Oregon Sales Tax

A sales tax is a consumption tax that helps fund government services and programs. It is also a necessary component of e-commerce compliance. Learn more about Oregon's unique tax structure and the role of sales taxes.

Oregon does not levy a general sales tax, but the state has a variety of other taxes, including personal income taxes and corporate excise. Moreover, the state also collects vehicle use and fuel taxes and estate and inheritance taxes. A financial advisor can help you navigate these taxes and understand their impacts on your finances. While Oregon does not have a general sales tax, it is one of the few states that requires out-of-state online sellers to collect and remit local taxes based on nexus rules. These rules may change in the future as a result of the South Dakota v. Wayfair ruling, so it is important to stay informed about changes in sales tax laws. Although Oregon does not have a sales tax, the state does collect a one-half percent Vehicle Privilege Tax on the sale of taxable vehicles. Dealers are responsible for collecting and paying this tax to the state but may pass it along to the consumer.

Oregon State Taxes

Even though Oregon does not impose a general sales tax, residents and businesses are still charged for other types of taxes, such as federal taxes on airline tickets and local taxes on hotel and rental car purchases. In addition, Oregon has several other taxes on fuel, cigarette, and alcohol purchases. It also has an estate tax for those who own properties valued over $1 million.

The state also has a vehicle use tax, assessed on new vehicles purchased outside the state and titled and registered in Oregon. The Oregon Business Registry has developed a resale certificate that buyers may provide to out-of-state sellers to exempt them from the state’s sales, use, and transaction tax.

Oregon Tax Exemptions
Oregon Sales Tax 1

Oregon Tax Exemptions

Oregon is a member of the Streamlined Sales and Use Tax Agreement. This interstate consortium works to simplify compliance with sales tax laws. However, the state still has many rules and exemptions that may differ from other states. For example, some cities and counties have their own local sales and use taxes. In addition, some industries and areas are exempt from sales tax. This can make it confusing for out-of-state buyers. However, out-of-state sellers should be familiar with Oregon’s sales tax laws when selling to residents. They should use a tax-exempt form to avoid collecting the wrong amount of sales tax.

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