LANSING – The Michigan House is “still talking” about legislation that would exempt data centers from sales, use and personal property taxes, but a spokesperson for House Republicans said the chamber is likely to leave the property tax exemption behind.
With only one week of session left in the year, the House has to pass the Senate versions of the legislation (SB 616, SB 617 and SB 618), but the final bill will likely not reach the governor’s desk, said Gideon D’Assandro, spokesperson for House Republicans.
D’Assandro said members are “still talking,” but noted property tax exemptions can be received through local governments, so the Legislature does not have to require the new tax treatment.
The legislation comes as a change for all collocated data centers in the state but was inspired by Switch, a Nevada-based data center that would like to build its east coast center in the state if the new tax policies are implemented.
Roger Martin, spokesperson for the company, said Switch is not making any comments on the legislation until a final package has been passed.
But sources familiar with the situation said the property tax exemptions will not be a deal breaker for the company’s anticipated move to the state.
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