When it comes to buying a new or used car, the Tri-Cities offers a wide array of options for you to explore! Head down to Speck Hyundai of Tri-Cities and you’ll discover an extensive inventory of competitively priced new and used Hyundai vehicles, along with other makes, all ready for you to drive away in today! Our knowledgeable and friendly team is dedicated to helping you find the perfect vehicle that fits your needs and budget.
One topic that our Hyundai Kennewick clients often inquire about is Sales Tax in Oregon, particularly due to recent changes in the regulations over the last few years. Understanding the current sales tax rules is crucial for those who are considering purchasing vehicles across state lines, as it can significantly impact your car buying decision. In this comprehensive guide, we will cover all the essential information you need to know about Oregon’s sales tax regulations and their implications for your vehicle purchase.
The sales tax is a consumption tax levied on purchases by the government. It exists to bring in income to pay for public services and the tax is collected at the point of sale by levying a percentage of the purchase price. The idea is that it helps to distribute the tax burden equally among buyers of high-ticket items, such as cars.
Oregon has a long and fascinating history of being a no-sales tax state. As a result, it has always drawn customers from other states who want to buy cars and other items in a tax-free retail environment. This visitor influx is great for the state’s tourism sector as it also boosts revenues from food, accommodation, and entertainment. However, it also relies on reciprocal agreements with neighboring states as part of a famously complex tax landscape.
One such example is the Washington State Sales Tax which can apply to certain car-related purchases.
When you buy or lease a vehicle from Speck Hyundai of Tri-Cities, you don’t need to pay the Washington State Sales Tax. You can buy or lease a Hyundai or any other kind of vehicle, and not be charged the tax.
This is where the change to the WA sales tax kicks in. Since 2019, Oregon residents have had to pay taxes on services and parts purchases. There is a rebate program run by the State of Washington that can apply to parts and service purchases made by non-residents. The cost of the tax will be detailed in the service or parts purchase.
To demonstrate that you are exempt from paying the Washington State sales tax, you must bring two forms of ID into your Hyundai dealership when you purchase or lease a vehicle. These must show proof that you live in Oregon. They could be, for example, a utility bill and a driver’s license. Contact our team for more advice.
Oregon state taxes have long fascinated legal practitioners as the state has always notably gone its own way when it comes to local tax law and public funding! But it does mean that the rules can seem complex, and vehicle clients are understandably concerned about not understanding the rules and being hit by a tax they hadn’t anticipated. The good news is that your local Hyundai dealership can help you understand what the sales tax means for you and your situation, so you are completely clear before buying or leasing a new Hyundai. Follow the link below to learn more from the Department of Revenue website.
Keen to learn more about sales tax in Oregon and what it means for your car purchase? Contact the friendly team at Speck Hyundai of Tri-Cities who will be delighted to help! Our experts can give you advice and guidance that helps you to factor in this tax for your next vehicle purchase, and we’re here whenever you need us, with extended opening hours and a friendly service team. Call anytime or pop down to your Hyundai dealership for a chat!
