Data Centers May Flee WA State If New Tax Proposal Passes Legislature

For years, the WA State legislature, despite some of its rediculous and shocking tax proposals and ideas, has steered clear of punishing the tech industry with massive taxes.  But another example of that changing has taken place.  (pictured in our story is the Titan Data Center in Moses Lake)

  State Dems Want to Tax Data Center Equipment Upgrades

According to leading tech data, there are at least 126 data centers in WA State, many of them concentrated in the Wenatchee, Quincy, Moses Lake, Seattle and Tacoma areas.  These centers hold massive amounts of digital information, on highly sophisticated 'blades', or high-tech servers.

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They're not cheap to replace, most data companies routinely upgrade their computers at least every 3-4 years. Now, State Dems want to get rid of a tax exemption that has brought many of them here.

  State House Committee Approves Dropping the Tax Break

 The State House Finance Committee voted to approve Senate Bill 6231, which would restore a 6.5 percent tax on the refurbishment process.   The bill would remove the break for refurbishing or replacing old equipment, but would not affect the purchase of new infrastructure.

Still, it would place a massive new burden on the data centers, according to the Tri-City Area Journal of Business and other sources, State Dems say it would bring in at least $140 million every year. The bill was requested by Gov. Bob Ferguson, WA State is one of the top ten in the US in the number of such centers.

Industry leaders and unions oppose the plan, saying these centers have economically revitalized many communities, including those in Central WA, especially Grant County.

They also say removing the tax break could likely result in Amazon and other tech giants taking their pending plans for new data centers to other states.

The bill now moves to the full House for a vote.

 This Bill Is the Latest in Democrat Assault on Tech Industry

This bill, if it passes, comes on the heels of new retail sales taxes on website designers, IT companies, AI developers, digital advertising and data processing in WA that just went into effect this year. 

Observers and critics say for years the left-leaning tech industry has mostly supported Democratic candidates and polices, but now the legislature has become so emboldend with taxing power they're even 'turning' on one of their biggest allies.