Legality of banning tax breaks to data centers to be explored
The Chautauqua County Legislature tabled a proposal that would have barred the county Industrial Development Agency from granting tax breaks to future data center projects. Lawmakers sent the measure to committee after the county attorney questioned whether the county had the legal authority to impose the restriction, while residents in Portland continue to oppose potential data center development.
The Chautauqua County Legislature in Mayville unanimously sent to committee a Democratic caucus proposal that would prohibit the county Industrial Development Agency from granting property, mortgage-recording and sales-tax exemptions to future data center projects. County Attorney Nathan Harp and IDA legal counsel Milian Tyler raised concerns that the county lacks authority to mandate such a policy.
The proposal was considered amid a New York state moratorium on new data centers, imposed by Gov. Kathy Hochul through July 2027. Portland is the only town in the county to have discussed a possible data center, though officials said no formal project has been proposed. Residents, including Portland resident and county legislative candidate Carla Rodriguez, have expressed opposition, citing electricity consumption, limited permanent jobs and potential costs to taxpayers.