Are there any changes to your state's tax and/or regulatory code that you are proposing in order to encourage business development?
Kitzhaber: Oregon already has a highly competitive business tax climate. As governor, I have initiated discussions about a bill I will introduce to create favorable capital gains treatment for reinvestment in Oregon.
It is always important to remember that Oregon does not have a:
• General sales and use tax
• Receipts/revenue tax
• Inventory tax
• Worldwide unitary tax
• Motor vehicle excise tax
• State capital tax on asset value
• Direct levies on intangible properties, e.g., stocks, bonds
In addition, 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 a "Single Sales Factor" tax, as it only considers Oregon sales in determining corporate income taxes owed to the state.
This aspect of the corporate income tax has a tremendous impact for multistate 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.
And finally, just as we've seen important farmland get eaten up with low-density sprawl in Oregon, we're seeing strategic locations for high-density industry falling to the same fate.
Newly introduced industrial lands legislation will protect and improve regionally-significant industrial areas, and will speed up permitting for projects of state significance - those projects that create high economic value for an area, have local support, and are expanding or locating in an appropriately planned area.
By protecting and designating these industrial areas, we can insure that a local community has access to family-wage manufacturing jobs, helping to develop the community rather than stifle it with a low-wage economy.