Sales Tax (Spokane, Poulsbo: rent, buyers, utilities)

[LMB]

My brother from Oregon was visiting yesterday and we did some Christmas shopping in downtown Poulsbo. He bought gifts at several different stores and before paying, he always mentioned that he was an Oregon resident (verifying with his driver's license), and he wasn't charged sales tax. One time the total was mistakenly rung up without deducting the sales tax, and wow, quite a difference in price after it was corrected! I knew there is no sales tax added if products are purchased in Oregon, but I hadn't heard of not being charged tax if you're an Oregon resident. Is that common knowledge or just a newbie question?

Thanks!

Lynn

[allforcats]

Common knowledge. Proof of Oregon residence while purchasing in WA does produce no added sales tax.

[scirocco22]

Is that just for Oregon residents? ...or for any state that has no sales tax?

[diggitydot]

Originally Posted by scirocco22

Is that just for Oregon residents? ...or for any state that has no sales tax?

Usually just for Oregon residents as an incentive to get them to shop in WA.

[LMB]

Really? How interesting! Maybe that helps make up for the WA residents who go to OR to shop for big ticket items!

[scirocco22]

Ah, thanks, diggity.

I thought I heard it applied to Montana too. Montana doesn't have sales tax and I thought somebody said that they could come into Spokane and buy stuff without being charged sales tax.

[thirtysomething]

It should be for all states that do not have sales tax. Of course picture ID/license from the taxless state is required.

[StealthRabbit]

It can depend on the business, as it is fully optional for them to grant the benefit of no sales tax.

It is pretty prevalent in border regions, but not required.

Most often is is extended to all states with out sales tax, which include Alaska, Delaware, Montana, New Hampshire, and Oregon (with proper ID...)

ugh.... now you remind me I need to file my last qtr business form with WA, AND pay up my sales tax collections. That will be good for Christine's Christmas, and I know she appreciates it... The state form has a few more hoops to jump through in reporting sales to non-sales-tax states (which I don't do, since I am a service provider to residents, and my work is performed in WA state on real properties... I'm not sure how an out of state land owner would feel about me taxing them!!! I hate to think of that... I'm really wondering about a new business that I'm starting that will be also operated in OR as an 'alien' corp, largely due to WA double taxing this product (lobbyists...), and majority of target customers being located or transiting in OR...they won't tolerate double taxing )

[icainc]

If you provide ID that you are from another state you are not require to pay sales taxes. If you live or reside here even on a temporary basis, have a driver license, rent a home, pay for utilities, run a business, collect public assistance or anything that could or would show that you have established a permanent or temporary residence in the State of Washington then you are required to pay sales tax.

[scirocco22]

Originally Posted by icainc

If you provide ID that you are from another state you are not require to pay sales taxes. If you live or reside here even on a temporary basis, have a driver license, rent a home, pay for utilities, run a business, collect public assistance or anything that could or would show that you have established a permanent or temporary residence in the State of Washington then you are required to pay sales tax.

Clarification is necessary in the above statement from how I understand the law:

First, a valid "buyers retail exemption certificate" is required ...not just an ID card.

Second, only those visiting from the following jurisdictions are eligible:

Alaska
American Samoa
Alberta
Colorado
Guam
New Brunswick
Delaware
Puerto Rico
Newfoundland & Labrador
Montana
Virgin Islands
Nova Scotia
New Hampshire
Northwest Territories
Oregon
Quebec
Nanavut
Yukon Territory
Commonwealth of North Mariana Islands

According to the Washington State Department of Revenue website, these are places which do not impose a three percent or more retail sales tax. Only visitors from these places are eligible for the sales tax exemption certificate that allows them to make purchases without paying sales tax when visiting Washington.

Otherwise, visitors must pay sales tax. This has been in place since 2003. Before that, yes, I heard all that was necessary was showing an out of state ID.

Please visit the Washington State Department of Revenue website for more information.