Tax & Accounting Blog

Oregon Shoppers May Pay Sales Tax In Bordering Washington Cities

Indirect Tax, ONESOURCE, Sales and Use Tax February 20, 2012

Washington Senator Cheryl Pflug has proposed SB 6061, which would make Oregonians, who currently pay no sales tax, and who shop in southwest Washington, pay a retail sales tax in an attempt to raise state revenues to the tune of an estimated $18 million.  In bordering city Vancouver, WA, for example, the combined state and local rate is 8.2%.  Shoppers would pay the tax initially, but then can apply for a refund exempting them from the state rate of 6.5%, but would still be obligated to pay Vancouver’s 1.7% rate.  To qualify for the refund, a shopper would have to prove out of state residency, totals would have to be over $25 (about $384 of spending), and one could only apply once a year.  The bill has mixed support.