Oregon has no state sales tax, but local governments impose individual income taxes. This tax is imposed on residents of the state and can range from 9.90% to 10.20%. Generally, it is only collected on large purchases, such as cars and boats. Out-of-state online sellers may be required to collect state sales taxes if they meet certain thresholds. These thresholds are usually based on the number of sales or transactions. In addition, some states require remote sellers to register with the state tax agency.
In addition, many states have local taxes that are imposed on certain types of goods or services. For example, Washington taxes tobacco products, including cigarettes and cigars. The state also levies a vehicle use tax on vehicles purchased from dealers outside the state. The tax is applied to the purchase price and is paid to the Department of Revenue. Similarly, Oregon has an excise tax on tobacco products and a business and occupation tax on businesses that earn more than $1 million in gross receipts.
Oregon is one of the five states without a statewide sales tax. This makes it more attractive for e-commerce retailers to do business in the state. This tax-free status also simplifies point-of-sale systems and record keeping. There are many arguments for adopting a state-wide sales tax, but the main argument is that it would diversify the state’s revenue streams and make government spending more stable.
Due Fates for Filing Taxes in Oregon
For 2024, the due date for filing Oregon individual income tax returns and paying any owed taxes will be Tuesday, April 18. This is because the federal due date for filing taxes falls on a weekend this year.
Oregon Tax Extension Request
If you need more time to file your return, you may request an extension by checking the “extension payment” box on voucher Form OR-65-V and sending it with your return. You can find the form on the Department of Revenue’s website. However, extensions do not extend the due date for paying the $150 minimum tax.