Data Centers Could Benefit Local Economies, Advance Broadband Access

MACo Executive Director Michael Sanderson testified February 12, 2020 before the Senate Budget & Taxation Committee to support SB 397 – Sales and Use Tax and Personal Property Tax – Exemptions – Data Centers. This bill enables tax incentives to increase Maryland’s competitiveness as a host of data centers by authorizing local governments to reduce or eliminate assessments for their personal property, and providing a sales and use tax exemption for the sale of specified equipment for use at these facilities.

From the MACo Testimony:

MACo generally supports legislation that provides local authority to enact tax incentives for economic development and tax relief purposes, and welcomes the opportunity to work with state policymakers to develop flexible and optional tools to create broad or targeted tax incentives. Counties prefer the approach offered by SB 397 as it provides local autonomy to determine the best way to provide these incentives, rather than those mandating reductions in local revenue sources.

The technology sector is driving tremendous demands for more computing and storage capacity. Data centers – the facilities that house the computers and equipment that power the information needs of the modern economy – are in high demand. 

. . . Furthermore, the clustering of data centers, related businesses, and skilled workers may lead to additional infrastructure investments, including the expansion of high-speed internet service to underserved areas of the state.

Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.

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