Data center companies in Texas receive state sales and use tax exemptions on their purchases. These exemptions apply to computers, racks, electrical equipment, and electricity. This policy was implemented to attract the data center industry to Texas.
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Temple residents hold ‘No Data Center in Temple’ Town HallIndiziert:
Hundreds of people have gathered to learn more about what they can do to stop data centers from coming to Temple, TX.
Other financial implications of this industry, they get tax breaks for coming to Texas. They get a state sales and use tax break. They don't pay sales tax on the computers they buy, on the racks that they buy, on the electrical equipment that they buy. And as long as they're buying electricity, they're not paying sales tax on that either. That's already costing us a billion dollars a year. In the next two years, it's going to cost $3 billion. So I moved to Austin so I could work around the legislature and that's going to be our main goal for the data center space is to eliminate that state sales and use tax exemption.
It was put in place to attract the industry. We got enough of that industry in Texas at this point. So we need to eliminate that state sales
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