Sales Tax When Buying A Car (insurance, home, schools)

[christi1981]

If you are a washington resident can you still buy a car in oregon and avoid the sales tax?

Christi

[StealthRabbit]

Not if you want to license it in WA. (that's when they will collect)

You can license it in OR if you have a residence there,(and preferrably a Drivers License). BUT DOL requires proof of insurance for that particular VIN at time of issue. Insurance is cheaper in OR because of this rule, and thus 40% of drivers at not cruising around without insurance (as they are in WA, so my agent says). The flip side in OR is the 2 yr license plate make it really ez to buy a used junker with current plates, and not insure, or title or register (tho this is not legal) Lots of folks do this, as I frequent the 'auctions' where they sell in excess of 300 cars / week just at the 'towing' (abandoned vehicle) auctions in PDX. Unfortunately the minimum bid is now $75-$100 due to high scrap prices. I'm glad I got most of my fleet for $35 each, I can't imagine paying a few hundred dollars for a car!! (sales tax is not a big issue for this WA resident...)

[Donn2390]

janb, I don't understand what you are saying here;
"The flip side in OR is the 2 yr license plate make it really ez to buy a used junker with current plates, and not insure, or title or register (tho this is not legal) Lots of folks do this, as I frequent the 'auctions' where they sell in excess of 300 cars / week just at the 'towing' (abandoned vehicle) auctions in PDX."
What are you getting out of buying junkers with current plates? Are you saying you're using the junker plates on newer, most expensive to license cars? Even if you could pull that off, you have to have a fleet of junkers parked in your yard?
What am I misssing here?

[diggitydot]

Originally Posted by christi1981

If you are a washington resident can you still buy a car in oregon and avoid the sales tax?

Christi

Hey Christi,

You can purchase a vehicle in Oregon and not pay sales tax when you do so, because Oregon doesn't have one. But if you live in WA and need to license the vehicle that you purchased in Oregon in Washington, then you'll pay the tax for it when you license it.

Either way, they'll get it from you if you purchase a vehicle in Oregon. This isn't like buying new furniture where you can avoid taxes on a large ticket item. If you buy a vehicle in Oregon and reside in Washington, you'll still pay the tax.

One thing to keep in mind: There are LOTS of license cheaters who purchase and license their vehicles in Oregon to avoid the taxes in WA. And Clark County has a task force to deal with it. Trust me, they'll get their taxes. Officers even stake out local schools and on ramps to the freeways going into Oregon, taking note of any out-of-state plates. They then investigate to see where the owner lives. If found to live in WA, they'll give you a warning with a notice to rectify the situation. If you don't do it within the time frame permitted, you'll get a ticket. If you keep resisting, you'll eventually end up paying more in the tickets than if you'd just done the right thing and paid the tax in the first place.

[StealthRabbit]

Originally Posted by Donn2390

janb, I don't understand what you are saying here;
...
What are you getting out of buying junkers with current plates? Are you saying you're using the junker plates on newer, most expensive to license cars? Even if you could pull that off, you have to have a fleet of junkers parked in your yard?
What am I misssing here?

Not me ... I wouldn't think of doing such a thing...

but... lots of bidders buy the cars with current plates and just drive them (Or use the plates on something else). When you get tired of that car, or it runs out of gas, you just leave it in front of someone elses house, and it ends up back at the auction in a few weeks. (after all it is not registered to you ). It happens all the time. It is nice to see the older cars get such use, as it saves a lot of precious resources. I've been 'recycling' - getting 50 mpg since 1976, (and I don't require dinosaurs / opec (I use SVO or brew bio-diesel). Not sure where these 'Prius' cats have been all this time...

It is fun to see the huge number of cars that 'drive' away from the 'abandoned vehicle' auctions. people are pretty creative, besides... one can never have enough 'junker' cars in your front yard. It does wonders for the tax assessor, and it keeps the optical recognition software from the county 'flyovers' active, and it is REAL popular with 'The Friends of the Gorge'

[Ultrarunner]

I know a couple from California that have a summer home in Washington and keep a jeep with California Plates in the Garage.

They say it is cheaper to fly up from Southern California and keep a car in Washington than to drive.

At one time they looked into getting Washington Plates and there was a problem since they have California Drivers Licenses. Anyone know why they would have a problem? I don't think the jeep has been in California for a couple of years.

[MissssBrooke]

Hello,

I am currently thinking about buying a car in Washington with my dad. I am an Oregon resident and the car would be in my name. I was wondering if I was still tax exempt and what it would be like if I brought the car back to Oregon. Would I still just have to pay the fees to get Oregon plates and that type of thing. Or how does that work?!

Thanks so much for you help,

Brooke

[dachmom]

I believe if you show the dealer your current Oregon driver's license you won't have to pay sales tax. Yes, you would have to pay to license the car in Oregon. If you know where you are going to buy the car from, call the delearship and ask them what kind of "proof of residence" you need to bring with you to prove that you are an Oregon citizen and don't have to pay sales tax.

[Nell Plotts]

The smartest way to buy is to have the dealership deliver the car in Oregon.

[PNW-type-gal]

The other issue is that your state's lemon laws don't always protect you when you buy a car in another state and car dealers can't issue a temporary plate that's valid in another state. They may stick one on the car, but it isn't valid in your home state, and if you get pulled over odds are you'll get a big ticket.