Caution to Oregon buyers on taxes

[LFlory]

Oregon buyers need to be aware that there is a sales tax on a new RV-vehicle purchase by Oregonians. All new vehicles, RVs, and bicycles purchased by Oregon residents must pay a .005% sales tax and it must be paid within 30 days and before you can apply for license and title. I knew that it needed paid but I was waiting to get the DMV to do a vin check before going though all of the paperwork so I was late paying the tax and they slapped me with a $40 late fee and interest. I mention this because Oregon does not have a sales tax normally.

[Centex]

Originally Posted by LFlory

.... Oregon residents must pay a .005% sales tax ....

Believe that should be 0.5% (one-half of one-percent = sales tax rate).

That's [taxable value x 0.005] = tax amount

(be happy, it's 6.25% in Texas )

[LFlory]

Originally Posted by Centex

Believe that should be 0.5% (one-half of one-percent = sales tax rate).

That's [taxable value x 0.005] = tax amount

(be happy, it's 6.25% in Texas )

No it’s .005%, $150 on a $31000 trailer. Sorry about your sales taxes in Texas but us Oregonians have fought all sales taxes for years and have succeeded until this little gem was slipped in.

[Centex]

Respectfully, 0.005 is the factor you multiply by to get the amount for the Oregon 0.5% (one-half of 1 percent) tax.

When you follow the number with the "%", you are expressing a rate, which in this case is one-half of 1 percent (0.5%), not 5 one-thousandths of a percent (0.005%).

Though actually Oregon calls it a "Vehicle Use Tax", and only charges it for purchases from out-of-state dealers. Oregon has a different mechanism for getting that same amount from in-state-dealer sales, called the "Vehicle Privilege Tax", paid by the dealer to the state quarterly, but which can be passed-through to the buyer at the time of purchase.

They both 'quack and waddle' like a "Sales Tax", but the state can still correctly claim "We don't have a Sales Tax on vehicles in Oregon" !

https://www.oregon.gov/dor/programs/...ax_612-005.pdf

https://www.oregon.gov/dor/programs/...use-taxes.aspx

[escape artist]

Originally Posted by LFlory

Oregon buyers need to be aware that there is a sales tax on a new RV-vehicle purchase by Oregonians. All new vehicles, RVs, and bicycles purchased by Oregon residents must pay a .005% sales tax and it must be paid within 30 days and before you can apply for license and title. I knew that it needed paid but I was waiting to get the DMV to do a vin check before going though all of the paperwork so I was late paying the tax and they slapped me with a $40 late fee and interest. I mention this because Oregon does not have a sales tax normally.

Hi: LFlory... Two things certain in life...Death and Taxes. This says nothing about fees!!! It must be where all the "Pandemic payouts" are coming from!!! Alf
escape artist N.S. of Lake Erie

[James Gang]

Texas has no state income tax. Just sales tax of 6.25%. Plus up to 2% tacked on by cities. Oregon income tax can go up to 9.9%. Both states have property taxes. Yep, "two things are certain in life...death and taxes".

[Donna D.]

The vehicle privilege tax is a tax on selling new vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon. Starting January 1st, 2018, 0.5 of 1 percent will be due on the retail price of any new taxable vehicles.

[arniesea]

Originally Posted by James Gang

Texas has no state income tax. Just sales tax of 6.25%. Plus up to 2% tacked on by cities. Oregon income tax can go up to 9.9%. Both states have property taxes. Yep, "two things are certain in life...death and taxes".

Washington is the same. I use an app called "WA Sales Tax" that automatically calculates your sales tax rate (State + County + Town) for you based on your location while using the app. Where I live it is 9.0%.

Vancouver WA just across the Columbia river from Portland OR is a booming bedroom community. Live in WA with no income tax, shop in OR with no sales tax.

[Bobbie54]

Originally Posted by arniesea

Washington is the same. I use an app called "WA Sales Tax" that automatically calculates your sales tax rate (State + County + Town) for you based on your location while using the app. Where I live it is 9.0%.

Vancouver WA just across the Columbia river from Portland OR is a booming bedroom community. Live in WA with no income tax, shop in OR with no sales tax.

True, but buy your RV in Oregon and pay the sales tax when you register it in Washington. (same as buying in Canada.)

[felix2]

Originally Posted by arniesea

Washington is the same. I use an app called "WA Sales Tax" that automatically calculates your sales tax rate (State + County + Town) for you based on your location while using the app. Where I live it is 9.0%.

Vancouver WA just across the Columbia river from Portland OR is a booming bedroom community. Live in WA with no income tax, shop in OR with no sales tax.

I live in Vancouver and rarely go to Portland to shop - I support my local community & local retailers by spending my $$ in WA. My accountant told me that despite OR 9 - 11% income tax/$0 sales tax and WA $0 income tax and 8.4% sales tax, in the end, it makes a difference of maybe a 2% savings at the end of the year to live in WA. Of course it varies according to one's lifestyle etc, but I would gladly pay the 2% difference to not have to cross the bridge into that quagmire of traffic!

[sherminator]

Yes, Vancouver is a "bedroom community", meaning it has a lot of bedrooms, and fewer jobs. Many Vancouverites live in WA, but work in OR, meaning that they pay OR income tax. They also, like felix2, hate to navigate the bridges and their traffic to go to OR to shop. The biggest reason people live in WA and work in OR is because housing prices are lower in Vancouver, and jobs more prevalent in Portland.

[daniel108]

If you do register in OR, be sure to use the enclosed size of your trailer in the description, rather than the listed (e.g. my C21 is ~17'). It makes a difference on the registration fees. I had to research this and explain it to the DMV attendant, who then had to confirm it with her supervisor as she thought it was the total length. Since fiberglass trailers uniquely include the full length of the trailer in their listed length (where stick built typically list the enclosed space only), you would be unfairly penalized if you didn't take care.

OR vs WA total taxes depend a lot on your income as OR has one of the highest marginal income tax rates.

[tractors1]

Originally Posted by daniel108

If you do register in OR, be sure to use the enclosed size of your trailer in the description, rather than the listed (e.g. my C21 is ~17'). It makes a difference on the registration fees. I had to research this and explain it to the DMV attendant, who then had to confirm it with her supervisor as she thought it was the total length. Since fiberglass trailers uniquely include the full length of the trailer in their listed length (where stick built typically list the enclosed space only), you would be unfairly penalized if you didn't take care.

OR vs WA total taxes depend a lot on your income as OR has one of the highest marginal income tax rates.

Excellent info! Think I might file an appeal on my 21!

[daniel108]

See link. https://www.oregon.gov/ODOT/Forms/DMV/464.pdf

The pertinent text being "Campers are measured from the extreme front to the extreme rear of the camper body. Any fraction of a foot is rounded down to the nearest foot". I interpret the camper body to not include the hitch, and apparently they agreed.

I stopped reading at that point. But there is a section below it that talks about absolute dimension limits (45' long and 8.5' wide) the references measuring to the front of the hitch.

Save $27/yr.

[sherminator]

You got registered as a camper, not a travel trailer. The document clearly makes a distinction between the two and states how to measure them. Which DMV office did you go to? Apparently it literally pays to go to the office with less observant employees.

[daniel108]

Ha, wow. I can't believe I didn't catch that..it's right there as clear as day. I guess I was just reading what I wanted to see and ignoring the context. Worse yet I just advised others to follow my mistake! Yet I was able to convince the DMV employee of the same. This was the DMV in Beaverton. I sent in the registration several weeks ago but haven't gotten the plates yet. I'll have to correct this...no point feeling like a tax dodger over a few dollars.

[sherminator]

Originally Posted by daniel108

I'll have to correct this...no point feeling like a tax dodger over a few dollars.

I hope you didn't feel like I was implying you were dodging taxes. After all, it's the DMV employees who are supposed to know this stuff. not you. There is nothing wrong with you questioning what the regulations are really saying, because they are often confusing, although this time I think it was fairly clear.

[Iowa Dave]

Out in the rural areas of Iowa the county officials are usually pretty easy going . When I registered the 21 the clerk asked me the living space dimensions in the trailer. I told her 17 feet long and 7 feet four inches wide. She looked at me and said “so 98 square feet” and winked. Apparently the break is at 100 square feet. I am not of her political party but I vote for her.
You have to check your knife and revolver at the west door with the deputy, and when you leave he says “nice handgun”. That’s living in the country.
Iowa Dave

[daniel108]

Originally Posted by sherminator

I hope you didn't feel like I was implying you were dodging taxes.

Oh no, not at all. It seems clear to me you were just correcting my mistake, which is important in a forum where others may read it. I'm glad you did, although I'm still over it.