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We sell electronics in Portland, Oregon. We're aware that Oregon doesn't have a sales tax. However, if we purchase our inventory from a company located in another state, does Oregon provide a sales tax exemption?


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Expert Charles Markham's Answer:

You are correct that Oregon does not have a sales tax or any transaction tax for that matter.
 
Oregon does provide a business registry resale certificate for Oregon buyers to provide to an out of state seller to confirm they do business in Oregon. The out-of-state seller may be able to utilize that certificate to exempt the Oregon buyer from their state's sales or transaction tax. Given that backdrop, I would recommend that you complete the certificate and provide it to the out-of-state seller in hopes of not having to pay sales tax to that vendor.
 
References: Oregon Administrative Rules & Oregon Resale Certificate 150-800-002

Charles Markham, EA

Massachusetts

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Expert Todd Alexander's Answer:

That was a helpful answer. An example of a state in which the buyer would not be subject to sales tax is California. Seller should only collect sales tax from customers located in California if you have a nexus in California
 
References: California Revenue & Tax Code 6051-6055

Todd Alexander, CPA

California

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