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Is it true?

1359 Views 12 Replies 10 Participants Last post by  FrankTheTank
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?
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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. :D
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Yeah the beauracracy they set up to make sure they get their tax costs more than the extra money it brings in!
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.
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