Senate advances MITA bill after heated debate over utility-tax exemption for large data center

The Utah Senate on Feb. 7 advanced first substitute Senate Bill 45, a package of amendments to the Military Installation Development Authority (MITA), to the third-reading calendar after extended debate over tax exemptions for development on or adjacent to military property.

Sponsor Senator Jay Stevenson, who described the measure as containing five components, said the bill clarifies development definitions, authorizes certain privilege (franchise) tax provisions, and implements an exemption that would honor earlier commitments tied to bringing a large federal data center to Utah. Stevenson said the legislation "ties Wasatch Integrated Waste" energy facilities to base development, clarifies who may be taxed and when, and "brings the state of Utah to our commitment." (Senator Jay Stevenson, sponsor.)

Opponents pressed the sponsor repeatedly on the scope and fiscal effect of a provision that effectively waives a local utility franchise or energy tax for the project. Senator DeBackus asked whether the proposal amounted to a "subsidy to the federal government," and noted concerns that the project "creates very few jobs" while potentially forgoing local tax…