SALEM, Ore. (AP) — Oregon tax authorities are backing away from a ruling that created a rift between the state and Facebook.
The Department of Revenue said Thursday it will change its rules so data centers like Facebook’s are assessed by local tax authorities, not by the state.
Facebook built a data center in Prineville last year with promises of tax breaks. But confusion about the company’s tax bill arose later, when the state said the social network giant could be treated like a utility company and assessed by the state.
The social network giant feared the state’s involvement would undermine its agreement with local officials in Curry County and lead to a steep tax bill.
Gov. John Kitzhaber says tax laws should be updated to reflect modern technology. But he says the Legislature won’t have time for such a complex issue until 2013.
