Local Tax Issues

Amazon Set to Receive $1 Billion In Tax Breaks In Oregon

Amazon Set to Receive $1 Billion In Tax Breaks In Oregon

Retail and media giant Amazon is set to receive $1 billion in tax breaks in Oregon, where the company is constructing new data centers. 

Oregon Live first reported details about the deal. The five data centers are set to be built in Port of Morrow, where commissioners this week signed off on a "contentious" tax incentive package totaling approximately $1 billion.

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Credit: David Ryder/Stringer/Getty Images

The port's five-member commission were the last hurdle to Amazon securing the enterprise zone incentives. The commission was unanimous in its approval of the measure. Morrow County is a relatively remote region, about 160 miles upriver from Portland. By approving the tax package, area authorities hope to bring as much as $12 billion in new Amazon spending to their region. 

Amazon has already been a boon for the area, with four of the company's existing data centers -- and several hundred jobs -- already located in Morrow County. 

It is worth noting that the tax breaks were contentious for a reason. There has been an ongoing investigation into how Seattle-based Amazon received its tax incentives, and a probe into potentially corrupt practices by some of the individuals tasked with approving Morrow County tax measures. 

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Credit: Jasmin Merdan/Getty Images

The Associated Press (AP) shared details about a situation involving Windwave Communications, a technology company that provides fiber-optic internet service for Amazon's operations in the area. Windwave, as it turns out, is owned by former Morrow County commissioners. 

The ex-commissioners, Jerry Healy and Marv Padberg, wrote an April 2023 letter to the state ethics commission. Per the AP's report, they acknowledged that their company does have a contract to provide fiber-optic service to one of the new proposed data centers. However, the duo carefully stated they had only a  “potential” conflict of interest when voting on tax incentives for the current four data centers. 

Following Wednesday's approval of the $1 billion tax package, Amazon issued a statement, saying, “We’ve been an active member of eastern Oregon communities since 2011, investing more than $15.6 billion while supporting thousands of local jobs."

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Credit: The Good Brigade/Getty Images

The massive company currently pays about a third of all property tax intake in Morrow County, amounting to an estimated $26 million in 2021.

What do you think about Amazon's tax breaks in Oregon?

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Feature Image Credit: David Ryder/Stringer/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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