Author Topic: Washington's sales tax exemption for Oregon residents: file an annual request  (Read 453 times)

Offline Mr. Bill

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This is mostly of interest to Oregonians who live near the Columbia River and occasionally shop in Washington.

Currently, if you're a resident of any state or Canadian province with a sales tax or VAT below 3%, you can buy stuff in Washington to take back home with you, and you won't get charged sales tax at the register.

Beginning 7/1/19, you'll get charged the full tax.  The exemption still applies [in part, see below], but you'll have to file a form with the WA Department of Revenue annually to get reimbursed for your previous year's purchases.

The form doesn't exist yet, but it will include "a description of the item purchased for which a remittance is requested, the sales price of the item, the amount of sales tax paid on the item, the date of the purchase, the name of the seller and the physical address where the sale took place, and copies of sales receipts showing the qualified purchases."  You'll also have to submit "proof of the person's status as a nonresident at the time of the purchase", in the form of "one piece of identification such as a valid driver's license from the jurisdiction in which the out-of-state residency is claimed or a valid identification card which has a photograph of the holder and is issued by the out-of-state jurisdiction", which "must show the holder's residential address and have as one of its legal purposes the establishment of residency in that out-of-state jurisdiction."

The exemption will henceforth only apply to the state portion of the sales tax (6.5%), not the local portion (an additional several percent).

Refunds below $25 will be ignored, so don't bother applying unless you've made at least $385 of qualifying purchases in WA during a calendar year.

Legislative report summarizing the bill


Offline archer

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lovely... a bs money grab.....

Offline Smurf Hunter

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I remember when I started driving in the early 1990s, when you were shopping for a used car, one with recently renewed tabs was a bonus, as it meant you didn't have to pay for as many months.  Today, if I buy a car that was renewed last month, instead of having 11 months of pre-paid, I have 2 weeks to register.  Another aspect is the sales tax.

Car sells new for $30,000 - buyer pays $3,000 in sales tax
10 years later the car sells for $10K to a private party, $1000 in sales tax is paid by the new buyer

Why would the same state need to collect sales tax twice for the same vehicle?

Sorry to digress, but WA is getting stingy.

Offline Stwood

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Most probably won't go through the motions to receive so little back. The state is probably hoping for that.....

On the sales tax paid on cars, Missouri collects sales tax each time a car is sold. If it's sold every 6 months during it's life, each buyer pays sales tax. Yea.....

Offline David in MN

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Tax law always makes me think of Monty Python. It's perfectly simple after all that one should mover his clothes to the lower peg after lunch unless his brother is getting a haircut before the afternoon match...

This VAT and taxable goods stuff is just insane. If your tree gets hit by lightning and falls you have a nuisance to clean. If it happens to me I have taxable inventory for my woodworking business. If it sounds mentally insane it is. My in-laws were never taxed on their cedar deck but when I took it apart the reclaimed cedar became taxable inventory.

And honestly who is going to fill out forms in octuplicate and spend $17 in postage to get a refund of $28 mailed out in 8 months? My BS detector is in the red.