CASE STUDY: Smart Growth Coalition

In 1999, several Oregon businesses – including Columbia Sportswear, Intel and Nike – forged a strategic partnership with Pac/West Communications to form the Smart Growth Coalition. The Coalition was established to improve Oregon’s position as a pro-economic growth state and to promote economic development policies that benefit both the State and businesses located in Oregon.

The Smart Growth Coalition has accomplished three major tax law changes:

• A modification of the apportionment formula from 25 percent property, 25 percent payroll, and 50 percent sales to 100 percent sales factor over the course of the 2001, 2003, and 2005 Legislative Sessions;
• Incremental increases in the cap for the Research and Development (R&D) Tax Credit from $500,000 to $2 million over the same three sessions; and,
• An expansion of the applicability of the R&D Credit to match the federal definition in 2003.

The Smart Growth Coalition was a key player in the corporate tax discussions during the 2007 Legislative Session. Although many business groups participated in the effort to create a Rainy Day Fund, few were as intimately involved in the day-to-day work as we were. Ultimately, Oregon’s Rainy Day Fund was established after a remarkable show of bipartisanship in both the House and the Senate.

The key to our success over the last eight years has been a proactive strategy coupled with an active pursuit of bipartisan support for our proposals. The Smart Growth Coalition has worked very hard to educate legislators across the political spectrum and continues to play a key role in developing economic development proposals. Moving forward, our plan is to work closely with legislative leaders and the Governor’s Office in order to defend our progress and to continue our work to advance Oregon’s competitive advantages.