Fed up with data centers? Texas lawmakers might make them pay
The Texas Legislature could eliminate a state sales tax exemption for data centers when lawmakers meet in January. Texas Sen. Joan Huffman, a Houston Republican who currently chairs the Senate Finance Committee, filed a bill on Monday that would repeal sales and use tax exemptions given to data centers, according to a news release shared on social media. Monday is the first day of bill filing in Texas ahead of the January legislative session, and the text of Huffman’s proposed legislation was not immediately available online. Thousands of bills are filed each session, but only a fraction become law. “Texas should welcome investment,” Huffman said in a written statement. “It should not write a blank check.” The exemptions in question have come under scrutiny as the booming data center industry faces backlash in Texas, particularly in rural areas where many residents oppose the development of new facilities. Texas offers tax exemptions for data centers following the passage of 2013 and 2015 laws, but the missed revenue has ballooned since the bills took effect. In the 2028-2029 biennium, Texas is expected to lose out on more than $3 billion in revenue because of the tax breaks, according to a Senate interim
