Oregon's Proposed Gigabit Tax Break Written With Google Fiber In Mind

An Oregon Senate committee has proposed an unusual tax break, designed to help lure Google Fiber or other hyperfast Internet services to the Portland area. The language would cap property valuation when it comes to a thorny element of Oregon's tax code, "central assessment," which makes telecom companies liable for the worth of their brand and other intangible assets.

Google Fiber announced in February that it has delayed a decision on serving Portland until later in 2015. Google hasn't commented on the reasons behind the delay, but public officials say the company has indicated central assessment is one issue standing in the way of a decision. Senate Bill 611 would exempt data centers from central assessment altogether and cap the valuation of cable TV and telecom companies based on a formula of historical value. The bill won unanimous approval from a State Senate committee. In a novel provision committee members added, the bill effectively exempts Internet service providers from central assessment provided they offer superfast "gigabit" Internet service.