Manassas council agrees to advertise FY2026 rates for computer and data-center taxes; utility increase deferred for more analysis

The Manassas City Council directed staff to advertise maximum FY2026 tax rates of $2.15 for computer personal property and $3.60 for a separate data-center tax, and asked staff to return with more analysis on thresholds, commercial-industrial (C&I) tax eligibility and utility-rate impacts.

At a budget work session, a staff presenter said they needed “head nods” on the numbers so the city can place the legal advertisement for public hearings. Councilmembers agreed to advertise the two maximum rates while reserving the right to reduce them between advertisement and final adoption. Council also asked staff to prepare additional detail on possible thresholds to protect small businesses and on a C&I tax option that could be used to fund new roadway and related capacity projects.

Why it matters: The advertised rates set the ceiling that can be adopted at a later public hearing; advertising does not commit the council to a final rate. The data-center tax discussion follows changes in state policy that permit a separate, higher rate for data centers than for ordinary personal property, which some neighboring jurisdictions have already implemented. The utility-rate discussion, by contrast, remains unresolved and will return to the council with utility staff for a more detailed financial and capital-expenditure briefing.

Council direction and choices

Councilmembers coalesced behind advertising the computer personal-property rate at $2.15 and a separate data-center rate at $3.60. Several councilmembers said they preferred…