Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Council debates raising data‑center/computer tax to $3.60; no vote taken
Summary
Councilmembers discussed raising the personal‑property rate for computers and data centers from $2.15 to the $3.60 cap, citing neighboring jurisdictions' rates and potential revenue. Staff cautioned about timing, revenue estimates and legal constraints linking the data‑center levy to the personal‑property rate; no formal vote was recorded.
City Council discussed a proposed increase to the computers and data‑center personal‑property rate during its budget work session as members prepared for the city’s advertised tax‑rate meeting later in the week.
A councilmember said she would move to raise the computers and data‑center rate from the current $2.15 to $3.60 (the maximum noted in the presentation), citing that several neighboring localities have similar rates. Staff and the Commissioner of Revenue presented comparison tables showing most nearby jurisdictions with comparable or higher rates, and noted that reporting from data centers will not be complete until forms are due April 15.
Why it matters: changing the computers/data‑center rate would affect a revenue stream tied to personal property and could shift the tax mix; it also bears on economic‑development discussions about whether higher rates deter data‑center investment.
Councilmembers weighed revenue opportunity against economic‑development tradeoffs. One councilmember noted that even after a $3.60 increase Manassas would still be lower than Prince William County in total property rate in many places, while another warned that the city lacks firm estimates until data‑center reports are received. Staff emphasized a legal constraint raised during the meeting: the data‑center/computer rate cannot exceed the general personal‑property tax rate; a staff member told the council, "You cannot have the data centers higher than your personal property tax." That rule will affect how council can structure rates if it makes changes to either tax.
Council did not take a formal, recorded vote on a rate change during the session. Staff said they could provide additional figures and options ahead of the scheduled advertised‑rate meeting and reminded council that federal and state grant timing can also affect the FY26 budget.
Ending: no final decision was recorded; staff will return with updated revenue estimates and comparative tables in advance of the Wednesday advertised tax‑rate discussion.
