Opens in a new tab

Will sales taxes come between Washington and Oregon shoppers?

February 7, 2012

Washington and Oregon have been good neighbors. But a change in sales tax collection could put a strain on that friendly relationship.

Washington has no income tax. The Evergreen State's 6.5 percent tax on retail sales is its principal tax source.

Shoppers who come up from Oregon, however, don't have to pay Washington's sales taxes. To get tax-free treatment, Oregonians simply show their state IDs and Washington businesses don't charge them sales tax on their purchases.

This courtesy is extended to Beaver State shoppers because their home state doesn't collect a sales tax. Actually, the same tax-free treatment is given to others from locales with no sales tax.

But in these tough economic times, a couple of Washington State Senators think the state should be collecting as much revenue as possible from everyone.

Sens. Cheryl Pflug and Ed Murray, both members of the state Senate's Ways and Means Committee, introduced a bill that to change Washington's nonresident sales tax exemption into a tax refund program.

Under S.B. 6061, all shoppers regardless of where they live would pay Washington's and local sales taxes on their purchases in the state. 

If they spend at least $384 within Washington's borders in one year,they then could go online to apply for a refund the state's portion of the tax. The municipalities would get to keep their tax collections.

Car purchases would be exempt from the change, but the move to refund instead of no tax collection would apply to all other sales transactions.

Pflug acknowledges that it would cost Oregon shoppers who visit Washington and that it would be a bit of a hassle to apply for a sales tax refund.

But Washington is facing a $1.5 billion budget shortfall and estimates are that the sales tax bill could bring in $18 million.

On big purchases it would be worth it, notes KVAL/CBS in Vancouver, but some Oregonians probably wouldn't bother to get their tax money back.

And some Washington retailers along the states' borders worry that it might cost them some customers.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
How to avoid being haunted by ghost tax return preparers

October 28, 2026

Some ghosts this Halloween are cool trick-or-treaters. But when it comes to taxes, beware of…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • As Oregon residents, we always try to go the shopping mall in Vancouver Washington for our Christmas shopping. We can easily find a parking space near the store, because all the Washington residents are shopping at the Oregon malls.
    If we have to start paying the Washington sales tax, we’ll do all our shopping in Oregon.
    It is tough to get a 6.5% return on investments, so why would anyone agree to pay 6.5% extra for something.

Leave your comment