Metrofactual

Next time you’re grumpy about your company’s taxes, take heart: The corporate tax climate here really isn’t so bad.

Tax burden for companies in Oregon and Washington, each of which has a piece of greater Portland, is lower than in most other states, according to the Tax Foundation. Ranking states for “best business tax climate,” the Foundation places Oregon 9th and Washington 12th.

Similarly, accounting experts at Ernst & Young, who calculate “total effective tax rate” by taking into account property, receipt and sales and income taxes, cite Oregon’s as second-lowest in the U.S., at 3.8%; Washington’s is 5.8%. Delaware’s total effective tax rate is the nation’s lowest, at 3.5%, and Alaska’s the highest, at 11.6%.

Greater Portland companies have another tax advantage on either side of the Columbia. Oregon has no sales tax, which can be a boon for companies making big equipment purchases. And Washington has no state income tax, a selling point for prospective employees.

More tax facts:

Oregon’s corporate income tax rate of 6.6% is 16th-lowest in the nation. California’s rate of 8.8% ranks it seventh-highest.
Oregon collects $120 per capita in corporate taxes, while California hauls in $286.

Though the global economic galaxies are aswirl, Oregon stars are rising.

When Fortune released its annual public company rankings last month, Precision Castparts (no. 444) garnered a deserved round of hurrahs for its debut, having joined Oregon’s other Fortune 500 company, Nike (no. 153).

It wasn’t the only good showing. Of the six Oregon companies that now rank among the Fortune 1000, each rose from its last-year placement.

Among them, shining like the metals it recycles, was Schnitzer Steel, Oregon’s 102-year-old scrap metal recycler, which made the biggest jump, from no. 901 to no. 757, with revenues of $2.6 billion.

And Schnitzer continues to rise. In Q2 of fiscal year ’08, revenues increased 24% and profits 29%. Q3 looks even brighter. Shares have gone up 8% this year.

“The scrap metal business hasn’t looked this good in years,” notes Barron’s blogger Bob O’Brien. “You know you’re in a rising commodity environment when even junk has gotten expensive.”
Metrofactual Department of Kudos
Beer.We know about all about greater Portland’s prolific brewpubs (Metrofactual v.7). Now here’s big news about their brews: They’re really good. That’s what judges concluded at last week’s 2008 World Beer Cup, where greater Portland breweries claimed more medals (nine) than those of any other city in the world.
With nearly 3,000 beers vying for recognition, Bridgeport, Hopworks, Pyramid, Widmer and Laurelwood brews were among the 268 that took home awards.

Bikes. The League of American Cyclists has blessed greater Portland with the coveted platinum rating as a “Bicycle Friendly Community” – the first large U.S. metro to gain the designation.
The award is a big precious-metal step up from the gold we received in 2003.
“Bold leadership, community-wide involvement, and a lot of hard work have resulted in a 144% increase in bicycle use since the 2000 Census – impressive results by any standard,” says League president Andy Clarke.

Buddies. When Metrofactual welcomed Vidoop here a few weeks back, the Tulsa computer-password software firm was bringing an engineering group to Portland. Now the whole of Vidoop is pulling up its Oklahoma stakes and heading for a new home in Portland’s Old Town.
With eROI sharing its building, Jive Software a few blocks away, and greater Portland’s 13,420 software workers to make them feel at home, Vidoop’s transition should be an easy one. Check them out. Or go find them hanging at Backspace coffee shop.

For companies scrutinizing their energy options, greater Portland offers a trifecta of assets: price, reliability and sustainability. When it comes to electric power, the region stacks up nicely.

It’s cheap. Overall, electricity in greater Portland averages just 7.49 cents per kilowatt-hour, eminently affordable by California metro standards (check out San Diego’s whopping 15.07 c/kWh). Our industrial rate of 5.83 is also a relative bargain: Los Angeles companies pay 8.78 cents/kWh, while their San Diego neighbors shell out a steep 10.40 cents/kWh.

It’s reliable. In greater Portland, we’ve averaged 0.8 major outages per year for the last five years. Seattle’s experienced twice that, and San Francisco has had more than six times the outages, at 5.2 per year. Our outages, too, are smaller than others’: In a typical year we lose 122 megawatts, while Seattle loses 323MW and San Francisco 933MW.

It’s green. Statewide, 75% of Oregon’s power comes from hydroelectric and other renewable sources, and Washington does slightly better at 78%. Less than 5% of the mix in each of Oregon and Washington comes from gas and coal. In California, renewables make up 33% of the mix.
More Metrofacts:

Greater Portland’s industrial electricity prices rank fourth-lowest and commercial rates fifth-lowest among the metros noted above.
Statewide, Oregon’s natural gas is a relative bargain as well, with rates 11% lower than California’s and 16% lower than Washington’s.
The cost of power is the number two concern of small businesses, says the National Federation of Independent Business. Number one? Health care.

Sources: State Electricity Profiles, 2006, Energy Information Administration; Electric Power Monthly, March 2007, Energy Information Administration; EIA Form EIA-417; Small Business Problems and Priorities Survey, 2008, National Federation

You know greater Portland is a cool place to live and do business. But to really know how cool, you’ve got to know the competition.

Here’s a test of your awareness of greater Portland’s competiveness.

1. In the next five years, greater Portland’s population is projected to grow by:
a) 2% b) 4% c) 6% d) 8%

2. In the company of Seattle, Denver, Austin, San Francisco and L.A., greater Portland ranks No. 1 on which of these metrics? (Hint: there’s more than one.)

a. Lowest cost of living
b. Most public wi-fi spaces
c. Lowest one-bedroom apartment rent
d. Least hours of traffic delay
e. Most brewpubs (duh!)

3. San Francisco has the greatest concentration of same-sex couples, compared with the metros listed below. Which metro ranks second?
a. Los Angeles
b. Portland
c. Denver
d. San Diego
e. Seattle

4. Which metro’s gross regional product is projected to grow faster than that of greater Portland in the next five years?
a. L.A.
b. Seattle
c. Denver
d. San Francisco
e. none of the above

5. Greater Portland had more inventor patents in 2007 than all but which metro:
a. San Francisco
b. Seattle
c. Los Angeles
d. Austin
e. Denver

6. The median housing price in greater Portland is:
a. about one-third that of San Jose’s
b. nearly $100,000 less than Seattle’s
c. half as much as L.A.’s
d. all of the above

7. Greater Portland’s Class A office space is (choose one):
a. more expensive than Denver’s.
b. two-thirds the cost of Seattle’s.
c. least expensive of the competitors (Denver, Seattle, San Francisco, Los Angeles, Austin).

Quiz answers
1. d. The region is projected to have 2.4 million residents by 2013.
2. d, e. Compare greater Portland’s annual traffic delay of 38 hours with Austin’s 49, San Jose’s 54 or L.A.’s 72.
3. b
4. e
5. d. Greater Portland had 2,987; Austin had 7,540.
6. d
7. b. At $25.30 per square foot, it’s a bargain. Only Austin’s is cheaper.