[DayBird]

Some of my favorite customers are moving to Washington state to be closer to their daughter's family. They're moving close to the Oregon state line. They say that Washington has no state income tax and that Oregon has no sales tax. They claim that they can live in and work in Washington without paying any state income tax and can drive 30 minutes across the state line into Oregon to buy everything they need without having to pay any sales tax?

Does this sound too good to be true? Is it true?
Why aren't we all moving there?

 

[deberosa]

It is indeed true, except....

Washington has plenty of other taxes to make up for the lack of sales tax. And you cannot buy something like a car in Oregon and not pay taxes. As soon as you license it in Washington they will charge you sales tax on it.

I had bought a truck in Colorado just before moving here. Paid Colorado taxes, but did not get a permanent license there. When I went to get the license in WA I had to pay taxes again!!! Fortunately I got the Colorado taxes refunded. But Colorado was a lower rate so I really should have gotten the permanent license there, then would not have had to pay the Washington tax....

I go to Oregon to visit friends and shop for as much as is possible at those times.

I also would not rely on either tax situations to remain status quo - both sides would love to institute another tax!


One thing I LOVE to go to Oregon for is gas. They are forced to pump your gas for you - it's a nice plus when it's raining out which is just about always.

 

[Christiaan]

The Washington counties that border Oregon also have sales tax exemptions so that they don't lose all their business to Oregon. People still do lots of shopping in OR because prices tend to be lower there because of a somewhat less robust economy.
I would much rather we had an income tax here and got rid of most of the sales taxes. Sales tax is horribly regressive. We also have a Business and Occupation tax that is just awful. Unfortunately, no one in our state government is brave enough to overhaul our system and impose an income tax. Somehow they did have the wherewithal to pass on to the taxpayers the cost of building a stadium in Seattle after voters had turned it down. Money talks, the rest of us are dirt.

 

[tobo6]

I live in Oregon, but so close to Washington that I have to do all my shopping there. I show them my driver's license and I am not taxed.

If you think it is cheaper to live in Washington or even Oregon I would advise you to check out property and the cost for land, property taxes, and housing prices.

Deb

 

[MorrisonCorner]

Don't get excited folks... Vermont realized it was losing tax dollars to no-tax New Hampshire and has started prosecuting people to get it. There has always been a place on the tax form to declare unpaid sales tax (for things purchased mail order or by crossing the border) but nobody ever used it. Now the state is demanding to see credit card charges on the NH side, and from large mail order companies. They prosecuted several people very publically last tax season.

They now have a little chart which estimates, based on your income, what you probably spent on out of state shopping. If you pay that extra tax, they won't prosecute you unless you've purchased something really major and tried to hide it. I *think* it is still up to the state to prove you bought stuff outside of the state... so in theory you could cross the border and pay cash for everything, gas and meals included, and not file any rebate forms etc...

But the state is now moving to collect its pound of flesh on retail transactions no matter where they are made.

 

[CarlaWVgal]

Hush MorrisonCorner! That would really tick me off because living in WV I benefit from haveing low real estate and personal property taxes, but I grocery shop in Maryland because thay don't tax whole foods and I clothes shop in Pennsylvania because there is no clothing tax.

Carla

 

[deberosa]

Yeah the beauracracy they set up to make sure they get their tax costs more than the extra money it brings in!

 

[MorrisonCorner]

Hush MorrisonCorner! That would really tick me off because living in WV I benefit from haveing low real estate and personal property taxes, but I grocery shop in Maryland because thay don't tax whole foods and I clothes shop in Pennsylvania because there is no clothing tax.

Carla

TELL me about it. They had this nice 50 something couple on the news.. socked with a several hundred dollar tax penalty for buying some stuff on the other side of the border and failing to declare it on their taxes. I think it was some $500 worth of stuff (at 6% VT sales tax, that is $30 tax). By the time the state got done adding interest and penalties it was into the hundreds. So the camera is catching their bewilderment... along with their trailer and run down old beater of a car. Like these people are really big fish. The state went after them because they couldn't fight back.

Anyhow, last year I paid the extortion (oops.. tax) because I didn't want them showing up on my doorstep. Who knows how much they spent on out of state purchases over a year? Like I need something else to keep track of.

What a PITA.

 

[sisterpine]

LOL! this is all so funny and so serious at the same time! I live in Montana (a very large, sparsly populated state) If i tried to go to state (A) for food and state (B) for clothes etc I would be driving a thousand miles a week, at the cost of gas that would more than dent any savings on taxes. I cant even imagine living in one state and having two other states so close that i could drive there for necessities!

 

[Ravenlost]

Texas has no state income tax and neither does Tennessee. When we decided to move to the Memphis area we were looking for property in Tennessee because of the no income tax. We ended up settling in Mississippi because the cost of property was outrageous in Tennessee (we looked at property that was $25,000 per acre...OUCH).

 

[perennial]

Sisterpine,

It's my understanding that montana has a 10% income tax rate. Is there no sales tax? Are food and clothing taxable? How are the city taxes in your area?

Here in MA we pay state income tax 5.95, 5.0 sales tax and HUGE real estate taxes, trash fees, water/sewer fees, bussing fees (if you need to) and our taxes are going up for 2005. Hubby's going to go crazy when he sees the new tax bill. We pay $3,600 for not quite 3/4 acre, $800-$900 water/sewer fee, and on the list goes and don't forget that excise tax! That's part of why we want to move.

Food rates and everything is very expensive here. I shop at BJ'S every 6 weeks to save $$ and am learning to use simple ingredients to clean with to
save $$. I'm also buying more and more ingredients and baking fresh to save $$ (and I love to do it).


brural

 

[deberosa]

Washington also has a 2% tax when you sell your home! Have no idea where that money goes, but that adds up real fast! If you put in a mobile home you pay the straight sales tax on it, just like you were buying a car.

 

[FrankTheTank]

Same thing is done here on the WI/MN border. Many rich people build big houses on the MN side (where property taxes are MUCH lower) and work in WI. WI has the added benefit of getting cheaper gasoline because MN is lower taxed. MN has food sales tax, no clothing tax. WI is the opposite.

LESSON:
Live in MN
Buy Food WI
Buy Clothing MN
Buy Gas MN
If you drive a junker car, register MN<---cheaper
If you drive a nice car, register WI<---cheaper

last two hard to do if you don't own a business or have relatives across the border.