Nike (NKE) Locks-In Oregon Tax Rate for 30 Years, But Must Invest in Expansion
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Nike, Inc. (NYSE: NKE) just did it...locked in a tax guarantee, that is.
According to reports out Thursday, Nike secured a pact with Oregon that its taxes will be calculated in the same way over the next 30 years, regardless of what changes happen in the state law. To meet the agreement, Nike will need to expand its presence in the state via a $150 million in vestment leading to no fewer than 500 new jobs. Nike has until the end of 2016 to meet the goal.
Nike will also provide Oregon governor John Kitzhaber with a yearly update that details in-state expansion progress.
Oregon adopted a "single sales factor" tax rule in 2005, which has companies paying state sales tax on sales incurred in Oregon. Factors excluded include total sales, employee count, and property.
Nike is up modestly into second-quarter 2013 results, expected to be announced Thursday morning.
According to reports out Thursday, Nike secured a pact with Oregon that its taxes will be calculated in the same way over the next 30 years, regardless of what changes happen in the state law. To meet the agreement, Nike will need to expand its presence in the state via a $150 million in vestment leading to no fewer than 500 new jobs. Nike has until the end of 2016 to meet the goal.
Nike will also provide Oregon governor John Kitzhaber with a yearly update that details in-state expansion progress.
Oregon adopted a "single sales factor" tax rule in 2005, which has companies paying state sales tax on sales incurred in Oregon. Factors excluded include total sales, employee count, and property.
Nike is up modestly into second-quarter 2013 results, expected to be announced Thursday morning.
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