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so i work in retail in california, and every once in a while we'll get customers from oregon. since they are purchasing goods in OUR state, they have to pay our state and local taxes, and they claim that being a resident of oregon makes them exempt to all taxes anywhere they go.

do other states in the area (idaho, washington, etc.) honor the no-tax thing? why do some people from oregon think they won't have to pay california's tax even though they're shopping in california?

2007-09-26 13:31:31 · 3 answers · asked by west_xylaphone 3 in Business & Finance Taxes United States

3 answers

The taxes are imposed by the states on transactions within that state. Oregon won't let us Californians pump our own gas so we will repay the favor by making Oregonians pay sales tax while they are here.

On the other end, technically, if a California resident purchases anything in a state with a lower sales tax rate than their own Including zero in Oregon), they are supposed to report the additional tax on their state tax return.

2007-09-26 17:47:40 · answer #1 · answered by Anonymous · 1 1

Apparently these people are clueless as to how sales tax works. If they buy things in Oregon they don't pay tax - if I, as a PA resident, travel there and buy something, I don't pay sales tax either since Oregon doesn't have sales tax (although depending on what it is, I could be subject to a PA use tax). But an Oregon resident buying something in a state that does have a sales tax has to pay it.

2007-09-26 22:48:58 · answer #2 · answered by Judy 7 · 4 1

Washington honors the tax exemption for residents of states like OR and AK that don't have sales tax. They do have to pay for things they consume here like meals in restaurants and gas.

2007-09-26 20:36:49 · answer #3 · answered by shipwreck 7 · 2 2

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