online-shopping.jpg
Online shopping and going to Oregon to avoid a sales tax is costing Washington millions. (AP Photo/file)

Residents cost Washington millions buying sales-tax-free Oregon, online products

BY KIRO Radio Staff  on April 26, 2012 @ 6:13 am (Updated: 7:19 am - 4/26/12 )

Washington residents are costing the state about $80 million a year in revenue when they head south of the border to Oregon to go shopping.

Even if you're just buying a flat-screen TV, you're supposed to pay a "user tax" equivalent to what you'd pay if you bought it here.

"If you're sending kids to school, and expect police protection, and other services, maybe you should think about paying your fair share for those things," said Mike Gowerylow, with the Washington Department of Revenue. "When you take off and buy stuff from out of state to avoid the tax, you're not paying your fair share."

The state Department of Revenue says they can track items like cars or boats because you have to license them in this state. But the rest is on the honor system.

"We have no way of tracking what individuals are buying, nor do I think individuals would appreciate very much if they were being tailed by revenue agents to the Costco parking lot in Jantzen Beach and back," said Gowerylow.

He said the state is also losing $450 million a year to online shopping.

KIRO Radio Staff, Staff report
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Comments (55)


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  • Country_Dog wrote...
    Rename the headline
    April 26, 2012 6:38 am
    "State gets less revenue because of Oregon, online products."

    This idea that if people find a way to keep their own money it is a "cost" to the state is simply ridiculous. It comes from the mentality that all money and resources belong to the state and that we are privilged to keep some of it.

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • ron prevost wrote...
    Gov. Christie ? You're breaking my heart.
    April 26, 2012 6:56 am
    So, your solution is .....? .................................... You can require a "user tax" for cars and boats ONLY because they must be licensed to be operated in this state. ... But, otherwise, are we to put up inspection stations on every road crossing into our (un)fair state ? ... The idea that everything should be taxed, regardless, is the dream of progressive/liberals everywhere - but if a TV, why not a pair of shoes ? - or a bottle of pop ?
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  • Rikki Doxx wrote...
    WA Loosing Tax Money?
    April 26, 2012 6:57 am
    If the state wouldn't squander tax money maybe we would buy local. Our tax money goes to illegal's??? Hey Gregoire, deal with it.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • fourstringfuror wrote...
    Paying my fair share?
    April 26, 2012 7:12 am
    Where have I heard that before?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Commonsensical wrote...
    As a former DOR employee...
    April 26, 2012 7:24 am
    This agency does things you would NOT beleive to take money out of the hands of the citizens of Washington. However you cant blame them too much, they get their marching orders from Olympia. If you don't want them watching your spending habits then STOP voiting for democrats who seem to belive the soloution for every "problem" is to create a brand new agency to regulate it. (Does the Department of Early Learning comes to mind?)according to the state budget office Governer Gregoriore has increased the state budget by 50% since Locke left office! Wake up voters! lets start demanding inteligent solutions from our elected officials.
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  • Charp wrote...
    What do they expect?
    April 26, 2012 7:26 am
    When the tax rate in many parts of the state pushes 10%, they shouldn't be at all surprised that people are avoiding it as much as possible.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • grow up/get real wrote...
    No "honor system" if you own a business in WA. . .
    April 26, 2012 7:46 am
    The Department of Revenue ACTIVELY audits businesses in Washington to check for expensed items purchased out-of-state without state sales tax. They selectively pick certain types of businesses every year and go after them aggressively and without compassion. If you have such items, you are forced to pay the sales tax AND interest on the back tax owed. Why the double standard to go after businesses but not individuals? Say WA?
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  • ron prevost wrote...
    DOR goes beyond equity.
    April 26, 2012 8:57 am
    I get data for work from 2 main sources. One company is based out of state and the other is in state. The in state product is NOT, repeat not subject to sales tax. .. But DOR convinced the out of state to collect sales tax and send it in to them for every transaction. ...... I guess they think this may off-set what they can't collect by intimidation.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • fourstringfuror wrote...
    A liberal's fantasy
    April 26, 2012 7:55 am
    ""We have no way of tracking what individuals are buying, nor do I think individuals would appreciate very much if they were being tailed by revenue agents to the Costco parking lot in Jantzen Beach and back," said Gowerylow." They would love nothing more than to do exactly that.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • g33k wrote...
    Lower the bleeping tax rate
    April 26, 2012 7:55 am
    And I will slow down my online & Oregon shopping.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • dadling wrote...
    This is a ridiculous theory !! Liberal Crap !!
    April 26, 2012 8:00 am
    It only cost's the State money, if the State believes that all the money a person who resides in Washington, is property of the State.... This is the problem with liberalism. They believe it's all there's. Like Nancy Pelosi just stated, "We want people to earn more, so they can pay more!" It's time to end this liberal dogma, and throw every liberal out of office...what's mine is mine..I earned it, the State didn't do a thing...if they did, come work my job and then we'll talk about me sharing the State's money !!!!!
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  • messiah101 wrote...
    dadling
    April 26, 2012 10:57 am
    Spoken like a true Selfish Righty,you guys want the good things that the tax income brings but you expect a FREE ride.You live here you pay sales tax here. Its the law and our country is a nation of laws.You can agree or disagree with any law but you still are required to follow the law.You stated "whats mine is mine""I earned it,the State didn't do a thing" Your DEAD wrong. The State gave you the playing field to live and to earn and that doesn't come free. What the State deserves the State gets
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