Taxes

Oregon is a very competitive state in terms of taxes:   

  • Oregon does not have a sales tax
  • Oregon does not have a use tax on equipment or other purchases.
  • Oregon does not have an inventory tax.
  • Oregon does not have a motor vehicle excise tax.

Corporate Income Tax—Single Sales Factor

The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative sales ($150-$100,000, approximately 0.1%) or an income-based levy of 6.6% on amounts up to $250,000 and 7.9% above that (this second tier switches to $10 million in 2013).

Oregon businesses are taxed on a portion of their total income derived from sales within the state of Oregon. This corporate income tax is considered “Singe Sales Factor” tax, as it only considers Oregon sales in determining corporate income taxes owed to the state. Other states often include additional assets and payroll, making them “multi-factor” taxes.

This aspect of the corporate income tax has a tremendous impact for multi-state companies based in Oregon. If a company is headquartered in Oregon but sells products throughout the country, or world, that company only pays Oregon corporate income tax based on the amount of income coming from sales within state lines. [Information from Business Oregon]

How the tax works

Personal Income Tax

2011 Tax rate charts
For persons filing single or married/RDP filing separately:

If your taxable income is over $50,000 but not over $125,000:
– your tax is $4,284 plus 9% of excess over $50,000

If your taxable income is over $125,000 but not over $250,000:
– your tax is $11,033 plus 10.8% of excess over $125,000

If your taxable income is over $250,000:
– your tax is $24,533 plus 11% of excess over $250,000

For persons filing jointly, head of household, or qualifying widow(er) with dependent child:

If your taxable income is over $50,000 but not over $250,000 :
– Your tax is $4,066 plus 9% of excess over $50,000

If your taxable income is over $250,000 but not over $500,000:
– your tax is $22,066 plus 10.8% of excess over $250,000

If your taxable income is over $500,000:
– your tax is $49,066 plus 11% of excess over $500,000

Property Tax

The present property tax system in Oregon has been largely shaped by Measure 5 passed in 1990 and Measure 50 passed in 1997.

Measure 5 mandates limits on the taxes imposed on real property.  The tax limits of $5.00 per $1,000 real market value for school taxes and a limit of $10.00 per $1,000 real market value for general government operating taxes means for property in Oregon the assessment cannot exceed $15.000 per $1,000 real market value for any real property.  If either the school tax rate or the general government operating rate exceeds its maximum as set in law, each corresponding tax district will have its tax rate reduced proportionally until the $15.000 per $1,000 limit is achieved.  This is called compression.

Measure 50, passed in 1997 further adjusted the property tax system by (1) switching to permanent rates; (2) reducing the value of property that is assessed the tax; and (3) limiting annual growth in the assessed value of a property.  The assessed value is now set at no more than 90 percent (90%) of the real market value of the property.  The assessed value cannot be increased by more than three percent (3%) annually.

These limitations do not include voter approved bond issuances.

For Union County in fy2011-2012 the following property tax rates applied:

 

Effective  Property Tax Rates – 2012   Union County, Oregon
Per $1,000 of Assessed Value
Cove 10.7391
Elgin 17.4010
Elgin 17.8995
Imbler 11.4369
Imbler 12.3369
Island City 11.9431
Island City 12.5245
Island City 11.5890
La Grande (UR) 16.6601
La Grande 16.6601
La Grande 16.4704
North Powder 13.4728
North Powder 14.1361
Summerville 12.3664
Union 11.1308
Source:  Union County Assessor

 

In 2010-2011, Union County had the tenth lowest average tax rate (net assessed value) for counties in Oregon.  Along the I-84 corridor from Portland to the Idaho border, Union County only rural Gilliam County had a lower rate.  Indexed to the Union County average rate, the communities on I-84 ranked as follows:

 

County Average Property Tax Rates 2010-2011 Indexed to Union County
County Average Rate Index Rating
Multnomah 19.57 150
Hood River 13.91 106
Wasco 17.51 134
Sherman 16.19 124
Gilliam 11.83 90
Morrow 16.10 123
Umatilla 15.95 122
Union 13.07 100
Baker 13.58 103
Malheur 13.84 109

 

A number of incentives related to property tax and corporate tax may be available in Union County.  See the Incentives page for more information.