State tax department has no records of sales tax exemptions for Somerset data center
New York state officials admit they lack data on the use and impact of a 26-year-old sales tax exemption for data centers, including who is using it and how much revenue is lost. This comes amid growing controversy, with the Niagara County Legislature urging a state audit of the exemption, which they claim is being misused by companies like TeraWulf Inc. at the Lake Mariner data center in Somerset.
Amid growing controversy surrounding data centers, New York state officials have acknowledged a significant gap in their knowledge regarding a 26-year-old sales tax exemption. The state tax department reportedly has no records detailing how often this narrow exemption is utilized by data center developers, who the beneficiaries are, or the total tax revenue the state foregoes as a result. This lack of transparency means the state may not know how much tax revenue it is losing due to these breaks.
This situation has drawn criticism, particularly from the Niagara County Legislature, which is actively calling for a state audit of the controversial sales tax exemption. Lawmakers assert that the exemption is being misused by companies. TeraWulf Inc., which operates the Lake Mariner data center in Somerset, is specifically mentioned in the context of claiming these tax breaks, although the company maintains it is eligible and acting within its rights.