WA Lawmakers Propose Changing Sales Tax Exemptions For Oregonians

By Chantal Anderson | Feb. 24, 2010 8:44 a.m. | Updated: June 16, 2010 11:56 p.m. | Olympia, WA

For residents of Oregon, the days of shopping sales tax-free in Washington could soon be over. That would also be true for people from other states and Canadian provinces without a sales tax. Washington Senate Democrats have proposed legislation that would change an automatic exemption to a state refund program. Correspondent Chantal Anderson has details.Currently, Oregonians shopping in Washington can flash their driver's licenses and viola, they're exempt from the sales tax. Under this proposal, those out-of-state consumers would have to mail in a document to the Washington Department of Revenue. It's likely non-residents wouldn't be exempt from purchases under $25.Rand Schiltz owns a retail jewelry company in Vancouver, Washington across the river from Portland. He says the change will cause him to lose business.Rand Schiltz: "I have a lot of Oregon customers now and I really think they might just find it more convenient to stay over in Oregon."Just like for example University of Washington student Ignatius Lao. He's from Portland but recently paid no sales tax on a computer keyboard he bought in Seattle. Under this new proposal he says he'd just go back to Oregon to buy such things.Ignatius Lao: “Obviously it would take me a long time to do the paperwork and have to mail it in, and that would just be a lot of trouble that I wouldn't be willing to go through.”Though the change in the sales tax exemption has support in the state Senate it's not clear Democrats in the House will go along with this idea. I'm Chantal Anderson, in Olympia.

© 2010 Northwest News Network

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