HCS/SS/SCS/SB 149 - This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least $25 million of new facility investment and create at least 10 new jobs with wages of at least 150 percent of the county average wage over a three year period. The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least $5 million of new facility investment over a one year period and create at least 5 new jobs with wages of at least 150 percent of the county average wage over a two year period.
New data storage centers may receive incentives for a maximum project period of 15 years. Existing data storage centers may receive incentives for a maximum project period of 10 years.
The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.
This act is similar to SB 343 (2015), HB 497 (2015), SB 633 (2014), HB 1444 (2014), HB 1502 (2014), SB 46 (2013), SB 394 (2013), HB 222 (2013). This act is similar to provisions contained in SB 57 (2015), HB 1498 (2014), HCS/HB 1501 (2014), HCS#2/SCS/SB 777 (2014), SS/SCS/SB 120 (2013), HCS/HB 698 (2013), HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 112 (2013), SCS/SB 584 (2012), SB 8 (1st Ex. Session), SB 217 (2011), and SB 868 (2010).
MIKE HAMMANN