Prince Edward County in Virginia has established a new tax for data centers. The reasoning behind this is to make the tax more competitive with the surrounding counties in Virginia. Earlier this week, the Board of Supervisors voted unanimously to create a different tax category for computers and any other equipment operated in data centers. The county has set a rate of $1 for every $100 of assessed value. Before the vote, the tax rate for this type of equipment was set at $4.50 per $100.
During the meeting, the County Administrator, Doug Stanley, said that the equipment's taxes are considered a separate classification. Stanley also noted that the tax includes depreciation rates that make data center operators regularly replace their old equipment. He finally added that the new tax would help make the community more attractive for data center firms. The new tax will come into effect by 2022.
