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Apparently the state of Washington has no income tax, but a high sales tax, while Oregon has the opposite tax situation. I guess it is an open secret among residents in the area that most folks avoid paying state taxes by living in WA and crossing the border into OR to buy things. The mecca for this is Vancouver, WA, where there are literally 2 major shopping centers directly on the other side of the state border.
Technically, everyone who does this is supposed to alert the WA gov't of their purchases, but it doesn't actually happen, and it is almost impossible/unpopular to enforce. A few items that can't be hidden are large purchases like RVs, boats, cars, etc. because they require state registration.
I don't enjoy cold winters, but this idea does sound enticing. Is there anything I am missing here? Property taxes are also below the national average, and I wouldn't mind a change in scenery. My only concern is the possibility that somehow the cost of living already has other little known expenses "baked in" to counteract the savings made by this loophole.
You'd still have to pay federal taxes, but an additional 6-10% in sales tax savings is not unsubstantial imho.
Also for anyone who may know more or live in the area, it sounds like the states are already well aware of this, and aren't totally thrilled about it. Is there any chance that this loophole could be closed in the near future?
All thoughts and opinions are welcome :)
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