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posted by martyb on Saturday May 28 2016, @10:31PM   Printer-friendly
from the no-nonsense-oregonians dept.

El Reg reports

The US state of Oregon says it will charge Comcast tens of millions of dollars in taxes after revoking a tax break the cable giant had claimed on its broadband service.

The state's Department of Revenue (DOR) has denied a request by Comcast that it be granted an exemption reserved for companies that offer gigabit internet service in the state.

Written to lure Google's Fiber service to Portland after years of courtship, the tax break would give exemptions to reward the installation of high-speed fiber broadband.

Comcast [claimed] its "Gigabit Pro" service tops out at 2Gbit/s and thus made the cable giant eligible to claim the same breaks as Google.

The DOR, however, did not agree, and it ruled earlier this week that Comcast will have to pay the taxes.

[...] Critics of Comcast have previously argued that the Gigabit Pro service is prohibitively expensive (up to $4,600 a year) and only reaches a small number of Oregon residents.

[...] Both Google and Frontier also had their applications denied because neither has an active gigabit service in the state.


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  • (Score: 2) by PinkyGigglebrain on Saturday May 28 2016, @10:51PM

    by PinkyGigglebrain (4458) on Saturday May 28 2016, @10:51PM (#352069)

    Comcast will appeal, then sue, then drag this out for years and at worst end up paying pennies on the dollar of their tax bill while the state's tax payers get pay for it all, both in taxes and in higher rates from Comcast.

    All the while the lawyers will be raking in the billable hours.

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  • (Score: 2) by butthurt on Saturday May 28 2016, @11:50PM

    by butthurt (6141) on Saturday May 28 2016, @11:50PM (#352083) Journal

    An earlier Oregonian article [oregonlive.com] makes a case that the law creating the tax break was vague and that Comcast met the letter of it. It said that, prior to a ruling by the public utilities commission, staff there said that Comcast had met the requirements.

  • (Score: 2) by Gravis on Sunday May 29 2016, @01:32AM

    by Gravis (4596) on Sunday May 29 2016, @01:32AM (#352104)

    the state already has legal representatives working for them full time, so it won't cost the state any additional money. if comcast raises their rates then perhaps you shouldn't pay for their service.