Council raises questions about Amazon fuel cell and business-profit taxation; staff to follow up

After approving grant awards, council members spent substantial time discussing a separate issue: valuation and tax treatment of on-site fuel-cell power at Amazon/AWS facilities in Hilliard and whether the city is calculating business-profit tax revenue correctly.

Council member Les raised the concern after recent Planning & Zoning testimony about a proposed fuel-cell installation at an Amazon site, saying staff responses left council uncertain about how business-profit taxes are being valued for large data centers. “My thinking along the lines of the AEP infrastructure ... we need to really look at how we are collecting business profit taxes on those data centers,” Les said, citing prior experience with large employers receiving refunds on business taxes.

Council members and staff described gaps in the city’s current understanding. City staff (Dan) told council he did not have the details council requested about how the business-profit tax is calculated for these facilities; city attorney Thad advised that the topic requires further legal and financial review and said he would circulate follow-up guidance to council. Members asked whether Amazon/AWS would delay or alter development plans if the fuel cell is not approved; staff said those contract and abatement questions involve ongoing negotiations and department-level review.

Council members noted that fuel cells and other on-site generation change the valuation of infrastructure and have implications for utilities, city permitting, and tax revenue. No ordinance or administrative change was proposed at the meeting; instead, council directed staff and legal to provide more detailed analysis and a written communication to council about valuation, tax collection, and any related abatements or contractual issues.

The council did not take formal action on the fuel-cell matter during the special meeting. Members asked that the city attorney and finance staff deliver a memo or email summarizing the city’s approach to business-profit taxes for large data centers and the effect of on-site generation on abatements and tax assessments.