Washington state consumers have long traveled to Oregon to take advantage of its lack of sales tax. Including county and city sales taxes, the highest total sales tax is in Arab, Alabama, 13.50%. States Without a Sales Tax Only five states don't impose a sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Basically, while Oregon doesn't have a sales tax, they have to make up the needed revenues through higher income taxes or property taxes. "Why not an Oregon sales tax?" Oregon Sales Taxes on LLC Sales. Like the typical sales tax, their gross receipts tax includes exemptions on things like food and health care. Finally, the measure trimmed income tax rates to reduce the impact on consumers. The federal GST rate is 5 percent, effective January 1, 2008. 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It could still wind up on the ballot, however. “While businesses might write checks to taxing authorities, that revenue comes from elsewhere. Everything you need to file and pay your Oregon taxes: instructions for personal income and business tax, tax forms, payment options, and tax account look up. The state also has a bottle deposit fee and an E911 fee, which is a 75 cent tax applied to any device capable of dialing 911. Hass, the state senator, countered that sales taxes can also pyramid. “I knew in my bones that it was going to have a tough time,” McCall said after the election. Be a part of it. Some include: Sin Taxes (on things like liquor, tobacco, etc..). I think WA does OK with just two taxes. What States Have No Sales Tax on RVs. California citizens also voted in rule that the legislature could not increase taxes without a 2/3rds vote. This can get quite confusing for people who travel from one part of the state to another, as you might never know how much you are going to pay in tax. “I don’t remember that we ever looked at a gross receipts tax,” she said, “because we thought if the business community automatically says no, we’re not going to get anywhere with this.”. I went on vacation at Oregon and realized that they didn't have sales tax. How do you think about the answers? Unfortunately, sales taxes are becoming more prevalent as time goes on, although there are still a few states that do not require any sales tax on items purchased online. Former Oregon Gov. True, Oregon has no sales tax, so if you buy a $100 pair of shoes, it will cost $100, not $109 +/- as it would in California. Some states like New Hampshire (which doesn't have a sales tax or an income tax) have a state property tax. The idea was to help elderly home owner's from having their taxes raised so high that they would have to sell off their homes. It piles up taxes as businesses sell products and services to each other before reaching the retail marketplace. In some places, this jumps to as high as 7.5 percent. Oregon has no state sales tax, and allows local governments to collect a local option sales tax of up to N/A.There are a total of 16 local tax jurisdictions across the state, collecting an average local tax of N/A. 1. This means that remote sellers who do not have nexus through any of the above categories are not required to collect and remit sales tax. Bend collects the maximum legal local sales tax There is no applicable state tax, county tax, city tax or special tax. That’s the threshold needed to raise taxes. The State government tries with some frequency to pass a sales tax and its always been voted down by a large margin. As a lifelong Oregonian who always opposed a sales tax I now live in Florida which has a sales tax. Still, the bill was unanimously opposed by Republicans. However, the pitch is always we'll lower your income tax and promise not to raise it if you let us have a sales tax. Unions spent millions of dollars arguing Measure 97 would make big business pay its fair share while focusing advertising on studies showing that business taxes are low in Oregon compared to other states. Oregon is one of five states with no statewide sales tax, but Oregon law still allows municipalities or cities to enact their own local sales taxes at their discretion. However, large retailers from around the country spent … Learn about sales tax automation. Oregon is sales tax free - and, to boot, has a lower cost of living compared to the national average. HOWEVER (Here is the catch), for individuals to practice business in Washington, they must apply for Business License where the Fee will be equal (not less than) the state tax return. Alaska's main source of revenue is oil royalties. Though there is no state sales tax, Oregon was noted in Kiplinger’s 2011 10 Tax-Unfriendly States for Retirees due to having one of the highest tax rates on personal income in the nation. (Part of that is because of Oregon’s lack of a sales tax, much of which is actually paid for by business). The average statewide is a much lower 1.43 percent. First, California's enacted Proposition 13 way back in 1978 in order to prevent property taxes from rising any more than 2% a year. You might be surprised to learn that 8.75% is not the only sales tax for all of California. 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