Virginia Senators End Data Center Tax Break

Virginia senators voted this month to end a projected $1.6 billion annual sales tax exemption for data-center equipment and software, requiring the industry to resume paying at least a 5.3% sales tax. The bipartisan Senate vote comes amid nationwide pushback over data-center growth, local complaints about noise and grid strain, and now faces House opposition as lawmakers negotiate a budget before the session's end.
Scoring Rationale
Significant policy and industry impact driven by an official bipartisan Senate vote; limited by pending House approval and state-only scope.
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