About sales tax in Oregon
Oregon
doesn't have a general sales or use/transaction tax. However, Oregon does have a vehicle use tax that applies to new vehicles purchased outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon.
Oregon uses the Oregon Business Registry Resale Certificate for Oregon buyers who buy goods outside of the state and then resell them in Oregon. Don't file this form with us.
Give the completed form to the out-of-state seller at the time of purchase. The out-of-state seller may accept this certificate as a substitute "resale certificate" and exempt the transaction from the state's sales/use/transaction tax, but they are not required to accept it. Some states, including Washington, may require you to use their state-specific form or provide additional information.Oregon does not have a Sales Tax Exempt certificate. If you're an Oregon resident working or shopping in a state with a sales tax and want information about that state's sales tax policy regarding nonresidents, consult that state's taxation agency.
Oregon law doesn't allow you to reduce your Oregon taxes because you paid sales tax in another state.
The Wayfair Decision and online sales tax
On June 21, 2018, the U.S. Supreme Court ruled a state may collect sales tax from taxpayers located outside the state if they are selling to state residents and there is a sufficient connection between the taxpayer and the state. For example, under the South Dakota law, a company must collect sales tax for online retail sales if:
- The company's gross sales exceed $100,000, or
- The company conducted more than 200 transactions to South Dakota.
Many other states are formalizing guidance through laws and regulations regarding collecting sales tax on online sales.
Impacts to Oregonians shopping online
The Wayfair decision doesn't affect Oregonians purchasing goods or services online because Oregon doesn't have a general sales tax.
Oregonians purchasing goods or services online don't generally owe sales tax to another state, but exceptions may exist for other taxes. For example, when making online travel arrangements, you'll be charged federal taxes on airline tickets and may be charged state and local taxes on your hotel or rental car.
Impacts to Oregon businesses selling products online
The Wayfair decision does affect Oregon businesses selling products online to buyers in a state, such as South Dakota, that requires online retailers to collect sales tax. These Oregon businesses will need to collect and pay sales taxes to the sales tax states, if they meet the requirements.
If you're an Oregon online retailer with customers located in a state with sales tax, we recommend you contact the state directly or seek legal advice on how to proceed with collecting and remitting sales taxes to those states with a requirement to collect sales tax on online sales to consumers in their state.