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]
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.