State to State Comparisons of Business Factors
Not surprisingly, Oregon's cost advantage over many other states lies in its business-friendly tax structure. For an overview of how Oregon's tax system works for businesses, see our website page on Oregon's Tax Environment.
We show below, for five neighboring states, many of the common business factors site selectors and business owners use to compare new business locations. Oregon doesn't have the absolute lowest rate in all categories, but with so few taxes exacted on businesses, the overall tax burden is quite modest.
| Interstate Business Cost Comparison in Neighboring Western States |
| Business Factor |
Oregon |
California |
Idaho |
Nevada |
Utah |
Washington |
| Avg Industrial Electricity Rate ¢/KWh (YTD Q3 2008) |
4.97¢ |
10.28¢ |
4.56¢ |
8.28¢ |
4.68¢ |
4.78¢ |
| Avg Industrial Natural Gas Price $/kcf (2007 average annual) |
$9.31 |
$9.02 |
$9.40 |
$11.77 |
$6.35 |
$9.79 |
| Avg Annual Wage for Production Occupations (May 2007) |
$31,890 |
$30,800 |
$29,120 |
$30,850 |
$29,240 |
$36,320 |
| Unemployment Insurance for NEW Employer Rate (2007) |
2.40% |
3.50% |
4.30% |
3.05% |
2.22% |
2.25% |
| Workers Comp (Indexed Premium/$100 payroll, 2006) |
$1.97 |
$4.13 |
$2.29 |
$2.36 |
$2.06 |
$2.17 |
| Corporate State Net Income Tax Rate (2007) |
6.60% |
8.84% |
7.60% |
0.00% |
5.00% |
0.00% |
| Effective Property Tax Rate on Real Property * |
0.85% |
1.10% |
1.46% |
1.02% |
1.30% |
1.05% |
| Effective Property Tax Rate on Personal Property * |
1.52% |
1.10% |
1.46% |
1.02% |
1.30% |
1.05% |
| State Sales & Use Tax Rates |
0.00% |
6.25% |
6.00% |
6.50% |
4.65% |
6.50% |
| Max Local Sales and/or Use Tax Rates |
0.00% |
2.50% |
3.00 |
1.25% |
3.60% |
2.50% |
| General Use Tax on Current Expenses |
0.00% |
7.95% |
6.00% |
7.56% |
6.69% |
8.58% |
| Sales or Use Taxes on Construction Costs |
No |
7.95% |
6.00% |
7.56% |
6.69% |
8.58% |
| Machinery/Equipment Tax |
No |
No |
No |
7.56% |
No |
No |
| Real Estate Transfer Tax |
0.00% |
0.00% |
0.00% |
0.45% |
0.00% |
1.305% |
Source: Oregon Economic and Community Development, Business and Trade Development Division, 2008; pertinent extracts
* Deschutes County Effective Tax rate, 2009
Because of its business friendly environment, livability and wage structure, Central Oregon has been attracting new companies and residents for the past decade and a half. Below are some recent examples of national studies, using quantitative analysis, that have showcased Central Oregon's business climate, entrepreneurship and job creation:
- Milken Institute, September 2008, ranked Bend (Deschutes County) overall #3 of 124 smaller metros and #2 in terms of job growth. Milken's annual index provides a snapshot of where America's jobs are being created and sustained, factors in both long- and short-term indicators of employment and salary growth, as well as technology output measurements. See table below for a comparison of smaller cities in the West with which Central Oregon is frequently evaluated. Check out the full rankings at the Milken Institute.