Oregon — Sales & Use Tax

Oregon does not impose a general state sales tax. The state relies primarily on personal income tax, corporate excise tax, and property tax for revenue. Oregon voters have rejected sales tax proposals at the ballot at least ten times since 1910, but there is no constitutional provision that explicitly prohibits the legislature from enacting a sales tax. Oregon is one of five states—along with New Hampshire, Montana, Alaska, and Delaware—that does not levy a statewide general sales tax.

Source: Oregon Department of Revenue — Sales Tax in Oregon Source: Oregon Blue Book — Oregon's Economy: Revenue and Taxes

The City of Ashland imposes a 5% tax on sales of prepared food and non-alcoholic beverages for immediate consumption by restaurants, caterers, grocery store delis, coffee shops, and similar establishments. Businesses that collect this tax are allowed to retain 5% of the tax collected as compensation for accounting and administrative costs. Accordingly, each month, businesses remit only 95% of the food and beverage tax collected to the City and keep the remaining 5%. For example, if a business collects $100 in food and beverage tax, it would remit $95 and retain $5. The monthly reporting and remittance process requires completion of the City's official food and beverage tax return, which confirms the 5% remittance retention, the monthly filing cycle, calculation method, and due date (the last day of the month following the period in which the tax was collected).

This section is based solely on the City's official tax return form; the full text of the imposing ordinance, including definitions of covered items, exemptions, effective date, and scheduled expiration, could not be located on an official .gov or .us source. Unable to confirm further details as of 2026-06-16.

Source: City of Ashland — Food & Beverage Tax Return Form.pdf)

Effective January 1, 2027, Oregon will increase the state transient lodging tax rate from 1.5% to 2.75%. The statewide tax applies to the total retail price charged for occupancy of transient lodging, including hotels, motels, vacation rentals, bed-and-breakfasts, campgrounds, and similar short-term accommodations. Both transient lodging providers and lodging intermediaries (such as booking platforms and agents) must collect and remit the tax.

The main statutory structure for imposing and administering the tax remains ORS 320.300–320.350. The increase in the rate is the result of House Bill 4134 (2026), which amends ORS 320.305. The new 2.75% rate is effective for lodging stays beginning on or after January 1, 2027. Stays occurring prior to that date remain taxable at the 1.5% rate. The change is part of Oregon's 2026 revenue package and is confirmed by the Oregon Department of Revenue's 2026 legislative summary and bill text.

Exemptions listed in ORS 320.308 remain in effect—there is no change to the existing statutory exemption categories as of this publication. Exempt categories include:

1. Dwelling units in hospitals, health care facilities, long-term care, or other licensed residential facilities;
2. Units in facilities for drug/alcohol or mental health treatment;
3. Units used by the public fewer than 30 days per year (unless rented through an intermediary);
4. Units funded through government contracts for emergency/temporary shelter;
5. Units at nonprofit youth/church camps and nonprofit conference centers;
6. Units occupied by the same person for 30 or more consecutive days in a year (even if the unit changes within the same facility);
7. Military quarters for temporary occupancy by Armed Forces or National Guard members, retirees, employees, or agents.

Cities and counties may continue to impose additional local transient lodging taxes with their own rates and exemptions.

Key change:

• State rate increases to 2.75% for lodging stays beginning Jan. 1, 2027 (previously 1.5%).
• No change to statutory exemption list (ORS 320.308) as of this update.

Source: Oregon Legislature — ORS 320.308 Source: Oregon Department of Revenue — 2026 Summary of Legislation (HB 4134) Source: Oregon Legislature — House Bill 4134 (2026 session)

Oregon does not impose a general sales tax or use tax. Oregonians purchasing goods or services online do not owe use tax to Oregon on those purchases. However, Oregon does impose a vehicle use tax that applies to new vehicles purchased outside the state, which must be paid before the vehicle can be titled and registered in Oregon.

Source: Oregon Department of Revenue — Sales Tax in Oregon

Oregon imposes a 0.5% vehicle use tax on taxable motor vehicles purchased at retail from any seller and then stored, used, or otherwise consumed in Oregon. The tax applies specifically to vehicles purchased from dealers outside Oregon that must be registered and titled in Oregon. The tax took effect January 1, 2018, as part of House Bill 2017's transportation funding package.

What vehicles are taxable

A motor vehicle is taxable only if it meets all of the following criteria under ORS 320.400(5):

• Has a gross vehicle weight rating (GVWR) of 26,000 pounds or less
• If equipped with an odometer, has been driven 7,500 miles or fewer; if not equipped with an odometer, is sold with a manufacturer's certificate of origin (MCO) or manufacturer's statement of origin (MSO)
• Has never been registered or titled in Oregon, except as a dealer demonstrator
• Was purchased from a dealer (or someone who is or would be required to register as a dealer in Oregon)
• Was purchased on or after January 1, 2018

Vehicles exceeding 7,500 miles or 26,000 pounds GVWR are not subject to the tax. Trailers required to be registered in Oregon are taxable if they meet these criteria.

Tax base and computation

The use tax is computed at 0.5% (one-half of one percent) of the retail sales price of the taxable motor vehicle. "Retail sales price" means the total price paid at retail, exclusive of any excise, privilege, or use tax, and includes down payments and the value of property taken in trade, reduced by discounts and rebates given at the time of sale. The retail sales price does not include the retail value of modifications necessary for a person with a disability to enter, drive, or operate the vehicle, or customized industrial modifications to medium-duty truck chassis (GVWR 10,000–26,000 pounds).

Credit for taxes paid to other jurisdictions

The use tax is reduced—but not below zero—by the amount of any privilege, excise, sales, or use tax imposed by any jurisdiction on the sale or on the storage, use, or other consumption of the taxable motor vehicle. The reduction is allowed only upon a showing by the purchaser that such a tax has been paid.

Collection and payment

Out-of-state dealers with a physical presence in Oregon (sufficient to create substantial nexus for tax purposes) must collect the vehicle use tax from purchasers. Physical presence is generally created by employees or independent contractors who regularly work in Oregon, or ownership of real property in Oregon. Out-of-state dealers without physical presence may voluntarily collect and remit the tax, but if they do so, they must collect it on all taxable motor vehicles they sell.

If the out-of-state dealer collects the tax, the dealer must remit it quarterly to the Oregon Department of Revenue and provide the purchaser a receipt. If the dealer does not collect the tax, the purchaser must pay it directly to the Department of Revenue within 30 days of purchase. The purchaser receives a Vehicle Use Tax Payment Certificate (containing an "L number") that must be presented to the Oregon DMV before the vehicle can be titled and registered.

A 5% penalty applies if the tax is not paid by the due date. A 20% penalty is charged for not filing a return within 30 days of the purchase date. Interest accrues on any unpaid tax from the time the tax is due.

Relation to the vehicle privilege tax

The vehicle use tax is distinct from Oregon's vehicle privilege tax. The privilege tax is imposed on Oregon dealers for the privilege of selling taxable vehicles at retail in Oregon; the use tax is imposed on purchasers of vehicles bought from dealers outside Oregon. Both taxes are imposed at 0.5% of the retail sales price. Purchases from Oregon dealers do not require a Vehicle Use Tax Payment Certificate because the Oregon dealer pays the privilege tax instead.

Source: ORS 320.410 Source: ORS 320.400 (Definitions) Source: ORS 320.420 (Collection of use tax) Source: Oregon Department of Revenue — Vehicle Privilege and Use Taxes

Cities and counties in Oregon may impose local transient lodging taxes on the same base as the state transient lodging tax: the sale, service, or furnishing of transient lodging. "Local transient lodging tax" is defined under ORS 320.300 as a tax imposed by a unit of local government on the sale, service, or furnishing of transient lodging. Local rates vary by jurisdiction and are set by local ordinance. Many Oregon cities and counties impose such taxes, though not all do.

Material update — 2026 state rate increase and receipt labeling: As of June 5, 2026, the Oregon statewide transient lodging tax increases from 1.5% to 2.75% (per House Bill 4134, amending ORS 320.305). The increase must be separately stated as a "nature conservation fee" on guest receipts, but the local transient lodging tax authority and administration process remain unchanged. Where a local transient lodging tax is administered by the Oregon Department of Revenue (DOR) via intergovernmental agreement, returns will combine the updated state and applicable local taxes. Providers in DOR-administered jurisdictions should ensure their receipts and filing practices reflect the new statewide 2.75% rate and required labeling on all affected transactions. Local transient lodging taxes themselves—rates, bases, and uses—remain governed by local ordinance and the state statutes described below, subject to DOR or local administration.

July 1, 2003 moratorium and grandfathering ORS 320.350 imposes strict limitations on new or increased local transient lodging taxes enacted after July 1, 2003. A unit of local government that did not impose a local transient lodging tax on July 1, 2003 may not impose such a tax on or after July 2, 2003, unless the imposition was approved on or before July 1, 2003. Similarly, a locality that already had a local transient lodging tax on July 1, 2003 may not increase the rate above the rate in effect on July 1, 2003, unless the increase was approved on or before that date. These moratorium provisions effectively froze the landscape of local transient lodging taxes as of mid-2003, barring new taxes or rate increases unless they were already approved by that cutoff date.

The moratorium does not apply if all net revenue from the new or increased tax (after deducting the collection reimbursement charge) is used for the permitted purposes described below and complies with the revenue-use requirements of ORS 320.350(5) and (6).

Required revenue uses: 70% tourism / 30% other For any new or increased local transient lodging tax subject to ORS 320.350, at least 70% of net revenues must be used for tourism promotion or tourism-related facilities, and no more than 30% may be used for other permitted purposes. ORS 320.350(5) allows the net revenues to be used to fund tourism promotion, tourism-related facilities, or city or county services, or to finance or refinance debt of tourism-related facilities. ORS 320.350(6) imposes the 70/30 allocation requirement on those uses.

Local governments that had a local transient lodging tax in place on July 1, 2003 may not decrease the percentage of total local tax revenues actually expended for tourism promotion or tourism-related facilities after that date. A locality that agreed on or before July 1, 2003 to increase the tourism-promotion percentage must continue to honor that commitment.

The statute contains a grandfathering provision for localities that were financing debt with local transient lodging tax revenues as of November 26, 2003; those localities may continue to use the revenues to service that debt until retirement, even if the tax would not otherwise be permitted under the moratorium.

Collection reimbursement charge ORS 320.345 mandates that a unit of local government imposing a new local transient lodging tax on or after January 1, 2001 must allow the transient lodging tax collector (the provider or intermediary) to retain a collection reimbursement charge of at least 5% of all collected local transient lodging tax revenues. A locality that already allowed a reimbursement charge as of December 31, 2000 may not decrease the rate of that charge. If a locality increases an existing local transient lodging tax on or after January 1, 2001, the 5% minimum reimbursement applies to the entire tax collected, not just the incremental portion.

Administration: state-collected vs. locally collected The Oregon Department of Revenue administers local transient lodging taxes on behalf of participating cities and counties under intergovernmental agreements authorized by ORS 305.620 and ORS 320.365. ORS 320.365 directs the DOR to collect participating local transient lodging taxes on a local (not regional) basis, in the manner prescribed by the intergovernmental agreement.

Transient lodging tax collectors in participating jurisdictions report and remit both the state and participating local taxes on a single combined return filed with the DOR. The DOR's transient lodging tax webpage maintains a transient lodging administration table listing cities and counties that have entered into such agreements. For those jurisdictions, the local tax is reported on the same quarterly return as the state tax, due on or before the last day of the month following the end of each calendar quarter.

Cities and counties that do not have an intergovernmental agreement with the DOR collect and administer their local transient lodging tax independently. Providers and intermediaries in those jurisdictions must file separate returns directly with the local government, following the due dates and procedures specified in the local ordinance. The DOR webpage notes that the administration table will indicate whether a given locality's tax is administered by the state or must be filed separately with the local government.

Finding the local rate Because local rates vary widely and are set by individual city or county ordinances, the Oregon Department of Revenue instructs taxpayers to contact the city and/or county directly for the applicable local transient lodging tax rate. The DOR does not publish a comprehensive statewide rate table. Practitioners operating in multiple Oregon jurisdictions must check each locality's ordinance or contact the local tax administrator to confirm the current rate and filing procedures.

Material update: 2026 state rate increase reflected above. No change in local tax authority, base, or moratorium language.

Source: ORS 320.300 Source: ORS 320.350 Source: ORS 320.345 Source: ORS 320.365 Source: Oregon Department of Revenue — Transient Lodging Tax Source: Oregon Department of Revenue — 2026 Summary of Legislation (HB 4134)

Oregon cities and counties continue to be broadly prohibited from imposing general sales or use taxes on goods, services, admissions, or prepared food and beverages, except where expressly permitted by state statute, as of June 2026.

Statutory Prohibition: ORS 317A.158 explicitly bars cities, counties, or other political subdivisions in Oregon from levying any tax upon commercial activity, including sales or receipts, unless specifically authorized by separate statute. There is no current state law granting general authority for local sales, use, or privilege taxes on goods or services. This continues a longstanding structural prohibition in Oregon tax law.

Narrow Local Excise Tax Exceptions:

• 1. Local transient lodging tax: ORS 320.300–320.350 authorizes local governments to impose transient lodging taxes on temporary accommodations (hotels, motels, short-term rentals). These are not general sales taxes and are limited to defined lodging transactions.
• 2. Local marijuana retail sales tax: ORS 475C.674 allows cities and counties to impose a local tax of up to 3% on the retail sale of marijuana items, with collection and (optionally) administration by the Oregon Department of Revenue.
• 3. Prepared food & beverage taxes (Ashland and Yachats): In addition to Ashland's food and beverage tax, the City of Yachats now imposes a prepared food and beverage tax as of June 2026, per local ordinance and official DOR acknowledgment. No other Oregon localities are authorized or reported, in official state publications or statutes, to levy similar prepared food or beverage excise taxes on general restaurant sales.

No Other Local Sales-Type Taxes: Aside from the exceptions above, there is no statutory authority or state-confirmed occurrence of any other city- or county-imposed excise tax on general goods, services, admissions, or prepared food/beverages in Oregon as of June 2026. The Department of Revenue does not list, publish, or administer any additional local sales-type excise tax programs for these classes. Practitioners should verify with the relevant city or county for unique or very recent local measures, but no new taxes of this general type are pending, proposed, or effective according to official state sources through June 2026.

Source: ORS 317A.158 Source: ORS 320.300–320.350 Source: ORS 475C.674 Source: Oregon Department of Revenue — Marijuana Locality Tax

Not yet human confirmed.

The Oregon vehicle use tax does NOT apply to private-party (non-dealer) purchases of vehicles made outside Oregon and then brought into Oregon for titling and registration. The use tax is imposed only on vehicles purchased from out-of-state dealers—defined as persons engaged in the business of selling motor vehicles at retail or wholesale, or otherwise required to register as a dealer in Oregon—under ORS 320.400(5) and (7). If a vehicle is purchased in a private-party transaction (i.e., not from a dealer or anyone required to be licensed as a dealer), the use tax does not apply regardless of where the transaction occurred, provided the seller was not acting in a dealer capacity.

Statutory definition of 'dealer' ORS 320.400(5) imposes the tax on motor vehicles purchased from a dealer outside Oregon for use, storage, or consumption in Oregon. ORS 320.400(7) explicitly defines “dealer” by reference to ORS 802.031: "‘Dealer’ means a person engaged in the business of selling motor vehicles at retail or wholesale or as a lessor that sells used vehicles that were formerly operated under a lease, or a person required to be licensed or registered as a dealer under the laws of the jurisdiction in which the person operates or under ORS 822.005."

Example application

• Vehicle purchased from a private individual in Idaho, then brought into Oregon and registered: NOT subject to the use tax.
• Vehicle purchased from a licensed auto dealer in Washington, then brought into Oregon and registered: subject to the use tax.

Relation to titling and registration Private buyers bringing vehicles purchased from individuals (non-dealers) into Oregon for titling and registration are not subject to the vehicle use tax, but must still comply with all Oregon DMV requirements for vehicle registration, emissions, and title transfer.

Source: ORS 320.400(5) and (7) Source: Oregon Department of Revenue — Vehicle Privilege and Use Taxes

Oregon does not provide a general minimum threshold or de minimis exception for small, occasional, or low-volume providers of transient lodging for purposes of the 1.5% state transient lodging tax. All transient lodging providers—including individuals, sole proprietors, and businesses—are generally required to register, collect, and remit the state transient lodging tax on all amounts charged for transient occupancy, regardless of rental frequency or total rental income.

The only explicit statutory exception is found in ORS 320.308(3): a dwelling unit is exempt from the state transient lodging tax if it is rented to the public for fewer than 30 days in a calendar year, except when the lodging is rented through a transient lodging intermediary (such as an online platform). If any rental is arranged, booked, or facilitated by a transient lodging intermediary (including but not limited to online marketplaces, agents, or brokers), the exemption does not apply even if the number of rental days is below the 30-day threshold. In that case, the platform is responsible for collecting and remitting the tax, but the small host is not exempt based on volume alone.

There is no additional exemption based on revenue, number of transactions, or host status. All providers who make their property available to the public for transient occupancy at or above the 30-day threshold, or via any intermediary regardless of frequency, are required to comply with state registration, collection, and filing requirements under ORS 320.315 and the relevant Oregon Administrative Rules.

Summary:

• No de minimis exemption for low revenue or small hosts.
• ORS 320.308(3): Fewer than 30 days of rental/year by owner (not through any intermediary) is exempt. Any use of an intermediary removes the exemption, regardless of rental days.
• Providers meeting or exceeding these thresholds must register and file returns per ORS 320.315.

Source: ORS 320.308 Source: ORS 320.315

The City of Ashland imposes a 5% food and beverage tax on prepared foods and non-alcoholic beverages sold within city limits. Unlike a state-administered sales tax, this local tax is administered and enforced by the City of Ashland's Finance Department (Utilities Division).

Who must file: All operators of restaurants, food carts, coffee shops, grocery store delis, caterers, and other establishments selling prepared foods or beverages must obtain a City of Ashland Business Registration and collect the prepared food and beverage tax. Requirements and administration are specified in city forms and on the Finance Department's official web page. There is no published exemption for small sellers or infrequent sales in local materials.

Filing frequency: The default filing frequency is quarterly, but the City may require specific businesses to file monthly. Operators may also elect to file monthly even if not required. Returns cover either the calendar quarter or month, as applicable.

Due date: Tax returns and remittance are due on the last day of the month following the reporting period (e.g., for Q1, due by April 30). Payments not received or postmarked by the due date are subject to penalties.

Penalties for late filing/remittance:

• A 10% penalty is assessed on any portion of tax not paid when due.
• Interest accrues at a rate of 1% per month on the unpaid balance.
• If unpaid after 30 days, the tax may be referred to a collection agency, incurring additional fees.

Where to file: Returns must be filed and tax remitted directly to the City of Ashland Finance Department. The City's official Business Registration, Transient Lodging Tax, and Food & Beverage Tax page provides information on the current filing portal, including the option to file online. Questions should be directed to the Finance Department (Utilities Division).

Source: City of Ashland – Business Registration, Transient Lodging Tax, Food & Beverage Tax

Note: The City's prior fillable PDF tax return form (previous link, now broken.pdf)) is no longer accessible as of this update, and no current official PDF could be located. The City now directs taxpayers to its combined local tax portal above.

Oregon’s vehicle privilege tax is imposed under ORS 320.405–320.490 on the retail sale of new taxable motor vehicles by dealers in Oregon. Distinct from Oregon’s vehicle use tax (which applies to out-of-state vehicle purchases for use, storage, or consumption in Oregon), the privilege tax attaches at the point of first retail sale inside Oregon and is collected by the Oregon dealer.

Who is liable: The person liable for the vehicle privilege tax is any vehicle dealer “engaged in the business in this state of selling taxable motor vehicles at retail” (ORS 320.410(1)). This tax is owed by in-state Oregon dealers on their sales of new vehicles to customers, regardless of where the customer will register the vehicle. By contrast, out-of-state dealers are not liable for the privilege tax; their sales may instead trigger the vehicle use tax if the vehicle is brought into Oregon for titling/registration.

What is a taxable motor vehicle: A taxable motor vehicle is any new vehicle with a GVWR of 26,000 pounds or less, that has never been registered or titled, and that is not excluded by statute (exclusions include mopeds, motorcycles, trailers not required to be registered, vehicles purchased by certain governmental entities, and others—see ORS 320.400(4)).

Computation: The vehicle privilege tax is computed at 0.5% of the retail sales price of the new taxable motor vehicle (ORS 320.415). The base for the tax is the total purchase price paid at retail, excluding any excise, privilege, or use tax, but including down payments and any property given in trade (reduced by discounts and manufacturer rebates at the time of sale). Specific exclusions from the base cover modifications for disability access and certain industrial truck chassis modifications (ORS 320.415(2)).

Reporting and remittance: Oregon dealers are required to file returns and remit the tax quarterly to the Department of Revenue (ORS 320.425). The privilege tax must be separately stated and collected at the time of sale; the dealer is not permitted to absorb the tax and may not advertise it as included in the vehicle price. Dealers must provide purchasers with a written invoice or receipt showing the privilege tax as a separate line item.

Interaction with vehicle use tax: Sales of new vehicles by out-of-state dealers are not subject to the privilege tax but may be subject to the Oregon vehicle use tax if the vehicle is brought into Oregon for titling/registration. Oregon dealers remit the privilege tax and not the use tax. A practitioner advising an Oregon dealer must ensure return filings, collections, and disclosures comply with ORS 320.405–320.490; a practitioner advising an out-of-state dealer should advise on use tax collection only if the dealer has nexus in Oregon or elects to voluntarily collect use tax on Oregon-bound retail sales.

Source: ORS 320.405–320.490 Source: Oregon Department of Revenue — Vehicle Privilege and Use Taxes

Oregon does not require remote sellers to collect, remit, or report any sales or use tax (including any notice-and-reporting obligations) on sales delivered to Oregon purchasers, whether under physical presence or economic nexus standards adopted after South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018).

No general sales or use tax in Oregon Oregon is one of five states with no statewide sales or use tax. The absence of a sales tax means that economic nexus laws and marketplace facilitator rules established after Wayfair—enabling states to require remote sellers to collect and remit sales/use tax based on sales volume or transaction count—have no effect in Oregon. There is simply no general retail tax base to which such provisions could apply. Oregon does not impose sales tax registration, collection, remittance, or any "notice and reporting" requirements on out-of-state sellers or out-of-state marketplaces making sales into Oregon.

Remote sellers: No Wayfair-triggered obligation Remote sellers shipping goods into Oregon (to consumers, businesses, or government) bear no Oregon-level sales/use tax compliance duties. No economic nexus thresholds, safe harbors, remote seller registration requirements, marketplace facilitator collection mandates, or consumer notification/reporting rules apply for sales into Oregon. As explicitly affirmed by the Oregon Department of Revenue: "Wayfair doesn't affect Oregonians purchasing goods or services online because Oregon doesn't have a general sales tax."

Important practice note on other Oregon transaction taxes: Oregon does impose limited excise and transaction taxes in non-general contexts (notably a vehicle use tax, local food/beverage or lodging taxes, and certain sectoral excise taxes), but none of these are triggered solely by remote (out-of-state) general merchandise sales or by the economic nexus standard introduced in Wayfair. Practitioners should check the specific tax base (e.g., vehicles, lodging) when considering transactions outside the general goods context.

Source: Oregon Department of Revenue — Sales Tax in Oregon

Not yet human confirmed.