Democrats who lead the House and Senate are at an impasse about whether data centers need a tax exemption.
Data centers currently enjoy more than a billion dollars of tax exemptions, a longstanding sweetheart deal begun by former Governor Tim Kaine almost 20 years ago. Now, Senate Finance Committee Chairwoman Louise Lucas wants to get rid of that tax exemption and use the money to fund raises for teachers as well as child care programs and a tax rebate.
"I'm not sure what the mechanism is going to be as long as we are able to get that money from the data centers," Lucas says. "And I've had several conversations with them over the last few days, and we've been making a lot of progress in terms of how we get there."
The budget presented by House Appropriations Chairman Luke Torian initially kept that data center tax exemption in place, although now he says the data centers should suggest how much money they feel comfortable paying.
"The question is about paying their fair share in the revenue. How they get there, that industry will work it out themselves," Torian says. "That's the answer we want to give you."
Democrats have a trifecta, holding the governor's office, the House and the Senate. But they're poised to end the session this weekend without striking a budget deal. The plan is that they would return sometime before the new fiscal year starts in July.
