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Old 06-27-2022, 03:04 PM   #29
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Originally Posted by Kid Gloves View Post
Don’t take this as someone defending the actions of a vehicle dealer. Laws are constantly being interpreted. I suppose that’s because they’re written by lawyers and it’s never really clear to anyone, exactly what’s being said. In this case, it could be argued that the sale (transaction) would have taken place in Oregon and the dealer would not have sent (exported) the vehicle to another state. It could be that the tax collecting agency considers the deal “done and dusted” within the state. And the dealer knows that it will be a taxed transaction. It’s also possible that the dealer/DMV could issue a transport permit which might meet the requirements of being exported. Ultimately, the financial transaction would have occurred in Oregon, on an item the was in Oregon at the time of the transaction.

Looked at another way. People from CA, WA and ID frequently purchase big ticket items in Oregon, such as TV’s, appliances, riding mowers, etc. The buyer pays no sales tax. For the seller, however, it is a sale of a product in Oregon, regardless of where the item goes after the sale.

Just looking at it from a different perspective while we’re all speculating on the intent of the dealer and the interpretation of the law.
Yepper. I'm not taking a side either way but there seems enough ambiguity that further definitions are needed to suss out the real intent of the law (as enforced).

Many states also have use taxes, where a purchase of goods or services "imported" into the state are subject to tax as if they were purchased locally. Designed to tax "mail order" stuff that was not taxed at the point of sale; now a moot issue for most all goods purchased by internet, mail or telephone.
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Old 06-27-2022, 03:08 PM   #30
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Just an interesting point here. I live in Oregon. Went to the local NAPA store to get DEF today. after getting home. looked at the receipt, and less what - there was a line item on there referencing how much in CAT I paid.
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Old 06-27-2022, 04:51 PM   #31
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Just an interesting point here. I live in Oregon. Went to the local NAPA store to get DEF today. after getting home. looked at the receipt, and less what - there was a line item on there referencing how much in CAT I paid.
How much did you pay?
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Old 06-27-2022, 05:38 PM   #32
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Just an interesting point here. I live in Oregon. Went to the local NAPA store to get DEF today. after getting home. looked at the receipt, and less what - there was a line item on there referencing how much in CAT I paid.
That is interesting. I’m in Oregon as well. Just looked at a couple of recent Home Depot receipts, no CAT. I’ll keep an eye out.

What’s also interesting is one of the links posted earlier contained information that said calculating the amount at the point of sale would be difficult to determine due to the 35% deduction and how that is calculated. It does seem that any company that is charging the full .57% would be charging the customer more than they will actually be paying in CAT.

Another law that was passed not too long ago in the state has opened up a rather large can of unintended consequences. They don’t always get it right the first time. The state is also sitting on the largest surplus in history and the Kickback to taxpayers in 2024 is projected to be the largest on record.
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Old 06-27-2022, 07:10 PM   #33
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Most places the computer automatically adds that .57 into the price when it is shelved. The only things that don’t get it are: groceries, fuel, and medical.

Its called a Gross Receipts Tax Businesses pay it above 1m. total revenue.
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Old 06-27-2022, 09:49 PM   #34
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I used to live in Oregon. The CAT is a sales tax, plain and simple. The Oregon constitution prohibits sales tax, so this was there solution. One thing to think about, it is a tax on revenue, not profit. A company can sell 10 million dollars worth, lose 3 million, and pay tax on ten million. One of the many reasons I shut my business down and moved out.
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Old 06-27-2022, 10:55 PM   #35
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I used to live in Oregon. The CAT is a sales tax, plain and simple. The Oregon constitution prohibits sales tax, so this was there solution. One thing to think about, it is a tax on revenue, not profit. A company can sell 10 million dollars worth, lose 3 million, and pay tax on ten million. One of the many reasons I shut my business down and moved out.
Correct.
I have a Family member who's business was closed twice by the State of Oregon during Covid. They along with their staff worked hard to survive and did, but the business made no profit in 2020 and 2021.

As stated this is a tax on Business sales so they had to still pay the CAT tax. Incredible.

I hear more and more business's are showing this cost on the receipts as a separate line item, so folks are aware that they are paying this "Hidden" tax.

By the way this CAT tax was put to a vote by the people and it was voted down. Yet the Oregon Politicians rammed it through on their own regardless.
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Old 06-27-2022, 11:49 PM   #36
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Is it wrong to tax for school spending?
The CAT is in addition to the state's current corporate income tax. Revenue from the CAT will be transferred to the Fund for Student Success and will be used for education spending.
. Why was the CAT created?
According to the results of the Quality Education Model (QEM; final reports found here), funding for
K-12 public education in Oregon has not been sufficient to achieve the state’s desired goals for almost
two decades. Since the passage of property tax reductions in the 1990s, a majority of school funding
has been through state resources. Consequently, school funding is in direct competition with other
General Fund demands as well as being subject to the volatility of the income tax.

https://clarknuber.com/articles/abou...ivity-tax-cat/
"Earlier this year, Oregon enacted a form of gross receipts tax that will apply to taxpayers in addition to the state’s income tax. The voters had 90 days to reject H.B. 3427 through their referendum power provided by the Oregon constitution. A similar bill was turned down previously, but due to several potential reasons, the Oregon voters did not reject such a tax this time around. Thus, the tax will become effective January 1, 2020."
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Old 06-28-2022, 01:37 AM   #37
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We were considering a purchase of a motorhome in Oregon and the dealer was going to charge us for the Oregon CAT tax in addition to our state sales tax. This is ridicuous! It's like charging a home buyer/seller for the agents state tax due on the commission. The follow is off the internet about this CAT tax:

Who must pay Oregon CAT tax?
The CAT is applied to taxable Oregon commercial activity in excess of $1 million. The tax is computed as $250 plus 0.57 percent of taxable Oregon commercial activity of more than $1 million. Only taxpayers with more than $1 million of taxable Oregon commercial activity will have a payment obligation.

It is clearly the responsibility of the dealer to pay! No way are we ever okay with that! Buyer beware!
6 to one, half dozen to another. If you buy from an Oregon dealer you will end up paying that tax. Either a separate line item, or just lumped into the RV's cost.

And this goes for any other state as well.

The dealer where I bought my trailer had, on a separate line, "Pre delivery service." Rest assured, I was going to pay this, either a separate line item or rolled into the total purchase price.
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Old 06-28-2022, 03:44 AM   #38
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Originally Posted by Cumminsfan View Post
Is it wrong to tax for school spending?
The CAT is in addition to the state's current corporate income tax. Revenue from the CAT will be transferred to the Fund for Student Success and will be used for education spending.
. Why was the CAT created?
According to the results of the Quality Education Model (QEM; final reports found here), funding for
K-12 public education in Oregon has not been sufficient to achieve the state’s desired goals for almost
two decades. Since the passage of property tax reductions in the 1990s, a majority of school funding
has been through state resources. Consequently, school funding is in direct competition with other
General Fund demands as well as being subject to the volatility of the income tax.

https://clarknuber.com/articles/abou...ivity-tax-cat/
"Earlier this year, Oregon enacted a form of gross receipts tax that will apply to taxpayers in addition to the state’s income tax. The voters had 90 days to reject H.B. 3427 through their referendum power provided by the Oregon constitution. A similar bill was turned down previously, but due to several potential reasons, the Oregon voters did not reject such a tax this time around. Thus, the tax will become effective January 1, 2020."


Would love to answer this, but alas, it would go political. Several things you left out as to why it passed , i’ll leave it alone as we won’t solve it.......yet.
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Old 06-28-2022, 07:43 AM   #39
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Would love to answer this, but alas, it would go political. Several things you left out as to why it passed , i’ll leave it alone as we won’t solve it.......yet.
Yup..Same reason for no "in depth" response here.. Suffice to say We "Packed our 'Shack" and now call South Dakota Home..
[I would list the positives of being a SD "RV full timer resident", but that would again create an opposing view political stance/statement vs Oregon...
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Old 06-28-2022, 07:49 AM   #40
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Old 06-28-2022, 07:53 AM   #41
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Quote:
Originally Posted by pjsview View Post
We were considering a purchase of a motorhome in Oregon and the dealer was going to charge us for the Oregon CAT tax in addition to our state sales tax. This is ridicuous! It's like charging a home buyer/seller for the agents state tax due on the commission. The follow is off the internet about this CAT tax:

Who must pay Oregon CAT tax?
The CAT is applied to taxable Oregon commercial activity in excess of $1 million. The tax is computed as $250 plus 0.57 percent of taxable Oregon commercial activity of more than $1 million. Only taxpayers with more than $1 million of taxable Oregon commercial activity will have a payment obligation.

It is clearly the responsibility of the dealer to pay! No way are we ever okay with that! Buyer beware!
Dealers have to pass on their costs to remain in business. Some hide the costs in the price, this dealer seems to be open about the cost distribution.

Bottom line is your measuring stick. The final price out the door will tell you if you should be buying from him or a dealer that gives you a better price.

As an aside the dealer reputation for after sales service may also be a consideration.
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Old 06-28-2022, 08:24 AM   #42
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The wording below is as clear as legal mumbo-jumbo can be. Had the potential sale, as described in the original post actually occurred, the sale would not have met the definition of an “export”.

The sale would have taken place in Oregon.
It is dealers choice on whether to absorb the cost or pass it along to the customer.
The only questionable action on the part of the dealer, is if they intended to charge the full CAT of .57%.

My apologies for going back on topic.
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