Oregon tax authorities are backing away from a ruling that created a rift between the state and Facebook. The Department of Revenue has said it will change its rules so data centres like Facebook's are assessed by local tax authorities, not by the state.

Facebook built a data centre 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.  The company says the state's reversal is an "important step," but Facebook needs more certainty and will continue pushing the Legislature for a change this year.  Gov. John Kitzhaber says tax laws should be updated to reflect modern technology but there won't be time for such a complex issue until 2013.

Source: KTVZ

Here for full article