Kitzhaber supports tax breaks for Facebook data centers

Reported by: The Associated Press
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Facebook unveiled its massive, 300,000 square foot Prineville campus on Friday, April 15, 2011. (Tom Raftery, Flickr)
Facebook unveiled its massive, 300,000 square foot Prineville campus on Friday, April 15, 2011. (Tom Raftery, Flickr)
SALEM, Ore. (AP) — Gov. John Kitzhaber has thrown his support behind legislation intended to clear up uncertainty surrounding the Oregon tax rules that apply to Facebook.

Kitzhaber's blessing is a step forward for the social media giant, which has feared that outdated laws might lead to an unexpectedly high tax bill at a data center in Prineville, where local officials promised tax breaks.

Facebook is backing a bill clarifying that data centers are taxed by local authorities, not the state, while tax incentives are in effect. Kitzhaber adviser Scott Nelson said Thursday the governor would sign a bill with those provisions.

Facebook lobbyist Corey Owens says the bill would secure the future of data centers in Oregon.

A mild climate and abundant energy have made Eastern Oregon an attractive place for data centers, where technology companies store data.

Copyright 2012 The Associated Press.
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repoman - 2/6/2012 8:03 AM
0 Votes
treblemaker is correct although you have to wonder, how much would the state charge them, $20,000, $10,000, $5,000? Facebook likely pays one employee twice that a year and will be offer an IPO worth that number of BILLIONS. Kinda small potatoes for such a fuss.

dodgeram - 2/5/2012 10:05 AM
1 Vote
The state of OREGON is out of O.P.M. so they will tax any one and every one as much as they cam to resupply their pot of O.P.M.. For all you liberals out there look up the definition of the word utility the one I come up with is 1: usefulness 2: regulated buisness providing a public service (as electricity)

treblemaker - 2/3/2012 8:25 PM
2 Votes
It's not "cutting taxes". The headline is misleading. The state wanted to tax them as a "public utility" (like the phone and power companies) which would have been a higher rate, mostly because the legislators don't understand what a "data center" _is_. The changes allow facebook to be taxed same as any other commercial business would be at that location.

blazermaniac - 2/3/2012 2:41 PM
1 Vote
If its ok to cut taxes for facebook, why not ALL businesses? Or, at least the ones you want to stay in America...
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