Lawmakers expected to tackle property tax, data center bills

North Carolina lawmakers have returned to the state capital in Raleigh for a legislative session focused on property tax reform and tax breaks for data centers. Governor Josh Stein is pushing for legislators to modify or repeal existing sales tax exemptions for data centers, citing the sector's explosive growth, high energy consumption, and the burden on ratepayers. These exemptions, initially enacted in 2006 and expanded in 2015, are estimated by the N.C. Department of Commerce to cost the state approximately $50 million annually, with projections of up to $450 million in future revenue if fully repealed. The governor emphasized the need to be clear-eyed about the costs of data centers to both ratepayers, through higher power bills, and taxpayers, due to lost state revenue. This aligns with broader concerns, including efforts by President Donald Trump to protect consumers from increased energy rates driven by data centers. Meanwhile, general opposition to data center development is on the rise across North Carolina, leading a number of municipalities to enact one-year moratoriums to allow time for further research and the development of new regulations. Lawmakers are also debating a proposed constitutional amendment to limit property tax increases, with Republicans arguing it's necessary to control local government spending and Democrats contending it would hamstring funding for essential public services.