Lawmakers propose repealing sales tax exemption for data centers

Lawmakers Lindee Brill and Andre Jacque co-sponsored legislation proposing to repeal a sales tax exemption for data centers. This exemption was part of the 2023-25 budget and allows developers to avoid sales and use taxes on property and equipment used for construction or operation. The provision has reportedly saved developers $1.5 billion in the state.

The proposed repeal would eliminate a significant financial incentive for data center construction and operation. The legislation, which was inspired by public opposition to data centers, aims to remove what the co-sponsorship memo calls 'crony capitalism' from the tax code.