Oregon’s Business Climate gets Top Ranks from
Nationwide Study on Tax Structure
Contributed by Perrin Damon, OECDD
A report by Ernst and Young on state business taxes for FY2007 pronounces Oregon's position as one of the lowest business tax rate structures in the United States. The report uses three measures to evaluate tax structures from state to state:
- The total effective business tax rate (business taxes as a percentage of private sector economic activity);
- The business share of total state and local taxes; and
- The ratio of business taxes relative to the value of public services benefiting businesses.
In those three measures, Oregon has the second lowest effective business tax rate in the country; the third lowest business share of total state and local taxes; and the lowest overall ratio of business taxes relative to the value of public services benefiting businesses. "This report affirms Oregon is a great place to do business," said Oregon Governor Ted Kulongoski. "Oregon’s leadership in sustainable industries, low business costs, a skilled workforce, global transportation access and a premium quality of life, all come together to make Oregon a global competitor as a business location."
Oregon has seen many business development projects come to fruition recently, particularly in the renewable energy industry. Recent photovoltaic business recruitments Solaicx, SolarWorld and Peak Sun are investing more than $500 million into their facilities right now, with expansions already planned for the near future. This growth puts Oregon on track to become the largest photovoltaic-producing state in North America by next year.
While the study outlines Oregon’s position as a low-tax location, businesses are also attracted to the quality of life Oregon provides for employees. "Oregon must not only compete on business costs, infrastructure and other factors, but we’re also competing to create, recruit and retain a skilled workforce," said Tim McCabe, acting director of the Oregon Economic and Community Development Department. "The best and brightest want to live not only where they can find satisfying jobs with innovative companies, but in a place that offers an outstanding and unique quality of life, and that’s Oregon."
The report can be found online here: www.oregon4biz.com/taxstudy07.pdf
