Oregon Adopts Alternative Filing Method for Vehicle Use Tax

Oregon adopted a temporary regulation allowing a vehicle use tax alternative filing format for certain taxpayers purchasing taxable motor vehicles outside Oregon. The temporary rule is needed to provide taxpayers an alternative to filing daily tax returns based on an estimated purchase price and later filing amended returns to correct the true purchase price reflecting the correct tax amount.

Temporary Filing Justification

This administrative rule will provide an alternative filing format for licensed Oregon dealers who submit title and registration application to DMV using the Electronic Vehicle Registration system, to report vehicle use tax owed on purchases of taxable motor vehicles from dealers located outside of Oregon. The temporary rule is needed because:

– The taxpayer will be required to continue filing vehicle use tax returns and make tax payments daily and amend tax returns when the retail sales price is not known at the time the vehicle use tax return is filed;

– Taxpayers who are licensed Oregon dealers purchasing taxable motor vehicles outside of Oregon for business use in Oregon;

– Immediate rulemaking will allow taxpayers to immediately cease filing returns and making payments daily; and

– Temporary rulemaking will allow taxpayers to file one return and make one payment to report taxable motor vehicles purchased in the months of November and December in 2018.

OAR 150-320-0430, Oregon Department of Revenue, effective October 26, 2018 through April 23, 2019

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CCHTaxGroup

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