The new fiscal year starts next month, but Virginia still has no budget. And leaders in the General Assembly are still divided over what to do about a tax break for data centers.
Virginia promised a huge tax break to data centers until 2035, although now Senate Democrats want to eliminate the sales and use tax exemption to pay for raises for teachers and child care programs. Speaking to a group of business leaders in Northern Virginia this week, Speaker of the House Don Scott says eliminating the tax exemption would be going back on a promise.
"We need to make sure that we do not do anything to kill the golden goose. I really don't care about a specific industry," Scott says. "I care about keeping our word to businesses that we attract, and that we want to retain in the Commonwealth of Virginia. That's what I care about."
He says the tax exemption is a way to make sure data centers use renewable energy and build new infrastructure to drive down utility costs. Fairfax County Board of Supervisors Chairman Jeff McKay says he agrees with Speaker Scott.
"And I think if we can get a trade off, and we can get much, much more stringent environmental standards, as the speaker said, supporting renewable energy anytime we can to power these," McKay says.
The House and Senate will be meeting later this month to send some kind of compromise to the governor before the end of the month. The new fiscal year starts at the beginning of next month.
