SALEM -- Governor John Kitzhaber Tuesday approved a tax measure sought by Nike Inc.
The world's largest athletic apparel company had said that it would expand in Oregon if the state could allow Nike to continue using the current corporate tax structure regardless of any future changes by the Legislature.
"I thank the Oregon Legislature for a job well done. Faced with extraordinary opportunity to boost Oregon's economy," Kitzhaber said. "we have acted quickly to secure significant investment and high wage jobs. Even under severe time pressure, the Legislature allowed for an effective public process while deliberating with civility and respect. It's a big day for Oregon and our commitment to get Oregonians back to work."
Last week, the 55-5 house vote sent the measure to the Senate.
For multistate corporations, Oregon calculates income taxes based only on the company's sales in Oregon.
The seven-year-old model results in substantially lower tax bills for companies like Nike with high payroll costs and low sales in the state. Nike employs 8,000 people in Oregon and says it will hire at least 500 more.