Proposed legislation in the Ohio Statehouse is aiming to stop all data centers from receiving tax exemptions across the state. Legislation has been proposed in the Ohio Senate, which seeks to prohibit new data center sales tax exemptions.

Background

State Rep. Tristan Rader (D–Lakewood) said he introduced similar legislation late last month and the push to end data center sales tax has had bipartisan support. Ohio introduced sales tax incentives for data centers back in 2011, but on May 27, Ohio Gov. Mike DeWine implemented a temporary pause, which took effect last week.

Rader stated, ‘This is a step in the right direction, but it is not nearly enough. Governor DeWine never should have reinstated this exemption in the first place after it was eliminated in last year’s budget. Ohioans are tired of a tax system that shifts the burden onto working families while the wealthiest continue to receive special treatment. Our schools, roads, libraries, and public services depend on everyone paying their fair share, and this exemption should be permanently repealed.’

Response from Governor DeWine

DeWine made a note that his decision only suspended the ability of data centers to request tax exemptions and does not ban them in Ohio. ‘Data centers are a critical component to today’s technology-driven economy, which depends on the virtual, large-scale exchange of information. One of the reasons Ohio has been so successful in attracting new businesses and creating new jobs is that we have invested in the data infrastructure needed to support complex technological innovation,’ DeWine said.

The governor said he supports the Ohio General Assembly’s work in studying the issue and bringing forth more information about data centers, amid significant public pushback against them in Ohio.

Original reporting: WLWT Cincinnati — read the source article.