Committee advances amendment allowing municipalities to create a separate property class for data centers

Sen. Dolezal told the Senate Rules Standing Committee on Feb. 25 that the substitute for SR668 narrows an earlier draft by removing manufacturing and limiting a new ad valorem property class to data centers.

“In the substitute...that has been struck in the substitute to now read, primarily for housing electronic equipment that is primarily used to process, store, or transmit digital information and data,” Sen. Dolezal said, describing the change that turns the proposal into a vehicle for municipalities to create a separate property class for data centers.

Dolezal said the proposal is optional for local governments and does not itself prescribe tax increases for data centers. He described the measure as a constitutional amendment that would permit municipalities to separate data centers from other property classes and, if a jurisdiction chose, adjust millage rates to fund a county’s budget.

Sen. Williams raised competitiveness concerns: “But I know if we tax them at a higher rate... they probably won't come to Georgia,” and asked whether separating data centers might encourage localities to lower rates to attract investment. The sponsor responded that current tools (abatements and other incentives) remain available and the bill merely provides an additional option.

Committee members discussed uniformity and enabling legislation; the sponsor noted the constitutional amendment and that enabling legislation would follow. Sen. Steele moved “do pass” for the committee substitute (LC590390S); Sen. Anderson seconded. The chair recorded the committee action and moved the substitute forward.

The record notes the committee previously advanced the measure out of finance and that the substitute is intended to address earlier expressed concerns by removing manufacturing from the proposed separate class.