SALES TAX TUESDAY 2019: Oregon

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Oregon is another state with no statewide sales tax, but it does have a high state income tax. It’s just the opposite of its state neighbor to the north, Washington, which has a high ‘sales tax’ but has no state ‘income tax.’

Even though Oregon has no state sales tax, Kiplinger’s 2011 10 Tax-Unfriendly States for Retirees selected Oregon in their list because of their being among the highest personal income tax rates in the nation.

But this article isn’t about ‘income tax,’ it’s about Sales Tax because this is Sales Tax Tuesday, a joint venture between Insightful Accountant and Avalara, the Sales Tax People, and one in a series of articles about each and every state tax jurisdiction in the United States. This series actually started last year (2018), but we got so busy with breaking sales tax news about Nexus and all the various changes to sales tax practices and policies that we couldn't get all the states covered during 2018. As a result, we have still been traveling around since the start of 2019 in our Sales Tax RV visiting states that we haven't yet fully covered, and yes, we even cover those states that don’t have sales tax, because many have ‘other similar taxes.’

Now as it would have it, because there is no ‘state wide’ sales tax in Oregon, counties and cities have the right to impose a sales tax at the local level. Additionally, the state allows businesses to pass certain excise taxes on to consumers. These include local lodging tax, plus a 1.8% state lodging tax (the state lodging tax will be reduced to 1.5% on/after July 1, 2020), a tax on tobacco products, and a “privilege tax” on beer, wine and spirits. Oregon also collects state, county and local taxes on marijuana sales. So, one might argue that “a tax on the sales of these items, by any such name does sound like a ‘sales tax’ to them…!”

The Oregon Department of Revenue is neither involved in, nor maintains a registry of, the various county or local authorities imposing sales or other jurisdictional taxes. Each jurisdiction is responsible for their own administration and collection of all such taxes unless they contractually enter into arrangements whereby, they mutually agree to some administrative arrangement. As a result, it is extremely difficult for merchants to stay aware of changes which maybe implemented at either the county or city level.

And last year, ‘sales tax free’ Oregon, which was one of the most ‘bike-crazy’ states in the United States, chose bicycles as a perfect mechanism for taxation and began taxing the sale of bikes too. So, a flat $15 Oregon bicycle excise tax is due at the point of sale (sounds like a sales tax to me) on each new bicycle which has wheels of 26-inch or larger, and a sales price of $200 or more dependent on whether it is designed to be human-powered or electric-assisted or not.

For more information about Oregon’s limited involvement with Sales Tax related topics, the Oregon Business Registry Resale Certificate registry, information regarding the impact of online shopping for Oregonians, the impact of selling products online for Oregon businesses, and additional tax related topics, contact the Oregon Department of Revenue. 

But let us turn our attention to a few of the finer things in Oregon, and first on my list is ‘steak,’ but not just any steak. I am talking about steak from the James Beard Award-winning Portland Chefs Greg Denton and Gabrielle Quiñónez Denton at Ox Restaurant. A restaurant born in the wood-fired grilling tradition of Argentina based upon the culinary heritage of Spain, France and Italy.

Not only does this place cater to ‘steak’ but it also showcases the Pacific Northwest favorites of the shore vegetables, grains and of course, ‘the vines.’ You could indulge yourself here several nights in a row with different selections ranging from the Bone-in Ribeye, or partake of the Skirt Steak. Perhaps if you are dining for two, go for their ‘Asado Argentino’ with Grilled Short Rib, House Chorizo & Morcilla (Blood) Sausages, Skirt Steak, and Sweetbreads. In my way of thinking, it’s a hard decision between the Lamb Shoulder Chop and the Pork Loin Chop.

It really doesn't matter what you eat at Ox, you are going to probably 'make a pig of yourself.'

But we won't spend all of our time 'eating,' because Oregon has more to offer in the way of sights than we have time to see them. As one of the great Northwest states, you might expect it to be majestic with mountain ranges, and covered with forests. You also expect it to have mighty rivers and stunning lakes, and of course there will be the Pacific coast line. 

The Columbia River delineates much of Oregon's northern boundary with Washington. Most people begin their journey of this river at the Lewis & Clark National & State Parks in the vicinity of the mouth of the Columbia, where the parks commemorate the explorers' expedition. At these parks you can not only take in the beauty of the river and the surrounding terrain, enjoy the fishing, but also learn the historical importance of the exploration.  

But if we were to venture east along the river as it wanders and turns south and then east again; within sight comes Multnomah Falls, a great waterfall located on the Columbia River Gorge. It is the tallest waterfall in the state of Oregon at 620 feet, and we certainly wouldn't want to journey over it in any sort of canoe or boat.

As we continue our journey along the Columbia, the great Mount Hood, part of the potentially active stratovolcanic arc of northern Oregon, comes into view. It's located only 50 miles east-southeast of Portland and it's Oregon's highest mountain.

At Mount Hood, we are going to head almost due south over land to take in some of the other 'volcanic' sights in Oregon. Among these are the 'Three Sisters,' no I am not talking about some sorority girls at a local college. The Three Sisters are volcanic peaks which are part of the Cascade Volcanic Arc, and are the third-, fourth- and fifth- highest mountains in Oregon, each more than 10,000 feet high.

Next on our list to the south is Crater Lake National Park, which was established in 1903. It is the fifth-oldest national park in the United States and the only National Park in Oregon. The Park encompasses the caldera of Crater lake, a remnant of the destroyed Mount Mazama volcano when a violent eruption 7,700 years ago triggered the collapse of the peak. It just happens to be the deepest and bluest lake in the United States.

Crater Lake Lodge featuring Northwest cuisine made with choice Oregon-grown ingredients is another 'outstanding' example of what it means to be a 'foody' in Oregon. This is definitely one place you will want to take in while you are traveling the 'volcanic tour' in Oregon because it is not only a sight, but a cuisine worth the trip. Be sure to sample the locally-grown mushrooms and berries as well as the Rogue Valley cheeses and wines.

Remember, everywhere in Oregon is going to be different when it comes to Sales Taxes, every city and county can 'do their own thing.' That makes it extremely difficult to stay on top of what is owed to which taxing authorities, and when it is due. That's why if you are doing business in Oregon, or maybe conducting business in a variety of different places in Oregon, you need the automated sales tax services that Avalara can provide.

So, no matter how many cities, counties or sales tax jurisdictions you must collect and remit tax for, nor how many oddities exist like in Oregon, you can get automated, cloud-based solutions for transaction tax compliance, not only in the roaring rapids of the Columbia river, or the deepest recesses of the volcanic riffs, but across the entire United States and throughout the world — no matter your business size or industry, Avalara has the solution for you. AvaTax calculates sales and use tax in real time and integrates with your existing business applications to make certain your sales and use tax is right every time.