TAXES: If working in Oregon, but living in Washington ... (Vancouver: low income, sales)

[HeyJude408]

If you work in Portland where there is state income tax, but reside/own a home in Vancouver, WA, do you get a complete refund on state income tax deducted from your pay?

[notnamed]

No. There is very little reason to live in WA and work in OR. Just subjecting yourself to that commute. If you're paying OR income taxes may as well live there. If you live OR work in Oregon you owe their income tax.

The tax haven is to live and work in WA but shop in OR.

[StealthRabbit]

OR income tax rates are very high (9%), but you only pay on Adjusted Gross (Fed taxes), so if working ONLY for wages, and in a lower tax rate (<38%) your OR income tax will probably work out to about 5% of earnings made in OREGON ONLY.
Run some scenarios using each state as domicile on your tax software.

Usually it is best to live where you work / gain income. If you have an internet business or similar with HIGH INCOME and want low income taxes, yet remain a USA citizen, it is fairly common to change your tax domicile in a US Protectorate. (follow the rules!)

Oregon needs your income tax money. WA needs your Sales Tax money. Both rape for Property tax. (varies by County in each state.)

[notnamed]

WA has the lowest property taxes I've ever seen. 1/2 to 1/3 rate of other places with similar valuations.

[StealthRabbit]

Originally Posted by notnamed

WA has the lowest property taxes I've ever seen. 1/2 to 1/3 rate of other places with similar valuations.

YMMV, I pay $43 / day (Up from $3/day) to the county for the privilege of living in the home I built brick by brick for under $100k. I have another investment home 1 min away that has the same cost basis and is taxed at 1/10th my primary residence (different tax area).

$43 / day home is Nothing fancy,... house is just getting older and older (28+ yrs, so would really like a new roof this yr, but I am too old to do it again,,, this time around). Structure has done very well to withstand 28 yrs of 80+ MPH winds and freezing rain! (No leaks yet!) It was a 'HomeSchool Project' where kids "Practiced" before I made them design, permit, and build their own homes from scratch. They sold due to high taxes (Much better use of funds in WA to invest your RE dollars in cash flowing commercial props, and pay 'rent' with the excess cash flows)

I have always been able to successfully challenge my WA Property Taxes on commercial props, but only gained minimal relief on residence (Not worth the trip to Olympia every yr). My property taxes went up more than 25% for many yrs in a row, If my house burns to the ground, I will owe $15/ day taxes on the dirt. (I paid only 3x that much to buy it). I PAY the ENTIRE price of my house back to my WA county every 6 yrs.

Some of my Prop Taxes in other EXPENSIVE states (Tex and FL) are CHEAP compared to WA (YMMV.)

I certainly hope so!

BTW: I sold 4 Camas income Properties this yr, due to HUGE taxes (ruining my cash flows) My Senior Renters were NOT gonna be able to pay the increases in my taxes, so I had been eating it for 7 yrs. I had enough of Camas Taxes and utilities. Poof, GONE! (tenants (of over 15 yrs) will be gone too, so sad)

Grocery carts and living under a bridge.... Waterfront view, no property taxes (Works for Thousands in our region)

For $43 / day... like Motel 6...Clark County should;
1) Leave the light on (pay utilities HOWEVER warm or cold I like it)
2) Furnish Breakfast
3) Do the laundry
4) Wash the sheets
5) Vacuum daily
6) Do all my Maintenance
7) Pay the insurance
8) Bear the capital investment risk!

County Assessor / Appraiser said "Sell it to a rich Californian, that is what MY elderly parents did...".... I did not pound every nail to sell it, I planned to LIVE in ti!

[notnamed]

Yeah owning a real estate empire anywhere with quickly increasing values will be expensive. But even more so somewhere with 3x the rate.

That's the unfortunate truth of "owning". It's never really yours, just renting it from the gooberment.

You've kept your rents vastly below the market value haven't you?

Having big plots of land out in the country seems to be a dream getting more expensive everywhere. But your typical new build on a postage stamp lot with neighbors right on top of you experience, property taxes are quite cheap here.

[Slowink]

The question that has been rumbling around in my head is: If I bought a home in Vancouver, and I cross the river to Oregon and I bought groceries, a car and an R.V., would I be required to pay the sales tax on the items purchased in Oregon to the state of Washington?

[notnamed]

You will have to pay tax on the car and RV as that will come up when you register.

That Costco run for groceries though, it's more of an honor system on you to file and pay the use tax.

[StealthRabbit]

within the allowed law (and be sure to comply with WA law and your Insurance company requirements...You can have your MT LLC own your vehicles (no inspections, no emissions, no sales tax) An OR LLC could do the same, but more apt to be cornered by WSP on that issue. (if in SW WA)

You are required to pay WA 'Use tax' on the following:
Do you owe use tax?

Any item of tangible personal property put to use as a consumer in this state may be subject to use tax.

Examples include:

artwork
tools
computer equipment
furniture
clothes

It also includes:

private party automobile purchases (use tax on vehicles is normally paid to the Department of Licensing at the time of registration)
purchases from garage sales, estate sales, etc.

[texasdiver]

Originally Posted by Slowink

The question that has been rumbling around in my head is: If I bought a home in Vancouver, and I cross the river to Oregon and I bought groceries, a car and an R.V., would I be required to pay the sales tax on the items purchased in Oregon to the state of Washington?

Sometimes up to half the cars parked at the Ikea, Home Depot, and Costco just across the 205 bridge in Oregon have WA plates. I think it's a pretty safe bet that close to zero percent of those shoppers are voluntarily submitting sales tax to WA.

On the other hand, you can't get out of paying vehicle tax. Sure you can buy a car or RV in Oregon, lots of WA residents do that as not every brand of car or RV even has dealers in Vancouver. But you will pay the tax when you go to register the car in WA and get WA plates. No way around that unless you want to commit actual fraud by claiming an OR residence and putting OR plates on the car. People who do this sometimes do get caught and pay hefty penalties.