On February 12, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in opposition to HB 560 – Sales and Use Tax and Property Tax – Exemptions for Data Centers – Repeal.

This bill repeals counties’ authority to exempt specified data center equipment from the local personal property tax. The bill also repeals the State sales and use tax exemption for qualified data center personal property.

Currently, counties have the flexibility to decide whether to exempt certain data center equipment from the local personal property tax. By repealing both local and state tax exemptions for qualified data center equipment, the bill strips counties of an important policy tool for balancing economic development opportunities with infrastructure demands and long-term fiscal impacts. Counties must retain flexibility to evaluate major projects in light of local costs, local benefits, and community priorities.

From MACo Testimony: 

Counties need flexibility to make local tax decisions based on local conditions. Data center projects can carry real local costs tied to roads, public safety, infrastructure capacity, and long-term service demands. Counties need the ability to decide whether a tax incentive makes sense locally and, if so, on what terms.

More on MACo’s Advocacy: 

• Follow MACo’s advocacy efforts during the 2026 legislative session on MACo’s Legislative Tracking Database
• Learn more about MACo’s 2026 Legislative Initiatives
• Read more General Assembly News on MACo’s Conduit Street blog