Oregon to start charging 0.5% sales tax on new vehicle purchases

[Stan@FourWheel]

Looks like Oregon is going to start charging a small 0.5% sales tax on new vehicle purchases.

You will now have the privilege of paying them some extra tax.


DOR – HB 2017 (2017) Privilege and Use Taxes Article

http://www.ordealers.com/DORDealerDetailsArticle_Final_11-14-2017.pdf








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[Wallowa]

Damn, damn....the asylum is now run by the insane...hey, if you are able to buy a new vehicle you should be able to support those living in city parks and under freeway over crossings...not progressive but regressive. Backdoor sales tax.

Do remember that a FWC in Oregon does not require a vehicle license [unless changed since 2016] therefore it should not be subject to this tax....for now. And, for now, we do not have and have voted down a state sales tax.

Phil

 

[camper rich]

I could buy a new vehicle in Oregon, pay the .5% and then, when I register it in Utah, I would only have to pay 6.35% instead the 6.85% full sales tax. What a deal.

 

[Kali]

Wow.....I wish Kalifornia was that cheap. Unfortunately our Governor thinks raising taxes is the cure-all.

 

[PaulT]

This tax is controversial for several reasons. First is that Oregon voters have not approved any sales taxes. Second is that a vehicle is considered "new" if it has less than 7500 miles. So, if a 40 year old classic car worth $200000 has less than 7500 miles and successive owners don't put miles on it, the tax will be paid each time it sells. I suspect there will be law suits related to the structure of the tax as a percentage of value, a sales tax, vs. an excise tax, a fixed amount per unit not based on value. As I understand it, IMHO, YMMV, etc.

Oregon has a spending problem made worse by not having properly funded the public employees retirement system for decades with a guarantee to employee of 8% minimum growth annually. Kalifornia's governor is not alone on the west coast relative to raising taxes

Paul

 

[kmcintyre]

It's just the start. If we were alive in 100 years, it'd be 8%. I've seen this in Idaho. They raise the sales tax "temporarily" and it never goes back down. I think if they'd reduced it like they said they would over the last XYZ years, it's supposed to be 1% or something low like that. It's 6% now. It's not about what the rate is, it's about how they "sell" the raises and never roll them back.

 

[Beach]

What a deal. We pay 6.25% in Texas.

 

[PaulT]

What a deal. We pay 6.25% in Texas.

Not necessarily a "deal". We have voted down sales taxes 8 or 9 times mostly because it is another camel's nose in the tent. Even with income tax of 9% to 9.9% for most people plus high property taxes, it is an unending battle to watch the sausage makers in Salem try to increase revenues (taxes) to have more to spend. It only goes up, never down, and there are always those draconian budget cuts that somehow result in more not less money wanted. It is easier to deny them the sales tax completely than to control the percentage rate.

Paul

 

[PackRat]

Kinda looks like you have three places to fund the cost of running the State and County expenses...
1) Property Taxes
2) Income Taxes
3) Sales Taxes

Most States I think end up having to go with a combination of two of the above to make ends meet....and pay for pensions, infrastructure, cops and firemen and everything else under the sun.

Years of neglect to the infrastructure has now caused the bill to come due there also; roads, bridges, dams, highways, city infrastructure and everything else is falling apart and everyone acts surprised? Hey, the bill is coming due now and its gonna be expensive to live like it was in the 80's.