Critics fear Michigan is promising the moon to land cloud data storage firms

Bridge Michigan

Less than a decade later, Loudoun County, Virginia has become the data center capital of the world, said Comstock, who is now an adviser for the NetChoice lobbying group. Property taxes, income taxes and other revenues related to the centers have been a “cash cow” for her region, she told legislators. 

NetChoice Testimony in support of Michigan HB 5127 and HB 5128, regarding sales tax on data center equipment

NetChoice Testimony in support of Michigan HB 5127 and HB 5128, regarding sales tax on data center equipment

Lawmakers push tax breaks for data centers, critics worry about school funds

Michigan Advance

Steve DelBianco, CEO of NetChoice, a Virginia-based trade association of online and tech businesses, testified Thursday at the committee meeting on behalf of the data center market. He says that large data centers won’t even consider opening up shop in Michigan until there is data center-friendly legislation.

“We encourage Michigan, in this respect, to accommodate this view toward data centers that will either be here or not be here. And that hinges on whether or not the state recognizes the production equipment of a data center is production equipment that should qualify for sales tax exemptions,” DelBianco testified to the committee. “Over the last five years, not a single large enterprise data center is located in a state that has imposed its full sales tax on the data center servers.”

NetChoice support for Michigan HB 5127 and HB 5128, regarding sales tax on data center equipment

NetChoice support for Michigan HB 5127 and HB 5128, regarding sales tax on data center equipment

NetChoice testimony in Pennsylvania Senate on taxation of data centers

NetChoice testimony in Pennsylvania Senate on taxation of data centers

NetChoice Testimony to Idaho Joint Revenue & Taxation Committees, Regarding Data Center Sales/Use Tax Exemption

Link to presentation

NetChoice Presentation to Idaho Joint Revenue & Taxation Committees, Regarding Data Center Sales/Use Tax Exemption

Link to testimony video