Proposed Ordinance Would Allocate All Local Data Center Revenue to Cutting 'Car Tax' Rate

Chesterfield County is poised to vote on a groundbreaking ordinance that proposes to dedicate all real estate and business tangible personal property tax revenue generated by data centers to reducing the personal property tax rate on vehicles. The Chesterfield County Board of Supervisors is scheduled to hold a public hearing and vote on the measure at its August 26 meeting, with implementation set for January 1, 2027.

The initiative, championed by Deputy County Administrator for Finance and Administration Matt Harris, seeks to provide substantial tax relief to residents by diversifying the county's tax base. Google's approved data center campuses in Chesterfield are projected to significantly contribute to this revenue stream. At full build-out, Google's projects are expected to generate over $47 million annually in local revenue, potentially cutting the vehicle tax rate by $1.46 and resulting in one of the lowest "car tax" rates among large Virginia localities. Chirisa also has two data center buildings under construction that will contribute to this revenue.

Currently, three data center buildings are operational in Meadowville Technology Park, with an additional five under construction by Google and Chirisa in eastern Chesterfield. Google also has approved zoning for two more campuses at Upper Magnolia Green and Watkins Centre South. The county aims to use these tax dollars directly for resident relief rather than expanding government programs, ensuring public services like schools and public safety remain unaffected.