Lawmakers remove property tax break from data center bills

LANSING, Mich. (AP) – Michigan lawmakers plan to scale back tax break legislation designed to land a mega-Internet data center in the state.

The House’s Tax Policy Committee chairman said Thursday the chamber will not pass a Senate-approved bill that would fully exempt data centers from Michigan’s personal property tax owed on business equipment. Rep. Jeff Farrington says there was too much contention over the measure between local governments and existing data centers.

Legislators and Gov. Rick Snyder continue to negotiate two other bills that Las Vegas-based data center developer Switch wants before building a mega-campus near Grand Rapids. The legislation would completely exempt Internet data centers and their co-located clients from sales and use taxes.

Farrington says he expects the Legislature to approve the tax breaks next week before adjourning for the year.

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