RICHMOND, Va. (WRIC) — Virginia finds itself in the midst of another budget standoff, with data centers emerging as a central point of contention.
Governor Abigail Spanberger has thrown her support behind a fresh proposal from the House of Delegates. This plan aims to establish a Virginia Commission on Data Center Accountability, tasked with evaluating the effects of the data center industry across the state.
Spanberger expressed her approval, stating, “The House’s proposal sets up a comprehensive commission with a report deadline of November 1st. This allows for deliberate and focused legislative action in the next General Assembly session. It’s a smart approach to assess our current situation and make informed decisions regarding data centers and their eligibility for sales and use tax exemptions.” She shared these thoughts with 8News on Monday.
In contrast, Senate Finance and Appropriations Committee Chair Louise Lucas (D-Portsmouth) disagrees. In a statement released on Friday, she remarked, “The House and Governor want to study the impact of data centers, despite the legislature already having examined this issue. Virginians face the adverse effects of data centers today. They demand immediate action, not another year’s wait, and expect us to protect their interests over those of affluent corporations.”
Lucas, who initially proposed eliminating the sales tax exemption for data centers, now advocates for implementing a tiered state impact fee on these facilities.
“The biggest concern with the data centers is that they refuse to pay their fair share a taxes,” Lucas said on Sunday.
Meanwhile, despite the tight timeframe, tensions remain high. Spanberger said she hasn’t seen any actual legislative text outlining the Senate’s proposal.
“It is June 15th, and we need a budget by the end of the month, and so I appreciate the House moving forward with actually getting pen to paper and a proposal in front of the public and members of the General Assembly,” Spanberger said.
Meanwhile, Lucas remains defiant.
“The House of Delegates has got to grow a spine and do what’s in the best interests of the people who elected them, and the governor needs to also get on board with us,” Lucas said.
The House returns to Richmond on June 18 ahead of the July 1 budget deadline, while the Senate is set to return on June 22.