The State of Oregon imposes a new tax on sales of new vehicles to Oregon residents that takes effect January 1, 2018.
Washington dealers will have to collect the vehicle use tax if they have a physical presence in Oregon. Even if they are not physically present in Oregon, they may choose to collect and remit the vehicle use tax to Oregon DOR. Those Washington dealers collecting and remitting the vehicle use tax must register with Oregon DOR to report/remit the vehicle use tax.
The Oregon vehicle use tax collected and remitted to Oregon DOR by Washington dealers is excluded from gross proceeds of sales for Washington B&O purposes and excluded from the measure of the Washington retail sales tax.
It is our understanding that Washington dealers without a physical presence in Oregon will not have to pay Oregon’s vehicle privilege tax. Contact the Oregon Department of Revenue for information on your Oregon tax obligations.