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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?
ANSWER
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
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