ND Tax Commissioner says data center companies are saving millions on taxes
North Dakota's Tax Commissioner, Brian Kroshus, reported to state lawmakers that data center companies in the state are saving millions annually on taxes. He estimated that companies are exempted around $65 million in sales and use tax this year. Kroshus also noted that companies without a physical presence in North Dakota or buying equipment out of state are not required to report sales taxes paid.
North Dakota Tax Commissioner Brian Kroshus informed state lawmakers that data center companies are currently saving millions of dollars in taxes within the state. In a presentation to the tax reform and relief advisory committee, Kroshus estimated that companies are being exempted approximately $65 million in sales and use tax this year, primarily for technology equipment and software.
Kroshus highlighted the economic benefits, noting that profitable facilities pay corporate income tax, and employees contribute state income tax, with wages benefiting local economies. However, he also pointed out that this number is expected to grow. His report indicated a loophole where companies without a physical presence in North Dakota or those purchasing equipment out of state are not required to report their sales tax payments to the state.