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Trade groups and local governments urge committee to reject repeal of data-center refurbishment exemption
Summary
At a House Finance hearing, testimony opposed SB 62-31’s repeal of the data-center refurbishment sales-tax exemption, with labor, ports and industry witnesses warning of lost construction and ongoing jobs, reduced local tax bases, and competitive harm to Washington; staff presented revised timelines and DOR fiscal estimates.
House Finance heard conflicting testimony on SB 62-31, which would narrow the statewide sales-tax exemption that has supported data-center construction and ongoing replacement activity.
John Brzezinski, staff to the committee, described the bill’s technical changes: it would end issuance of new exemption certificates for certain refurbishment-based projects on set future dates, remove replacement server equipment from the definition of qualifying equipment, and adjust expiration timelines for existing certificates; the Department of Revenue provided draft fiscal estimates attached to the engrossed bill.
Sponsor Sen. Noelle Frame framed the measure as a budgetary choice to end a refurbishment preference she…
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