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Why doesn’t Oregon have sales tax

Why doesn’t Oregon have sales tax?

Oregon is one of only five states in the US (with Alaska, Delaware, Montana, and New Hampshire) that doesn’t impose a state sales tax. 

So, why doesn’t Oregon have sales tax?

Oregon doesn’t have sales tax because the state’s lawmakers and voters have both opposed it for years. 

Even as other states were formalising sales taxes in the 1930’s, Oregon was opposing it firmly in polls. 79% of voters opposed it in the 1933 elections and the majority has consistently been on the “Nay” side.

In the United States, federal regulation of sales tax laws does not exist. Therefore, the base sales tax is under the jurisdiction of each state.

Hence, Oregon has continued to avoid sales tax on a statewide level. But what would this mean for the average citizen in the region?

Are there other types of sales tax in Oregon?

Despite not having a statewide sales tax, Oregon’s laws nevertheless let cities and municipalities impose their own local sales taxes at their discretion. This means you can potentially run into an area of Oregon that may adopt sales tax in the future.

You might also want to know about the so-called ‘vehicle use tax’, which is applied to brand-new vehicles bought outside the state. This tax has to be paid before the car may be titled and registered in Oregon.

It’s also worth noting that Beaver State does not provide a certificate exempting its residents from sales tax when they purchase sales or use transactions in other states. 

Meanwhile, Oregon residents who purchase items outside of the state can later resell them in the state through the use of an “Oregon Business Registry Resale Certificate’.

What taxes are imposed in Oregon?

What taxes are imposed in Oregon

Sure, Oregon does not levy a state sales tax. But, there are other state taxes that impact the residents of Oregon as well. 

The following is sourced from the Oregon State Tax Guide, published by Kiplinger.

Oregon Income Taxes

Income taxes in Oregon rank among the highest in the country. Under this tax is a ‘kicker’ rule, which allows for a partial refund to be provided to taxpayers the next year if too much money is collected in one year. 

The latest data shows that the state’s income tax ranges from the lowest rate of 4.75% to the highest of 9.9%.

Oregon Real Property Taxes

The average property tax rate in Oregon is $939 for every $100,000 of assessed home value. 

Property taxes for retirees (homeowners 62 and older) can be delayed through the Property Tax Deferral for Disabled and Senior Citizens program.

Oregon Motor Fuel Taxes

Prices vary by location, but here are the current ones: 

  • Gas: 40.83 cents per gallon 
  • Petrol: 40.06 cents per gallon

Oregon Sin Taxes

ItemSin Tax
Cigarettes$3.33 per pack
Cigars65% with a cap of $1 per cigar
Moist snuff$1.78 per ounce with a minimum of $2.14 per unit sold
All other tobacco65% of wholesale price
Vapor products65% of wholesale price
Beer$0.08 per gallon
WineVaries by the alcohol volume (e.g., $0.67 per gallon with up to 16% alcohol by volume).
Liquor$21.95 per gallon 
Marijuana17% retail sales tax 

Oregon Estate and Inheritance Taxes

Oregon imposes an estate tax on various kinds of properties that are valued at $1 million or more. Rates are between 10% and 16%.

There you have it! If you want to find more information about Oregon (or Portland perhaps?), do take the time to browse through our articles!

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