Sales to nonresidents from no or low sales tax states

From the 2024 DOR Tax Exemption Study

82.08.0273 - Sales to nonresidents from no or low sales tax states Description Nonresidents are exempt from Washington sales tax on tangible personal property purchased for use outside of Washington. The exemption is in the form of a refund for state sales tax (6.5%) only. Qualifying nonresidents must meet either the following criteria: - They reside in a state, possession, or Canadian province which levies a sales tax of less than 3.0%. - Their state of residence allows a similar exemption for Washington residents. Currently, no state qualifies under this provision of reciprocity. In addition: - A nonresident may apply for a state sales tax refund once in a calendar year for all purchases made during the prior calendar year. - Applications would be accepted by the department only for refunds of $25 or more. - Sales receipts, addresses of the places of purchase, and other documentation as required by the department, will need to be submitted with the application. Purpose To enable Washington sellers, especially along the Oregon border, to compete with merchants in other states that do not levy a sales tax or levy a sales tax with a low rate. Taxpayer ($ in millions): savings FY 202