Can I collect sales tax from customers in different states without violating tax laws in Oregon? What are the requirements?

Sales Tax Collection from Customers in Different States in Oregon

Based on the documents provided, Oregon law requires distributors engaged in business in the state and selling or accepting orders for cigarettes to collect taxes from purchasers ^[1.1]. However, it is important to note that the Multistate Tax Compact has been enacted into law in Oregon to facilitate the proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes ^[2.3].

Regarding sales tax collection from customers in different states, the Multistate Tax Commission has developed the “Model Sales and Use Tax Nexus Statute” which provides guidance on when a business has a sufficient connection or “nexus” with a state to be required to collect and remit sales tax ^[2.1]. However, it is important to note that each state has its own laws and regulations regarding sales tax collection from out-of-state customers.

Therefore, it is recommended that you consult with a tax professional or the Oregon Department of Revenue for specific guidance on sales tax collection from customers in different states to ensure compliance with Oregon tax laws.

Requirements for Sales Tax Collection in Oregon

If you are required to collect sales tax in Oregon, you must register with the Oregon Department of Revenue and obtain a seller’s permit ^[3.1]. You must then collect sales tax on all taxable sales made in Oregon and remit the tax to the Department of Revenue on a regular basis ^[3.2].

It is important to note that Oregon does not have a statewide sales tax, but instead has a statewide transit tax and local transient lodging taxes ^[3.1]. Therefore, the tax rate and requirements may vary depending on the location of the sale.

Additionally, it is important to keep accurate records of all sales and tax collected, as well as any exemptions or deductions claimed ^[3.2]. Failure to comply with Oregon tax laws may result in penalties and interest charges ^[3.3].

Exemptions for Sales Tax Collection in Oregon

There are certain exemptions to sales tax collection in Oregon, such as sales to common carriers engaged in interstate or foreign passenger service ^[1.4]. However, it is important to note that these exemptions may have specific requirements and limitations.

Therefore, it is recommended that you consult with a tax professional or the Oregon Department of Revenue for specific guidance on sales tax exemptions in Oregon to ensure compliance with Oregon tax laws.

In summary, while Oregon law requires distributors engaged in business in the state and selling or accepting orders for cigarettes to collect taxes from purchasers, the requirements for sales tax collection from customers in different states may vary depending on the location of the sale. It is recommended that you consult with a tax professional or the Oregon Department of Revenue for specific guidance on sales tax collection and exemptions in Oregon to ensure compliance with Oregon tax laws.

Source(s):

• [1.1] Distributor to collect tax on certain sales.
• [2.1] Application of tax laws within federal areas in state.
• [3.1] Tax on use in Oregon of motor vehicles purchased out of state at retail; tax as liability of purchaser; reduction for other taxes paid.
• [3.2] Applicability of other provisions of tax law.
• [3.3] Law enforcement officers to enforce tax and assist department.
• [1.4] Exemption for sales to common carriers engaged in interstate or foreign passenger service; tax on carriers or persons authorized to sell tobacco products on the facilities of carriers.
• [2.3] Multistate Tax Compact.

Jurisdiction

Oregon

• General