There are states that do not collect sales and use tax, and they are known as “Nomad States.” The list includes: New Hampshire, Oregon, Montana, Alaska and Delaware.
Lately, there has been some buzz regarding Oregon being removed from that list. If that is the case, there will be a rush to obtain exemption certificates to cover tax exempt sales in Oregon. I cannot be certain which of the many exemptions will be allowed, but I can practically guarantee Resale will be one of them. What does that mean? If you are lucky enough to have nexus in Oregon, it means that you may have a big project on your hands and you need to start gearing up now. Find out if you have the capability to collect exemption certificates in bulk. Compile a list of your customers in Oregon and the products you sell to them. If Oregon moves forward with taxes, you’ll be ready to determine if your customers are buying resale items. This will at least give you an idea of the scope of the project and help you determine if you will need additional technical or human support. It will not be perfect, but at least at least it will give you a head start. Then get ready to press GO when, and if, Oregon starts collecting taxes. It’s crazy, but it gives me energy thinking about this project. Are you ready?
Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:
- Exemption Certificates for Federal Government Purchases
- Marketplace Fairness: What Does It Mean For Exemption Certificates?
- Will Oregon Start Charging Sales Tax? If So - Are You Ready?
- Canada is Bringing Back Exemption Certificates!
- Louisiana Changes State Forms to Include Parish Exemptions
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