City Government
The City of Oak Ridge operates under the leadership of a city council/manager form of government. Seven at-large council members are elected to four-year terms, with that group electing a mayor and mayor pro tem.

Tax Incentives
Oak Ridge businesses have one of the lowest per capita tax burdens in the U.S. There is no state tax on personal income or property, and several tax incentives help companies operate more profitably.

Corporate Excise Tax

• Net operating losses carry forward 15 years.
• Companies receive 1 percent credit on the purchase, installation or repair of qualified industrial machinery.
• All capital losses can be claimed in the year incurred.

Sales and Use Tax

• No sales tax on raw materials or industrial machinery used for the fabrication of a product.
• No sales tax on repairs to industrial equipment.
• No sales tax on pollution control equipment.
• Reduced sales tax for manufacturers' use of energy fuel and water; exempt if used directly in manufacturing process.

Property Tax

• No property tax on finished goods and goods-in-process inventories.
• No property tax on goods in transit.

Franchise Tax

• No franchise tax on pollution control equipment.
• No franchise tax on property under construction that is not being used by the company.
• Property leased from an industrial development board may be capitalized on the corporate books.
• An eligible business may receive a jobs tax credit of between $2,000-$4,500 per new full-time employee if it meets requirements of increased employment and additional capital investment.

Additional Incentives

• Accelerated depreciation of machinery and equipment.
• Credits available for companies that establish day care programs for children of employees.

Tax Summary

* Ratio Assessment:

Residential 25%
Industrial 40%
Personal (Equipment) 30%