CA, WA, and MO Sales Tax Exemptions for Data Center IT equipment used to lure customers

Winning a data center deal is many times a matter of a few percentage points difference between sites.  Sales tax exemptions is one area that can help one site win vs. another.  A few examples of state sales tax exemptions for data centers are:

Advanced Data Centers in Sacramento, CA on a McClellan AFB has a sales tax exemption under LAMBRA.

Being located on a former Air Force Base, LAMBRA, an acronym for "Local Agency Military Base Recovery Area", allows our customers to claim a credit equal to the sales or use tax paid or incurred to purchase up to $20 million of qualified property. Qualified property includes high technology equipment, such as computers and electronic processing equipment.

Columbia, Missouri is evaluating an exemption for data centers.

Data centers could get tax exemption

Columbia site would benefit.


Tuesday, February 9, 2010

JEFFERSON CITY — Columbia would have a better chance of attracting a data center to Ewing Industrial Park if Missouri offered a sales and use tax exemption to those types of businesses, a Senate committee was told yesterday.

Jim Grice of Kansas City-based ARG Investments LLC told the Senate Ways and Means Committee that a data storage company is considering locating in Columbia while also weighing possibilities in Denver and Chicago. Grice said a sales tax exemption might provide sufficient incentive to the business to make Columbia the successful bidder.

Source: Regional Economic Development, Inc.

Center of Attention
A bill making its way through the Missouri General Assembly would grant a state and local sales and use tax exemption for all machinery equipment, computers and utilities used in new data storage centers and "server farm" facilities. Local economic development officials and developers hope to secure such a facility for Columbia's Ewing Industrial Park.

and Washington has a 15 month sales tax exemption proposed legislation change.

Washington State proposes legislation to restart data center construction, 15 month sales tax exemption

In Olympia, Washington there are two bills introduced with bipartisan support to allow a 15 month sales tax exemption on the purchase and installation of computers for new data centers.

Legislation to boost rural counties

DateWednesday, January 27, 2010 at 5:23PM | AuthorWNJ-Editor

Today is a good day. The bills that we support -- SB 6789 and HB 3147 -- were introduced in Olympia with wide bipartisan support. The 13 sponsors of the bills are from all over the state, from Seattle and Spokane to Walla Walla and Wenatchee. And the state Department of Revenue requested the bills.

The bills allow a 15-month sales-tax exemption on the purchase and installation of computers and energy for new data centers in rural counties. As the bills state, they provide a short-term economic stimulus that will sustain long-term jobs. In other words, the exemption will be temporary, but the jobs and tax revenue from the centers will boost rural counties for years and years to come.