Moving Your Business to Hillsboro

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The following page contains useful information for businesses considering operating within the greater Hillsboro area.

Operating a Business in Hillsboro

This guide provides new businesses with helpful resources and information.

Site Selection

Serviced industrial property is readily available in the Hillsboro area. We assist companies with locating industrial sites or buildings which will meet their needs by working with brokers and developers. A customized site proposal will be developed based on the client’s requirements.

Workforce

The Washington County Workforce Alliance, a group of Washington County employment and training organizations, provides customized recruitment, training, retention and outplacement services to meet business needs.

Regulatory Standards and Issues

The City works closely with the Oregon Business Development Department to resolve issues that impede potential industrial development. This state agency advises, refers, and coordinates meetings between local government, business and other state regulatory agencies.

Transportation

Easy access to transportation routes and services are key in today’s global economy.

Hillsboro is conveniently located adjacent to US Hwy 26 and 30 minutes west of Interstates 5 and 84.  Tri-Met, the public transportation system for the metro area, serves Hillsboro by bus and light rail.  Hillsboro is the western terminus of the 33 mile metropolitan light rail line which links Portland's west and east suburbs as well as the Portland International Airport to the north.

Air

The Portland International Airport (PDX) is the only passenger airport served by the major airlines in the metropolitan area.  Located approximately 45 minutes from Hillsboro, full service daily passenger and cargo flights to major cities are available.

The Hillsboro Airport is Oregon's busiest general aviation airport, with more than 200,000 operations annually.  With its two runways (6,600' and 4,049') and four full service fixed base operators, the airport provides all the facilities to support jet and propeller driven aircraft and helicopters.  Charter companies fly their aircraft and helicopters in and out of Hillsboro airport and flight instruction is also available. A restaurant and hotel are located at the airport along with rental car services at the terminal.  Several major corporations have hangars at the Hillsboro airport.  The Hillsboro airport is managed by the Port of Portland.

Marine

The Port of Portland manages the only deep draft port in the region.  Terminal 6, located in north Portland, west of Interstate 5, is the region's primary container and auto handling terminal with vessels calling daily.  Barge handling capabilities as well as direct ship to rail access to inter-modal containers are available.  Located about 45 minutes from Hillsboro, drayage companies find the easy access to US Hwy 26 convenient when transporting goods to and from the Port of Portland.

Business Cost/Advantages

• No sales tax
• No inventory tax
• No worldwide unitary tax
• No motor vehicles tax
• No business income tax in Hillsboro or Washington County
• No direct levies on intangible properties, such as stocks, bonds and securities.

Infrastructure Services

Coordinated meetings between a prospective client company and private utilities are often arranged and attended by the City staff to discuss requirements, quality, cost, and service in a team approach. A summary of the City’s water and wastewater services as well as the planning and building permit process can be found under Major Service Areas and Building Permit Process for Industrial Users. The 2009 Hillsboro water quality analysis is also available.  Hillsboro's power provider is Portland General Electric (PGE).  PGE has a total combined generating capacity of 1,957 megawatts and they also operate several Reliability Centers throughout the region.  The Sunset Reliability Center in Hillsboro is designed to meet the unique needs of high-tech manufacturers and companies with power-sensitive operations, including Intel Ronler Acres. 

NW Natural is the natural gas provider which serves residential, commercial and industrial customers in western Oregon and southwest Washington.

State Tax

Personal and corporate excise taxes and a state lottery are used to support programs provided by the State of Oregon.

• Personal Income Tax
• The current maximum rate is 9 percent, which applies to single returns with a taxable income greater than $5,000 and on joint returns greater than $10,000.
• Corporate Income Tax
• Oregon applies a 6.6 percent tax against net Oregon revenue. Additional income tax information including tax forms can be found at the Oregon Department of Revenue.
• Unemployment Insurance
• Employers are subject to the following requirements: (1) Employers need to register with the Employment Department by completing and sending a Combined Employer´s Registration to the Oregon Department of Revenue,(2) Post a notice provided by the Employment Department, concerning unemployment insurance, where employees can read it, (3) Keep adequate payroll records, (4) Pay taxes or reimbursements when due, (5) File quarterly reports on time, and (6) Inform the Employment Department of any changes in status or organization.
• Additional information can be obtained from the Oregon Employment Department, Unemployment Insurance Division.
• Workers Compensation Insurance
  
• Average premium workers compensation rates will remain flat for 2005, indicating three consecutive years of stable rates after twelve consecutive years of rate reductions – a national record representing substantial cost savings for Oregon employers.
• The cumulative cut in workers compensation insurance premium costs since 1990 totals 57.4 percent, with resulting savings to employers of approximately $10.1 billion.
• In 1986, Oregon’s national ranking in workers’ compensation costs was the sixth highest in the nation. In 2002 it ranked 35th.

Local Tax : Property Tax

City of Hillsboro funding is primarily derived from Washington County property taxes.

The average tax rate Hillsboro residents pay Washington County is approximately $16.00/$1000 of taxable assessed value. Of that rate, the City of Hillsboro receives $5.3865 for 2008-2009 including a local option tax to enhance service levels for Police, Fire and Parks and Recreation maintenance.

The property tax applies to privately owned real property and personal property (equipment and supplies) used to produce income or capable of producing income.

The following is a breakdown of revenue each public agency receives from the total tax rate in Hillsboro, Washington County:

The City of Hillsboro is a full service City, providing police, fire, parks and recreation and public library services to its citizens. After the implementation of Ballot Measure 50 in 1997, the State no longer has a property tax base system but rather a property tax rate system. The Oregon Department of Revenue determined what is now called permanent property tax rates for all local jurisdictions. This rate is applied to municipalities’ assessed value annually to determine taxes owed on a property. Measure 50 caps assessed value increases at 3% per year plus any increase due to changes to property, such as new construction that exceeds $10,000 in a given year. The City’s permanent rate is $5.3865 per $1,000 of assessed value. The City’s assessed value for 2008-2009 is $7,963,202,164.

Washington County Transfer Tax

This fee is imposed on each transfer of real property located within Washington County. Transfer of real property includes every grant, sale, exchange, assignment, quitclaim, contract of sale or other conveyance or ownership in title to real property. The fee is one dollar per thousand dollars or fraction thereof, of the selling price. Transfer tax is due within fifteen days of the recording of the instrument transferring real property. Liability for the fee is attached to the purchaser and seller.

Transit Tax (Tri-Met District Tax)

The transit tax program is administered by the Oregon Department of Revenue on behalf of the Tri-County Metropolitan Transportation District (Tri-Met) and applies to the Portland metropolitan area.

Effective January 1, 2009, the rate is 0.6718 percent ($6.718 per $1000) of the wages paid by an employer and the net earnings from self-employment for services performed within the TriMet District boundary.  Employers should apply the rate with their reporting related to wages for the first quarter of 2009.  Self-employed individuals should use the new rate when first reporting earnings for 2009. 

For more information and registration forms, please see the Oregon Department of Revenue website or contact them by phone at 800-356-4222 or in Salem at 503-378-4988 or by email at questions.dor@state.or.us.