Virginia House, Senate to meet Monday as budget deadline inches closer
Virginia lawmakers are meeting in Richmond to finalize the state budget by June 30, with a key point of contention being tax exemptions for data centers. The Senate proposed a tiered tax based on generator use, while the House removed previous environmental stipulations but preserved the tax exemption. Governor Spanberger supports the House bill as budget negotiations continue.
Virginia lawmakers are slated to reconvene in Richmond on Monday, June 22, to address the unresolved state budget, which faces a June 30 deadline. A primary point of contention has been the future of sales and use tax exemptions for data centers.
The Senate, led by Sen. Louise Lucas (D-Portsmouth), initially proposed eliminating the exemption and then released an updated budget that replaced the full revocation with a tiered tax system for data centers, linked to their generator use. Lucas has actively campaigned statewide, advocating for increased costs on data centers to generate an estimated $1.8 billion for the state, arguing for better regulation of their community impact.
In contrast, the House released a revised budget proposal that maintained the tax exemption for data centers, while also stripping previously recommended environmental stipulations. Governor Abigail Spanberger has voiced support for the House bill and criticized the ongoing budget delay. Both chambers' proposals include significant funding for healthcare, education, and a planned retail cannabis marketplace, alongside pay raises for teachers.