Business Cost Comparisons

Example annual cost of running a small business in Oregon

  • Oregon manufacturing firm with 20 employees looking to relocate
  • $2 million in real property
  • $6 million in equipment
  • Sells 50% of its product in-state; 50% out-of-state
  • $7.5 million in annual sales resulting in $25,000 taxable income
  • Consumes 120,000 kWh electricity per month; 7,800 kcf natural gas per year
20-Employee Firm Oregon California Washington
Energy costs $149,760 $194,820 $140,016
Employee gross payroll $903,900 $879,680 $1,007,720
Social insurance $27,669 $29,142 $33,399
Corporate income/other taxes* $2,000 $1,658 $36,300
Annual property tax $125,600 $85,600 $72,000
Annual tax on current purchases $0 $33,975 $32,438
Tax on capital purchases $0 $543,600 $1,305
Total operating costs, initial capital taxes $1,208,929 $1,768,474 $1,323,177
Difference from Oregon
+ $559,545 + $114,248

Example annual cost of running a large business in Oregon

  • Oregon manufacturing firm with 200 employees looking to relocate
  • $20 million in real property
  • $60 million in equipment
  • Sells most of its product out-of-state
  • $75 million in annual sales resulting in $4 million taxable income
  • Consumes 1,200,000 kWh electricity per month; 78,000 kcf natural gas per year
200-Employee Firm Oregon California Washington
Energy costs $149,760 $1,948,200 $1,400,160
Employee gross payroll $9,039,000 $8,796,800 $10,077,200
Social insurance $276,694 $291,417 $333,986
Corporate income/other taxes* $59,950 $212,160 $363,000
Annual property tax $1,256,000 $856,000 $720,000
Annual tax on current purchases $0 $339,750 $324,375
Tax on capital purchases $0 $5,436,000 $13,050
Total operating costs, initial capital taxes $12,129,244 $17,880,327 $13,231,771
Difference from Oregon
+ $5,751,093 + $1,102,527

*"Other taxes" includes any relevant business taxes that states would apply to the business used in the example.

This analysis is for illustrative purposes and not tax advice, actual results may vary. Contact a tax professional with any tax-related questions you may have.