Oregon, and other states without a sales tax are losing their automatic tax break at Washington businesses starting Monday.
Refund to Replace Tax Break for Oregon Residents and Others
The sales tax exemption, enacted in 1965, was amended by Washington lawmakers through a tax package that was passed earlier along with the state’s two-year budget.
Under the new rules, non-residents will pay local and state taxes at the time of purchase. Out-of-state residents will be able to request a refund from the state if they have receipts that state that they paid at least $25 in sales taxes in the previous year. This is limited on a once-per-year basis, and local sales taxes are not included in the calculation.
The current state sales tax is 6.5%, and the state government estimates that this new regulation will increase the current tax revenue up to $175 million by 2025.
Including Oregon, there are four other states that don’t implement sales taxes:
Montana, Alaska, New Hampshire, and Delaware.