Comcast drops bid for “gigabit” tax cut that was created for Google Fiber

Comcast has agreed to pay $155 million in back taxes to Oregon in order to settle a nine-year property tax dispute. Comcast will also drop its attempt to secure a tax break that OR created as part of a failed attempt to bring Google Fiber to the state. Gov Kate Brown (D-OR) announced the settlement with Comcast, noting that the legal battle "likely would have continued for many more years because several distinct and complex legal questions were in dispute." OR accepted the $155 million payment despite previously arguing that Comcast owed $200 million. The cable TV company's fight with OR tax collectors dates to 2009, when the state changed its methodology for assessing Comcast's telecommunications equipment. 

The tax is an unusual one, using "central assessment" to tax a company's property based on such nebulous factors as the value of the company's brand. Comcast sued, and the state Supreme Court ruled against Comcast in 2014. The company didn't pay up, though, continuing to contest aspects of the Oregon tax law. Under the settlement, "Comcast acceded to the central assessment methodology," Gov Brown's announced. The settlement will also affect what Comcast pays in future taxes. The OR legislature in 2015 voted to reduce property taxes for companies that offer gigabit-speed Internet service. That move was designed to lure Google Fiber to the state, but Comcast ended up seeking the tax break when it started offering gigabit speeds. But under the settlement, Comcast "agreed to withdraw its gigabit exemption application," Gov Brown's announcement said. "If approved for the exemption, Comcast's property tax burden would have been significantly reduced."