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Pima County Board directs lobbyists to probe data center sales-tax exemptions amid Project Blue debate
Summary
The Board voted 4-1 to amend its 2026 legislative agenda to direct county lobbyists to investigate eliminating state and local sales-tax exemptions for data‑center equipment after members and the county—s lobbyist said the exemption likely no longer serves its original purpose.
The Pima County Board of Supervisors voted 4-1 on Aug. 5 to amend its 2026 legislative agenda to direct the county—s contracted lobbyists to investigate eliminating state and local sales‑tax exemptions for computer data‑center equipment.
The motion, introduced and explained by Supervisor Steve Allen, directs lobbyists to "investigate the elimination of data centers state and local sales tax exemptions" and passed with Supervisor Christie opposed. Allen said the item was meant to make the county—s preference explicit as Project Blue, a proposed large data‑center development, progresses through project review.
County lobbyist Michael Rossi told the board the exemption was created in 2013 to attract data centers to Arizona and is a state sales‑tax exemption that reduces the shared sales‑tax base counties and cities receive. Rossi said Arizona was experiencing rapid data‑center…
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