or by international bodies to which the United States government is a signatory by treaty;
(c) Vehicles owned or leased by the governing body of an Indian tribe located within this state and recognized as a governmental entity by the United States department of the interior, and used exclusively in its service;
(d) Any bus or vehicle owned and operated by a private school or schools meeting the requirements of RCW
28A.195.010 and used by that school or schools primarily to transport children to and from school or to transport children in connection with school activities. A registration issued by the department for these buses or vehicles is exempt from the motor vehicle excise tax provided in chapter
82.44 RCW;
(e) Vehicles owned and used exclusively by the United States government and are clearly identified by displaying registration numbers or license plates assigned by the United States government if the vehicle is registered and displays license plates assigned to it by the United States government; and
(f) Except for payment of the license plate fee required under RCW
46.17.240, vehicles owned and used exclusively by the United States government and are clearly identified by displaying registration numbers of license plates assigned by the state of Washington if the vehicle is registered and displays license plates assigned to it by the state of Washington.
(2) The department shall assign a license plate or plates to each vehicle or may assign a block of license plates to an agency or political subdivision for further assignment by the agency or political subdivision to individual vehicles registered to it. The agency, political subdivision, or Indian tribe, except a foreign government or international body, shall pay the fee required in RCW
46.17.240 for the license plate or plates for each vehicle.
(3) An Indian tribe located within this state and recognized as a governmental entity by the United States department of the interior is not entitled to register any tribal government service vehicle under this section if that tribe itself registers any tribal government service vehicles under tribal law.
(4) A vehicle registration or license plates may not be issued to any vehicle under this section for the transportation of school children unless the vehicle has been first inspected by the director or the director's authorized representative.
