House Finance Committee reports bill to repeal data center sales-tax exemption

The House Finance Committee on a voting motion reported House Bill 21 98 (printer's number 2889), which would repeal the sales-and-use tax exemption for computer data center equipment, out of committee unanimously.

Committee members framed the vote around projected fiscal impacts. Chairman Samuelson cited official estimates showing roughly $41,000,000 last year, $114,000,000 this year, $188,000,000 next year and a possible five-year projection reaching $517,000,000, and described the repeal as a way to address structural budgetary shortfalls while providing tax relief to “everyday Pennsylvanians.”

Representative Coutts urged colleagues to support the measure, saying she was "proud to offer this amendment" and arguing the state should be "taxing fairly" so that companies building data centers "pay the sales and use tax owed on their operations." Representative Gaydos added that if consumers do not receive a sales-tax break for home computer equipment, "we should not be giving this to big corporations." Chair Griner said he would vote affirmatively, noting the policy environment has changed since the exemption was adopted and pointing to the size of the projected revenue as a fairness issue.

With no further discussion, Chairman Samuelson announced that House Bill 21 98 was "reported from the Finance Committee unanimously." The committee record also noted all 26 members were accounted for during the roll call.

The committee's action sends the bill to the next step in the House process.