|How Oregon taxes stack up||| Print ||
|Articles - November 2009|
Oregonians will vote in January on two measures already passed by the Legislature that would increase taxes and raise $733 million over two years. A survey of other states’ taxes shows that while Oregon’s corporate income tax hike is far from radical, other changes make Oregon’s taxes look more extreme.
Corporate income tax: The measures keep the current rate — 6.6% of net income — for the first $250,000, but income over $250,000 will be taxed at 7.9% for the 2009 and 2010 tax years. That marginal rate drops to 7.6% for 2011 and 2012. Starting in 2013, income under $10 million will be taxed at 6.6% and income over $10 million will be taxed at 7.6%.
How’s it stack up? Oregon’s new tax rate is the 20th worst in the nation, according to the Tax Foundation, a nonpartisan nonprofit that collects data on tax policy. New Hampshire has the highest corporate income tax, at 8.5% on sales over $50,000. Fives states including Washington have no “corporate income tax,” but Washington has a tax on gross receipts called the “business and occupation tax” that ranges from .003% to .033%.
Individual income tax: One of the measures added a new bracket for income over $125,000 for individuals and $250,000 for households, to be taxed at 10.8%. Individual income over $250,000 and household income over $500,000 will be taxed at 11%. The 10.8% rate will drop to 9.9% in 2012.
How’s it stack up? The Tax Foundation ranked Oregon’s new personal income tax sixth worst in the nation. New York was worst with seven brackets maxing out at 8.97% on all income over $500,000. Alaska and Washington are two of the seven states with no personal income tax.
Corporate minimum tax: All businesses in Oregon were required to pay the state $10 in years when taxable income was zero or offset by tax credits. If the legislation survives, Oregon will go to a graduated minimum tax for C-corporations with 12 different rates, starting with $150 a year for companies with sales of less than $500,000 and maxing out at $100,000 a year for companies with sales of $100 million or more. The minimum tax for S-corporations and partnerships will be $150.
How’s it stack up? Sixteen states have a flat minimum corporate tax ranging from $10 in Louisiana to $800 in California; New York has a graduated tax that maxes out at $5,000, making Oregon’s new corporate minimum tax the most severe in the nation for companies with revenue in the millions.
Federal deductibility: Oregon’s federal tax deduction is capped at $5,850 for individuals making under $125,000 and households making under $250,000. Now the deduction is capped at graduated levels for individuals in the $125,000 to $145,000 range and households in the $250,000 to $290,000 range. Individuals making $145,000 or more and households making $290,000 or more cannot deduct for federal income tax.
How’s it stack up? Oregon is one of only six states that offer any deduction for federal income tax; only four do not cap the deduction.
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Oregon Business magazine's 5th annual
100 Best Green Companies to Work For in Oregon
Wednesday, May 29, 2013
From Oregon Translational Research and Development Institute: OTRADI today announced its plans to open and operate a 13,000 square-foot multi-tenant bioscience complex in the Willamette Wharf building at 4640 SW Macadam Avenue. Slated to be complete in spring 2013, the OTRADI Bioscience Incubator (OBI) will house up to six companies.
MEDIAmerica, publisher of Oregon Business and Oregon Home magazines, announces a new retail website: HalfOffOregon.com. The website offers lodging, dining, recreation and many other items at half off their regular cost.
As you probably know by now, The Vernon Company is a national leader in the promotional products industry with annual sales of over $60 million. We are a family owned business, led by the fourth generation of the Vernon family.