Data centers in Wisconsin pay no sales tax after a 2023 law was signed. David Crowley said he would ‘absolutely’ repeal that
Wisconsin lawmakers are considering repealing a sales tax exemption for data centers enacted in 2023. Democratic gubernatorial candidate David Crowley said he would sign a repeal, while also supporting stronger environmental standards and greater local control over data center development.
Wisconsin granted data centers a sales tax exemption in the 2023-25 state budget, a measure signed by Democratic Gov. Tony Evers. The Legislative Fiscal Bureau estimates the exemption could cost Wisconsin more than $2 billion in sales tax revenue, largely because of large facilities in Beaver Dam, Port Washington and Mount Pleasant.
Four Republican lawmakers have proposed repealing the exemption, although the Legislature is not currently in session. Democratic gubernatorial candidate David Crowley said he would support repeal, arguing that data centers should help cover increased energy and utility costs and comply with strict environmental standards. Crowley also said communities should be able to reject proposed facilities, while opponents of a broader construction moratorium warned it could harm the economy and trigger litigation.