Washington Taxes

[RAYSIR]

We are moving to Southern Washington or Salem area in the spring. Can't figure out or decide which State is more Tax friendly?? Do I have to pay sales tax on the Viper and My streetrods when I license them in WA?? or is it only motorhomes. Can't figure out where it's cheaper to retire, WA or OR. Sales Tax or income tax? OR's medical insurance is less. I have an auto repair and car storage for sale. Want to trade. Heading down that way in Feb. to find a house with a BIG garage.

 

[C-Note]

You should not have to pay any sales tax on any of your cars, if you purchase another one as a resident of Washington that will apply. All of the vehicles you currently own it is just a matter of getting them licensed, and that is not to unreasonable.

 

[viprvenm]

If you purchase a vehicle and register it here for the first time.... wow the sales tax is just over 8%. I moved from Alabama where it was aroung 3%. Just buy your stuff there first! Welcome to WA when you arrive!

Jason

 

[dave6666]

Going from really cold, to pretty cold are we?

 

[RAYSIR]

Thanks for the help Guys. Work'n on the move, Dave. Been to Texas and it's WAY too hot and I can't speak Spanish. Hoping for more Global warming, it's 41 here now with rain the norms about -10. I have the interior out of my 52 Chev streetrod putting in A/C and cruise and some new carpets. gett'n ready. LOL

 

[SmokinViperGTS]

Here's a couple of thoughts that I haven't seen posted yet...

1. Washington has a special tax on personal property (i.e. cars, boats, motorhomes, etc) that is brought into the state, that has to be paid at the time of first registration. It is intentionally identical to the sales tax amount , but has a provision to give you credit for any similar tax that you've already paid in another state. I think that it has a provision that says it doesn't apply after you've owned the item for a million years, but I'm not sure about that, since I've always been tagged on the deal.
2. Oregon's income tax can be deducted from your federal income tax. Washington's sales tax deduction is provisional - it's never been made permanent, and is due to expire again this year.
3. Oregon's property tax (read: house) is much higher, generally, than Washington's. But again, this is generally deductible.
4. If you live in Washington (e.g. Vancouver), and work in Oregon (e.g. Portland), this is the worst possible scenario. You will pay Oregon income tax on your earnings in that state, and Washington taxes on all your spending in this state. Better to do it the other way around if you're planning on being a border dweller.
5. Overall, Washington's tax rates (and cost of living) are generally quite a bit higher than Oregon's.

Despite all that, I've lived in Washington since I moved here in 1959. There's much more to it than taxes, or we'd all be gone.