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August 30, 2016

Facebook data center race raises tax questions

  • Supporters see an opportunity to attract a hot company that would bring tax revenue despite the incentives and could attract other high-tech companies.
  • By LINDSAY WHITEHURST and MORGAN LEE
    Associated Press

    SALT LAKE CITY — The race between a small town on the Rio Grande in New Mexico and a Salt Lake City suburb to entice a new Facebook data center with millions of dollars in tax breaks and subsidies is raising questions about public investments in a booming cloud-computing economy that typically brings few local jobs.

    In West Jordan, Utah, an initial plan to offer some $240 million in tax breaks over two decades fell apart after several local leaders said the lure was too rich. Negotiations have since restarted.


     
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