Do you have to tell the state you sold it?
Yes. Within 5 days, and it is an obligation
You are legally obligated to submit a Report of Sale within 5 days of the sale date. Filing protects you from liability for towing charges and for civil and criminal liabilities incurred by the new owner. The list of things that count is wide — selling privately, on consignment, out of state, trading to a dealer or a private party, gifting, donating, giving to a wrecking yard, turning it over to an insurer, or simply disposing of it. Filing online is processed immediately. A dealer may file for you on a trade-in, but DOL says it remains YOUR responsibility to confirm it was submitted.
Source: WA DOL, Sell a vehicle, step 6