Russell County board sets data-center machinery-and-tools tax at $0.24 per $100 to lure projects

The Russell County Board of Supervisors voted Dec. 8 to set a machinery-and-tools tax rate of $0.24 per $100 of assessed value for data centers, a move county attorneys and economic-development officials said is intended to keep Russell competitive with neighboring localities.

County Attorney Tyler told the board the draft ordinance uses a template rate of "24¢ on the $100 worth of assessed value," noting that several neighboring localities use the same metric. He said the ordinance would take effect Jan. 1, 2026, unless the board decides to amend it after further proceedings.

Board members debated whether matching the regional rate would cost the county revenue and whether a higher rate might be justified. Supervisor concerns centered on balancing competitiveness and revenue: one member cautioned that the county should not "cut off our nose to spite our face," while others said getting a facility in the county would create new revenue even at the lower rate.

Tyler provided comparisons during the discussion: Loudoun County’s general M&T rate for data centers was cited as $4.15 per $100, while several nearby counties use the 24¢ rate. Board members noted the market has shifted over the past four years and that the county can revisit the rate after a public hearing and additional analysis.

The motion to set the rate at $0.24 per $100 was made, seconded and approved by a voice vote. The board was advised that changing the rate later would require a new public hearing.

What happens next: the ordinance language and effective date were approved in principle; the board and staff will follow through on any required notice and public-hearing steps and will monitor revenue performance and regional developments.

Representative quotes from the meeting: "What we have in the template there is 24¢ on the $100 worth of assessed value," County Attorney Tyler said when presenting the draft ordinance.

"A little bit of something is better than nothing," a board member said in support of adopting a competitive rate to attract industry.

The board's vote concluded when the motion carried by voice; the ordinance's effective date was listed as Jan. 1, 2026.