Economic Data

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Salem is home to a wide range of industries and private employers, with business-friendly taxes and fees and proven strengths in traded industry sectors. Abundant in natural resources, the Mid-Willamette Valley is the greatest producer of agricultural products in Oregon. The area is also a strong manufacturing and distribution region with a prime location on Interstate 5 between California and Washington. The addition of high-tech industry to the local economy has provided steady growth in manufacturing.

Quick facts

Largest employer – State of Oregon (Wikipedia)
Largest private employer – Salem Health (Wikipedia)
Unemployment rate – 4.37% (Business Oregon 2016 Labor Force Report)
Businesses within a 20-mile radius –15,665 (Business Oregon 2016 Labor Force Report)

Taxes and fees

Business tax structure is an important item for deciding where to expand or locate a business. Unlike most states, Oregon corporate income taxes are calculated solely on relative Oregon sales, according to Business Oregon.

Tax rates

Retail sales tax – None (tax-rates.org)
Corporate income tax – 6.6% to 7.6% (Business Oregon)
Personal income tax – 5% to 9.9% (Business Oregon)
Property tax – 1.5% of real market value (Business Oregon)

Salem business license fees

Salem does not require businesses to pay a general license fee. However, you need a business license to operate certain types of businesses in Salem.

Proven strengths in traded industry sectors

Traded industries are businesses who produce goods and services that are sold in a location outside where they were made.

The importance of traded industry sectors

Roy Williams, President and CEO of the Greater Oklahoma City Chamber of Commerce, is widely viewed as an expert on the traded-sector and how it drives growth in a region. In the video below, he explains this connection.

Salem’s top industry groups

Industry	Businesses	Employees	% of total
Trade, transportation, and utilities	1,798	23,547	15.80%
Education and health services	1,225	21,293	14.30%
Leisure and hospitality	895	12,313	8.30%
Manufacturing	449	11,437	7.70%
Professional and business services	1,383	11,239	7.60%
Natural resources and mining	565	11,165	7.50%

Source: Strategic Economic Development Corporation (SEDCOR)

Top Willamette Valley traded sector employers

According to the SEDCOR website:

Truitt Bros., Inc.
T-Mobile US, Inc.
Norpac Foods, Inc.
Wells Fargo Call Center
Don Poncho Authentic Mexican Foods, Inc.
Kettle Foods, Inc. / Diamond Foods, Inc.
Rainsweet, Inc.
Panasonic Econ Solutions Solar America LLC
Garmin AT
Portland General Electric
Willamette Valley Fruit Company

Workers cleaning potatoes on a conveyor belt.

The Mid-Willamette Valley is the greatest producer of agricultural products in Oregon.