Paying Dealer's Taxes in Oregon! Buyer's beware!

[Gordon Dewald]

Originally Posted by Cumminsfan

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."

Used to be in our part of the country the fuel tax went into a dedicated account and was tagged for roadway construction and maintenance. It was a very healthy account and the roads were kept in good condition. Then the decision was made to combine the highway account with general revenue. You can probably guess what has happened since.

[NevadaNick]

So the dlr is adding a tax instead of building it into the stated pricing ? Whats next ? An added fee for their fed income tax.

[HighDesert]

Originally Posted by Cumminsfan

How much did you pay?

2 cartons of def at $35.28 and paid 20 cents CAT. NAPA showed CAT as a line item on the receipt.

[Solo_RV_Guy]

Originally Posted by Gordon Dewald

Used to be in our part of the country the fuel tax went into a dedicated account and was tagged for roadway construction and maintenance. It was a very healthy account and the roads were kept in good condition. Then the decision was made to combine the highway account with general revenue. You can probably guess what has happened since.

Under a previous administration, attempts at Laffler's idea of economics led to the Kansas legislature to make a number of revenue cuts; they then had to raid the state highway trust fund to balance the state budget as required by the KS Constitution. After almost 6 years of hijacking these funds, Kansas highways and bridges were in serious decline.


The current legislature (same basic political distribution) has seen fit to let the trust rebuild. The cynic in me thinks they're just fattening up the Golden Goose for a repeat in the future.

[laj]

Originally Posted by NevadaNick

So the dlr is adding a tax instead of building it into the stated pricing ? Whats next ? An added fee for their fed income tax.

Can’t add a tax till you know what the selling price is. Its not like a box store that selks for one price[emoji15]

[Kid Gloves]

Originally Posted by Solo_RV_Guy

Under a previous administration, attempts at Laffler's idea of economics led to the Kansas legislature to make a number of revenue cuts; they then had to raid the state highway trust fund to balance the state budget as required by the KS Constitution. After almost 6 years of hijacking these funds, Kansas highways and bridges were in serious decline.


The current legislature (same basic political distribution) has seen fit to let the trust rebuild. The cynic in me thinks they're just fattening up the Golden Goose for a repeat in the future.

They move in mysterious ways.

I incorrectly referred to the Oregon Kicker as a Kickback and threw out 2024, rather than 2022. The Kicker, which kicks in when income tax revenue exceeds estimates by more than 2%, requires the excess be refunded to taxpayers. For 2020, the total Kicker was $1.9B, which topped the previous record in 2018 of $1.5B. The Kicker for 2022 is estimated to be nearly $3B.

So, we have an ongoing, increasing surplus, even through challenging economic times, for which a law has been created to refund that money. And then we have shortages, or the need for more funds elsewhere, so laws have been passed to extract more money from taxpayers.

Why these problems persist is anyone’s guess.

[pjsview]

Originally Posted by Gordon Dewald

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.

The dealer hid it the sales tax line. It was not disclosed until I asked about the tax rate.

[Kid Gloves]

Originally Posted by pjsview

The dealer hid it the sales tax line. It was not disclosed until I asked about the tax rate.

There is no sales tax in Oregon. Being from Idaho, let’s assume you are aware of that. The tax was hidden in plain sight on the document. You asked about it and they answered your question.

Did you ask if they were willing to work with you on the CAT?

Is there more to your story?

[NevadaNick]

Originally Posted by laj

Can’t add a tax till you know what the selling price is. Its not like a box store that selks for one price[emoji15]

The tax is on the businesses total receipts. If i buy from them before they meet the 1m threshold do i not have to pay it ?

[laj]

Nevada, can’t answer that right now. I have a friend that’s a gm dealer. I will ask him this morning.

[Wire4money]

It is a sales tax. It is a tax on the sales price of the vehicle, not the profit. There is also a luxury tax for purchasing a new vehicle, trailer, power sports, etc. it’s probably in the sales tax line so the customers understand what the state did.

[Wire4money]

Originally Posted by NevadaNick

The tax is on the businesses total receipts. If i buy from them before they meet the 1m threshold do i not have to pay it ?

No. If they have 1m in total sales, they pay tax on all of it. Be clear it is a tax on the sales price, not profit. Even if they lose 10 million, they will pay tax on all sales.

[Kid Gloves]

Calling it a sales tax doesn’t make it a sales tax.

Understanding how the tax is imposed can help clear up misunderstandings.

[Kid Gloves]

Originally Posted by Wire4money

No. If they have 1m in total sales, they pay tax on all of it. Be clear it is a tax on the sales price, not profit. Even if they lose 10 million, they will pay tax on all sales.

This is completely inaccurate. Have you actually read how the Oregon CAT is imposed?