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Oregon Residents to Pay Sales Tax in Washington on Tangible Personal Property

June 12, 2019 | By | No Comments

The Washington Department of Revenue released a notice on May 31, 2019 explaining a change to the sales tax exemption for qualified nonresidents. Starting July 1, 2019, Oregon residents will no longer be exempt from sales tax in the state of Washington at the point of sale.

Prior to July 1, 2019, an Oregon resident or a resident of any state that does not impose a sales tax, was exempt from paying Washington retail sales tax on the purchase of tangible personal property, if the property was used outside of Washington. Beginning July 1, 2019 this exemption will no longer be available at the point of sale. Rather, the consumer may request an annual refund with the Washington Department of Revenue for the state retail sales tax paid. A consumer will not be refunded for any local retail sales tax paid on the purchase.

A refund is not eligible for purchases of the following  goods and services:

  • Marijuana or marijuana products
  • Repair parts when not separately stated from repair labor
  • Items or services substantially used or consumed within Washington, such as:
    1. Lodging
    2. Meals
    3. Laundry or dry-cleaning services
    4. Automobile towing or parking
    5. Recreational services

Starting July 1, 2019 sellers of tangible personal property, digital goods, and digital codes must begin collecting retail sales tax from nonresident consumers when the property is transferred to the consumer at a Washington location. A sales tax exemption will still be granted to nonresident consumers purchasing motor vehicles, watercrafts, farm machinery, and vessels within Washington state.

To submit a valid refund request to the state, the consumer must provide copies of receipts and proof of qualified non-residency. A consumer may submit one request per calendar year. The consumer must have paid $25 or more in Washington retail sales tax or the request will be denied. Qualified nonresidents may submit a refund request beginning January 1, 2020 for purchases made between July 1, 2019 and December 31, 2019.

If you have questions regarding the change to the sales tax exemption please reach out to our team today.

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