Kitzhaber signs tax guarantee sought by Nike

Kitzhaber signs tax guarantee sought by Nike
The Nike Campus in Beaverton. (File photo)

SALEM, Ore. (AP) — Gov. John Kitzhaber has signed legislation requested by athletic-wear giant Nike Inc., in exchange for expanding in Oregon.

The governor's signature on Tuesday gives him authority to promise Nike that the state won't change the method of calculating its taxes. State lawmakers approved the legislation during a special session on Friday.

"I thank the Oregon Legislature for a job well done," the governor said in a statement released Tuesday. "Faced with extraordinary opportunity to boost Oregon's economy, we have acted quickly to secure significant investment and high wage jobs. Even under sever 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."

Kitzhaber and Nike have not yet signed a contract making the agreement official and laying out specific requirements.

Oregon calculates taxes for multistate corporations based only on the company's in-state sales. Nike wants a guarantee that it won't later be taxed on its payroll expenses if it hires hundreds more workers.