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South Hill to end Microsoft incentive grants, move to lower data‑center tax rate
Summary
The South Hill Town Council voted unanimously June 8 to discontinue Economic Incentive Grant Agreements tied to Microsoft and implement a revised data‑center personal property tax approach effective July 1, 2026, in coordination with the county and the local IDA.
The South Hill Town Council voted unanimously on June 8 to discontinue previously negotiated Economic Incentive Grant Agreements related to Microsoft and to implement a revised data‑center personal property tax approach effective July 1, 2026.
Town Manager Keli Reekes told the council the resolution would terminate the Agreements dated Jan. 22, 2021 and Oct. 8, 2021, and replace the prior remittance structure with a reduced tax rate for data‑center personal property for fiscal year 2026–2027. "The resolution discontinues the Economic Incentive Grant Agreements related to Microsoft's data center operations and reflects a revised tax structure agreed to by all parties," Reekes said.
The council recorded a roll‑call vote approving the resolution: Councilors Randy Crocker, Lillie Feggins‑Boone, Jenifer Freeman‑Hite, Ashley Hardee, Gavin Honeycutt (Vice Mayor), Delores Luster, Carl Sasser, Jr., and Michael Smith all voted aye. The resolution states the change is coordinated with Mecklenburg County and the Industrial Development Authority and that any prior appropriations under the agreements will cease consistent with applicable law.
The resolution packet describes the prior agreements as arrangements under which the Town previously agreed to remit amounts equal to tax revenues received from Microsoft to the local IDA for remittance to Microsoft. Council materials say the parties reached a mutual understanding to discontinue that structure in favor of a revised tax rate intended to better support community engagement.
Council did not adopt specific new tax‑rate language on the floor; the resolution affirms intent to implement a reduced data‑center personal property tax rate beginning July 1, 2026, for FY 2026–2027 and directs coordination with the County and IDA for administration. No public comment opposing the change was recorded during the discussion. The resolution passed without dissent.
Next steps listed in meeting materials direct town staff to coordinate implementation details with the County and the IDA and to prepare any ministerial documents required for the tax change to take effect on July 1.
