Every time you look up the news online or browse your favorite clothing store’s website, you’re accessing information that is housed on a computer terminal at some remote location. As the Internet’s reach continues to grow and permeate more and more aspects of the way we communicate, do business, provide healthcare, and simply live our lives, tech companies are increasingly relying on data storage centers to store all that information. In fact, the demand for these centers could very soon outweigh the supply. It is essential that we take steps now to ensure that Missouri has a piece of this quickly expanding industry.
Due to its geography, climate and central location, Missouri, especially Southwest Missouri, is an excellent site for these centers. On Wednesday, I offered substitute legislation for Senate Bill 149, which creates sales and use tax exemptions for data storage centers and allows municipalities to enter into loan agreements or sell, lease or mortgage municipal property for a technology business facility project. The language I offered is very similar to legislation, Senate Bill 343, I filed earlier this session, also relating to data storage centers.
For the last eight years, I’ve been working with various colleagues to get data storage center legislation passed. After speaking with various members in both chambers, as well as the governor’s office, I truly believe we finally have a solid piece of legislation that can be passed by the Legislature and signed by the governor.
Tax exemptions provided for in SB 149 include all machinery; equipment; computers; electrical energy, gas and water; and other utilities, including telecommunication and internet services, that are used in new data storage center facilities.
The act also provides a tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to be eligible for the tax exemption, a company must demonstrate their project will result in at least $25 million in new facility investment and create a minimum of 10 new jobs, with wages of at least 150 percent of the average county wage over a three-year period. The Missouri Department of Economic Development will have to score each project plan, so that the state is guaranteed at least a one-to-one dollar return on investment and jobs.
By attracting these businesses to our state, we can create high-quality jobs, not only at the storage centers themselves, but for the construction of the sites and ancillary businesses that support them, such as electrical maintenance companies. It’s time we pass legislation that makes Missouri competitive in the technology industry, instead of consistently losing out on great opportunities to neighboring states like Oklahoma, Kansas, Nebraska and Iowa, who already have incentives in place to lure these companies to their areas.
Senate Bill 149 puts us in a position where we can compete for the business of future data storage center facilities across the country. Additionally, it is designed so that the state will not only gets its money back, but also make money. This is an opportunity for our state to boldly embrace a new and expanding industry that will help spur job creation throughout the Show-Me State for years to come.
If you have any questions or comments about this or any other matter regarding your state government, please feel free to contact me at (573) 751-1503; you are also welcome to e-mail me at jay.wasson@senate.mo.gov. |
