Cigarette tax: Not about money?

I grew up Longview, Washington. A small town on the banks of the Columbia River, on the Washington-Oregon border, Longview had a few small stores, mostly catering to the logging industry that inundates all small towns in the Pacific Northwest. For Christmas shopping, or, come to think of it, for any big-ticket purchases, my family would hit the I-5 South to Portland, Oregon.

When I turned sixteen, I got a job and a drivers licence, and it was time to do my own Christmas shopping. By this time, Longview had a mall – complete with a Bon Marché and a Nordstrom – but I still drove to Portland. Probably for the same reason my parents did. Probably for the same reason everyone did. Oregon does not impose a sales tax.

According to the Washington State Revenue Department, local governments lose an estimated $50 million in tax revenue annually to Oregon-Washington cross-border shopping.

Apparently, We Were Breaking the Law

When Washington residents make an in-state retail purchase, the sales tax is usually added on by the retailer, who in turn pays it to the Department of Revenue. (Oregonians shopping in Washington may present their Oregon ID to the seller in order to prove an exemption). When Washington’s sales tax is not paid on purchases – when purchases are made in Oregon, for instance, where Washington’s sales tax is not collected by the seller – a “use tax” is due. The buyer must report this tax to the Department of Revenue by the 15th of the month after the item is first “stored, used, or consumed” in Washington. Use tax also applies on items used in Washington that were purchased in other states that have a sales tax rate lower than Washington’s. Use tax rates are the same as sales tax rates, around 7-9%, depending on where in the State the resident lives.

You can buy cigarettes online from famous tobacco shop.