Wisconsin Senate approves tax rule exemption for data center – Washington Examiner
The Wisconsin Senate has approved a bill allowing a planned data center in Port Washington to bypass certain tax increment financing (TIF) rules. This will enable the data center to capture increased property tax revenues generated from its advancement for future improvements instead of contributing these revenues to the local tax base. The bill specifically creates an exemption to a 12% cap on how much property in a municipality can be involved in a TIF. While proponents, including Senator jodi Habush-Sinykin, argue that the project will create critically important job opportunities and boost the local tax base, critics raise concerns about the viability of such tax breaks given that many states have seen substantial tax losses due to data centers. There are also worries about the potential rise in consumer energy costs associated with these facilities. The bill passed with a vote of 28-3 in the Senate following a 91-6 vote in the Assembly.
Wisconsin Senate approves tax rule exemption for data center
(The Center Square) – The Wisconsin Senate approved an exception to the state’s tax incremental financing rules for a planned data center in Port Washington.
The data center is expected to be constructed and could open before the end of the year.
The bill allows the data center to be part of a TIF, meaning that the increased property taxes from the property being developed will be captured and allowed to be used for future improvements on the property instead of going to the local tax base.
The bill creates an exemption to a statewide 12% limit on the amount of property in a municipality that can be part of a TIF.
The 12% rule is in place related to local property taxes because the exemptions mean that businesses in a TIF aren’t paying into the local property tax base yet are using local resources. Therefore, companies are able to retain the funds to spend on future improvements of their facilities.
Tax breaks for data centers nationwide are being questioned due to the lack of long-term jobs at the sites, the energy needs and the potential increase in consumer energy bills that accompany those data centers.
Sen. Jodi Habush-Sinykin, D-Whitefish Bay, claimed the project would lead to “hundreds or even thousands of good paying” while claiming the Vantage Data Centers project would “meaningfully expand the local tax base of Port Washington.”
The expansion of tax base, however, has not proven true as at least 10 states are currently losing $100 million or more in taxes from data centers, according to an April report from Good Jobs First.
WISCONSIN SUPREME COURT UNANIMOUSLY RULES AGAINST GOP LAW THAT WEAKENED STATE AG POWERS
Assembly Bill 140 passed the Senate 28-3 after passing the Assembly 91-6.
The average American’s energy bill could increase from 25% to 70% in the next 10 years without intervention from policymakers, according to Washington, D.C.-based think tank the Jack Kemp Foundation.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
