Out-of-state shoppers lose Washington tax exemption July 1

Out-of-state shoppers lose Washington tax exemption July 1

Shoppers from Oregon and other states that don’t have a sales tax are losing their automatic tax break at businesses in Washington state starting Monday.

Washington lawmakers amended the sales tax exemption — which was first enacted in 1965 — as part of a tax package passed earlier this year alongside the state’s new two-year budget. Under the new law, non-residents will now pay state and local sales taxes at the time of purchase. Starting in January, out-of-state residents from eligible states will be able to request a remittance from the state if they have receipts that show they paid at least $25 in state sales taxes in the previous year. They will be limited to one refund per year, and local sales taxes paid will not be factored into the reimbursement.

The state sales tax is currently 6.5 percent and the state estimates that the change will bring in about $175 million through mid-2025.

In addition to Oregon, four other states don’t have a sales tax: Alaska, Delaware, Montana and New Hampshire.