Spanberger backs House budget as shutdown deadline looms over data center tax fight
Virginia lawmakers are facing a looming state budget deadline and potential government shutdown due to a disagreement over the sales and use tax exemption for data centers. The House and Senate have different proposals, with the Senate Finance Chair insisting the exemption must end. Governor Glenn Youngkin supports the House's budget version.
The Virginia State Legislature is facing a critical deadline for its state budget, with a potential government shutdown looming due to significant disagreements, particularly concerning the sales and use tax exemption currently enjoyed by data center operators. Legislators are scheduled to meet to discuss their proposed budgets, with a possible House vote upcoming.
The primary point of contention lies between the House and Senate proposals. The Senate Finance Chair remains steadfast in demanding an end to the billion-dollar sales and use tax exemption for data centers. Governor Glenn Youngkin has publicly stated his support for the House of Delegates' version of the budget, indicating a lack of substantial discussion with Senator Lucas, who had previously tweeted a graduated tax proposal for data centers but has yet to present it to the Governor's team.
Senator Lucas has maintained that data center companies should pay their "fair share," drawing comparisons to other states that do not offer similar sales and use tax exemptions. Governor Youngkin expressed continued support for the House's proposed conference report, citing its thoughtful approach to priorities across the state, and noted that the House's budget priorities also have support within the State Senate.
The legislative process is further complicated by the requirement that an agreed-upon budget must be available to legislators 48 hours before a vote. With the House of Delegates reconvening Thursday and the Senate not until next Monday, time is running out to reach a consensus before the July 1st deadline.