February 2007 Ernst & Young Tax Study
Study ranks Oregon business tax climate 4th best in the nation. An Ernst & Young study published earlier this year measures effective Business State and Local Tax Rate (ETR), examining the “tax burden” specific to businesses. Simply put, ETR is the ratio of business taxes to private-sector economic activity. Across all states, Oregon ranks 4th. While the ETR averages 4.9% across all states, the range is considerable, from a low of 3.6% to a high of 9.7%. At 3.8%, Oregon’s Effective Tax Rate is among the lowest -- only Delaware, North Carolina and Virginia are lower. Regionally, Oregon also fares very favorably when compared with other key western states vying for the same economic development proposals.
|
Key Western States |
|
Effective Tax Rates (ETR) |
|
Rank |
State |
ETR |
|
4 |
Oregon |
3.80% |
|
12 |
Idaho |
4.30% |
|
22 |
Nevada |
4.60% |
|
25 |
California |
4.80% |
|
43 |
Washington |
5.80% |
|
|
|
5 States with LOWEST |
|
Effective Tax Rates (ETR) |
|
Rank |
State |
ETR |
|
1 |
Delaware |
3.70% |
|
1 |
North Carolina |
3.70% |
|
1 |
Virginia |
3.70% |
|
4 |
Oregon |
3.80% |
|
5 |
Connecticut |
3.90% |
|
5 |
Utah |
3.90% |
|
|
|
5 States with HIGHEST |
|
Effective Tax Rates (ETR) |
|
Rank |
State |
ETR |
|
50 |
Wyoming |
9.60% |
|
49 |
Alaska |
9.30% |
|
47 |
West Virginia |
6.60% |
|
47 |
North Dakota |
6.60% |
|
46 |
New Mexico |
6.30% |
|
For the full study, click here.