Relating to an exemption from ad valorem taxation of the total appraised value of real property used as a data center and the tangible personal property used by the data center to meet the data center's demand for energy.
Impact
If enacted, SB2222 will amend the Texas Tax Code, adding a new section for data centers that will fundamentally alter how these facilities are taxed. The measure aims to encourage investment in the state's infrastructure and enhance Texas's position as a leader in technology and data services. While the bill's financial incentives are designed to help capitalize on the growing demand for data processing and storage, the long-term effects on public revenues will need to be carefully monitored to ensure that the economic benefits outweigh any potential loss in tax income.
Summary
Senate Bill 2222 is a legislative proposal concerning ad valorem taxation, specifically aimed at providing tax exemptions for data centers. The bill stipulates that a 'qualified data center', which is defined as a facility of at least 100,000 square feet that uses its own energy systems and has been connected to the ERCOT power grid, is eligible for an exemption from property taxes. The objective of the bill is to attract and incentivize data-rich businesses to establish operational centers in Texas, thereby promoting economic growth and job creation within the state.
Contention
While the bill has gained support among technology advocates and business interests, it also faces opposition. Critics are concerned about potential tax revenue losses and the implications of prioritizing one sector over others. The requirement for voter approval of a constitutional amendment to effectuate the tax exemptions further adds a layer of complexity, as it will necessitate public backing for the proposal to move forward. This dichotomy of support and resistance underscores a broader debate regarding state resources allocation and the best strategies for fostering economic development in Texas.
Enabling for
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation the total appraised value of real property used as a data center and the tangible personal property used by the data center to meet the data center's demand for energy.
Identical
Relating to an exemption from ad valorem taxation of the total appraised value of real property used as a data center and the tangible personal property used by the data center to meet the data center's demand for energy.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to an exemption from ad valorem taxation of a percentage of the appraised value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.