You are a California resident buying car in Oregon Do you owe sales tax?

As a California resident buying a car in Oregon, you may owe sales tax depending on the specific circumstances of your purchase. Here's an overview of the sales tax rules that apply to out-of-state car purchases:

1. Sales Tax at the Point of Sale:

When you purchase a car in Oregon from a dealership or private seller, you will typically pay sales tax at the point of sale. The sales tax rate in Oregon is currently 0%. This means that you won't owe any sales tax to the Oregon government on the purchase price of the car.

2. Sales Tax in California:

However, as a California resident, you may still owe sales tax to the state of California on your car purchase. California imposes a use tax on vehicles brought into the state from out of state. The use tax rate in California is also currently 0%.

3. Reporting and Paying Use Tax:

To comply with California's use tax requirement, you will need to report and pay the use tax on the purchase price of the car to the California Department of Motor Vehicles (DMV) when you register the car in California. You may need to provide documentation of the purchase, such as the bill of sale or purchase agreement, when you register the car.

It's important to note that these are general guidelines, and the specific sales tax rules and regulations can vary depending on your circumstances. If you have questions about your specific situation, it's advisable to consult with a tax professional or the Oregon and California DMV for the most up-to-date and accurate information.