Do Oregon Residents Pay a Sales Tax on Cars in Washington?

July 2, 2019

The short answer? No. They do not, however, the issue is a bit more complicated than that. But, rest assured if you are an Oregonian you will not have to pay Washington sales tax when you purchase an automobile in Washington. Additionally, when you get your service done or purchase parts in Washington at a Dick Hannah Dealership, we will pay the tax on those for you. 

Starting July 1st, 2019 Washington has done away from the tax exemptions that were offered to Oregonians who showed their Oregon ID at retail locations. The change now is that you will want to hold onto those receipts to submit them for a refund at the end of the year. 

There are a few things that are not affected by these changes, and one of those things are automobile purchases. Also unaffected are campers and trailers, watercraft, farm machinery, and implements, and vessels. 

When purchasing an automobile in Washington you will want to make sure you have an Oregon ID as well as any other pieces of documentation that show that you are, in fact, and Oregon resident. If you are a Washington resident and attempt to purchase a car with an Oregon ID you will have to pay taxes when you register your vehicle. 

The Washington State Department Of Revenue has more information on their site going into more detail about exempt vehicle sales. 

For everything that isn’t noted above as a vehicle, you are going to have to pay the Washington sales tax. But, you can request reimbursement for some of it. 

In order to be eligible for reimbursement of sales tax your purchase must be the sale of tangible property, digital products, or digital codes. Additionally, the purchases items will be used only outside of Washington State, and lastly, you must be able to establish residency outside of the state. 

When making purchases in Washington anything that cannot leave the state will not be eligible for reimbursement. This includes things like hotel stays, repair services, recreational activities, and personal services like tanning and tattooing. For more information check out the Washington State’s Department of Revenue site for Sales tax exemption for nonresidents.

You will be able to begin requesting refunds in Jan. of 2020. You will need to provide copies of the receipts and proof of residency. And finally, you will need to make sure that your request is for $25 or more, otherwise, your request will be denied. 

So if you are an Oregon resident enjoy not having to pay sales tax on cars bought in Washington and parts and services done at Dick Hannah Dealerships, but if you are a Washington resident enjoy not paying Oregon Income tax.