ABC24 This Week: Data Center Tax Revenue
An ABC24 panel discussed whether Memphis and Shelby County should rely on data center-related tax revenue, including revenue associated with xAI. The panel cautioned that taxes on depreciating equipment and chips may decline over time and recommended using the money for one-time infrastructure and deferred maintenance rather than recurring expenses.
An ABC24 Memphis panel examined the sustainability of data center-related tax revenue in Memphis and Shelby County. Panelist Scott McCormick questioned whether local budgets should depend on the current tax windfall associated with xAI and other data center activity.
The discussion noted that taxes on business equipment, including data center chips and other personal property, can decline as those assets depreciate. The panel cited Shelby County property assessor concerns about stagnant commercial tax growth and warned that local governments should treat the revenue as temporary, directing it toward infrastructure and deferred maintenance rather than ongoing operating costs.