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re: Data center tax abatements losing states billions
Posted on 4/19/26 at 6:49 am to LemmyLives
Posted on 4/19/26 at 6:49 am to LemmyLives
How do you lose money that would not be realized without the tax incentives? 100% of $0 is still $0.
0
Posted on 4/19/26 at 7:20 am to SFCSaint77
quote:
Are they saying they are losing revenue because we grant tax breaks
You can't lose what you never had.
This article has that "all money belongs to government" frame. The one where government is there to tell you how much you can keep.
Posted on 4/19/26 at 8:46 am to TenWheelsForJesus
quote:
Like every other company? And these services are still being used in the area where actual people are, right? A company isn't setting up shop and then sending police and firemen out of state, right? If a company needs these services, it's for people that live in the area.
Should we tell these people that if they need police, fire, or emergency services that they are just out of luck? We'll send an ambulance after they clock out and go home?
I don't know what you're saying here. If an industrial plant has an emergency they use the local police and fire services. If property taxes are used to fund those services, and the company is getting a property tax abatement, then they're using services they aren't paying for.
ie, the paper mill in Bogalusa would have to pay $4 million in property taxes. Instead they pay $1 million. Are you going to honestly sit here and tell me that the papermill isn't bad for Bogalusa over all? The people that work there don't even live in town, some out of State. The shipping trucks destroy the towns infrastructure. They don't use local contractors for contracted maintenance work. And if you ask why no one wants to come to Bogalusa, it's the smell.
So tell me how it's valuable to the average tax payer to give them a tax abatement? It's like buying drugs.
Posted on 4/19/26 at 8:54 am to Gee Grenouille
Data centers have private security that are much more sophisticated than you local sheriff's department.
Posted on 4/19/26 at 9:01 am to Gee Grenouille
quote:There is no need to guess. It was laid out in specifics earlier in the thread.
I don't know what you're saying here. If an industrial plant has an emergency they use the local police and fire services. If property taxes are used to fund those services, and the company is getting a property tax abatement, then they're using services they aren't paying for.
quote:
That is a horrible article. Was it written by AOC? Goodness!
Foregone tax revenue d/t tax breaks and/or incentives is not "losing" states a dime. It is bringing in less revenue than would be the case if the institutions were fully taxed. ............ BUT .............. if they were fully taxed, THE CENTERS WOULD NOT BE THERE IN THE FIRST PLACE!
Here is what ""Losing States Billions" actually looks like ...
What Georgia's data centers actually generated in fiscal year 2025:
Georgia's "foregone revenue" from data center tax breaks was $472 million. So the OP authors would characterize that as "losing state money" to the tune of nearly $500M.
HOWEVER ...
Data centers concomitantly created 28,350 construction-related jobs adding $3.4 billion to the state economy, plus 5,471 operations jobs contributing another $823 million. The centers also dramatically increased property values, adding ~ $1.8 billion to assessed value, with buildings adding at least $450 million more, yielding an average of nearly $28 million in annual property tax per project. LINK
So for Georgia specifically, the math looks roughly like this: the state gives up ~$472 million in sales tax exemptions, but gets back $4.2+ billion in economic activity, thousands of jobs, and swelling local property tax rolls funding schools and infrastructure.
$4.2B is 11% of GA's 2025 budget!
That is 11% GA would not have if the Data Centers went elsewhere.
So, given the AOC-Amazon accounting premise ... i.e., "no tax breaks for 'rich' corporations," GA would have no Data Centers, and overall state revenue would be $34.75B instead of $39B.
Posted on 4/19/26 at 9:03 am to SFCSaint77
quote:
Are they saying they are losing revenue because we grant tax breaks to data centers or that we are actively spending money?
AOC complained about that Amazon center in Queens for much the same reason and cost the City thousands of jobs.
This post was edited on 4/19/26 at 9:11 am
Posted on 4/19/26 at 9:53 am to LemmyLives
Tax paying Americans are getting fricked in the rear by data centers.
They give the Power Companies a bunch of cash up front, then when that dwindles, we, are on the hook for it after that.
A local town near st.louis, just voted out half of the board, who were up for reelection, recaling the mayor, and going after the rest in next election. They told board NO, board, getting kickbacks, kept pushing it thru,
Listen dickhead politicians, you serve us, not the other way around. We should be doing this in DC.
They give the Power Companies a bunch of cash up front, then when that dwindles, we, are on the hook for it after that.
A local town near st.louis, just voted out half of the board, who were up for reelection, recaling the mayor, and going after the rest in next election. They told board NO, board, getting kickbacks, kept pushing it thru,
Listen dickhead politicians, you serve us, not the other way around. We should be doing this in DC.
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