Ohio bill would end some tax exemptions for data centers

Ohio state lawmakers are reportedly drafting new legislation aimed at ending significant tax incentives for data centers. The move comes amid widespread public backlash against data center development in the state, with supporters of the bill asserting that wealthy tech companies do not require these incentives.

Representative Triston Radar has introduced legislation to prohibit data center companies from receiving new sales tax exemptions, building on Governor Mike DeWine's earlier pause of such exemptions. Radar estimates that the sales tax exemption alone is worth at least $1.5 billion to the state in 2025. Representative David Thomas, who is drafting language to eliminate property tax abatements, noted that these abatements are determined locally, making it difficult to assess their full cost to the state. He believes eliminating property tax abatements would be a more effective way to regulate the industry and reduce the financial burden on homeowners.

Representative Daniel Troy supports targeting property tax abatements, arguing that local communities are authorized to grant these only by the Legislature. He, along with Thomas, has led efforts to reform property taxes, believing that requiring data centers to pay their fair share would significantly help reduce the burden on residential homeowners. The lawmakers acknowledge that various data center reform proposals could ultimately be combined into one legislative effort.