Chesterfield proposes using data center revenue to lower car taxes
Chesterfield County's Board of Supervisors is set to vote on a proposal to use tax revenue from data centers to reduce car tax rates for residents. This decision follows the county's stance against permitting any new data center development, and a public hearing addressing community concerns about these facilities.
The Chesterfield Board of Supervisors is scheduled to vote Wednesday on a proposal to reallocate tax revenue generated by data centers to lower the county's car tax rate. The county aims to provide residents with a direct financial benefit, potentially reducing the current car tax rate from $3.25 to as low as $1.79 per $100 of assessed value, following the full build-out of Google's three planned hyperscale data center campuses.
This vote comes amidst a public hearing on data center concerns and an existing county policy to not permit any new data center development. While Chesterfield currently maintains a business-attractive tax rate of 24 cents per $100 for data centers, neighboring Henrico County recently increased its rate to $2.60 per $100 in an effort to curb development, with the additional funds directed towards affordable housing.
Public opinion has reportedly shifted against data center development due to associated environmental costs. If approved, the ordinance to lower car taxes would take effect on January 1, 2027, applying to all vehicles.