Madison County Denies Amazon’s Valuation Appeal for Canton Data Centers, Preserving Millions in Tax Revenue

The Madison County Board of Supervisors recently denied an appeal from Amazon regarding the valuation of its data center properties in Canton, Mississippi. The board voted on August 17 to uphold the county tax assessor's valuation, a decision that maintains nearly $6 million in anticipated tax revenue for Madison County this fiscal year.

Amazon had sought a significantly lower valuation for five of its data center buildings, proposing an alternative of approximately $69 million per facility, compared to the tax assessor Norman Cannady's estimate of about $292 million per building. This difference of nearly $223 million per facility would have substantially reduced the county's tax collection. Amazon representatives, including James Polianski, argued that their proposed valuation better reflected the market value, based on a replacement cost approach.

Tax Assessor Norman Cannady defended his office's $292 million estimate, citing the highly specialized nature of the buildings and their internal systems. He also noted that Amazon declined to provide actual construction cost information, which he stated would be the best way to determine replacement costs. Amazon cited proprietary and competitive concerns for withholding this data.

The county anticipates a significant financial boost from Amazon's data centers, with tax revenues projected to reach $16.5 million by 2029 and $29 million by 2031 under existing fee-in-lieu-of-taxes (FILOT) agreements. While the board has formally adopted the assessor's valuation, Amazon retains the right to challenge the decision through litigation, according to Cannady. The company could also continue to pursue lower valuations in future years as more data center facilities become operational.