executive order<\/a> she signed in July establishing a one-year moratorium on new data center development in the state.<\/p>\nAs part of the newly announced framework, Hochul is \u201cpursuing legislation to repeal sales tax exemptions for massive data centers across the state.\u201d<\/p>\n
Some business leaders don\u2019t agree with her approach.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n
\u201cRepealing equal tax treatment for data centers is actually discrimination against data centers. It\u2019s a more complex, it\u2019s an unfair tax policy that will throw New York into a competitive disadvantage,\u201d said Pete Sepp, president of the National Taxpayers Union. \u201cAny New Yorker who is concerned about inflation right now should be very concerned about the governor\u2019s proposal. It will guarantee higher prices for all kinds of goods and services.\u201d<\/p>\n
Sepp said, \u201cSales tax exemptions of raw materials and equipment are a longstanding feature of most state tax codes.\u201d<\/p>\n
If they\u2019re repealed for data centers in the Empire State, that could discourage future business.<\/p>\n
Sepp adds while the focus is on AI data centers, he said data centers support \u201cso much more,\u201d including \u201ceverything from the groceries we buy and the credit cards and social media we use.\u201d<\/p>\n
\u201cThese kinds of things are very important goods and services to New Yorkers that are going to get a lot more expensive if Gov. Hochul starts applying an inconsistent tax policy towards data centers,\u201d said Sepp.<\/p>\n
On Tuesday, Hochul introduced the framework. She said her approach is to protect communities who are interested in hosting a data center.<\/p>\n
\u201cIf you come here, you\u2019re going to pay the community,\u201d she said during an interview on NY1\u2019s Inside City Hall.<\/p>\n
Under the framework, a 50-megawatt data center would carry a recommended community investment level of $50 million. The framework also recommends ongoing transparency once a facility is operating including through annual reporting to host communities on metrics such as employment, water and utility usage and energy demand.<\/p>\n
\u201cIt\u2019s upstate New York that\u2019s vulnerable,\u201d said Hochul. \u201cIn fact, I have 30 applications for hyperscale data centers \u2013 the big guys \u2013 on the books right now. So, I needed to take a pause and slow it down, but my job is not to just be first in the nation with the moratorium, but the first in the nation to get it right.\u201d<\/p>\n
Hochul said she wanted to provide the framework especially for smaller, rural communities who don\u2019t have big staffs to negotiate with the data centers.<\/p>\n","protected":false},"excerpt":{"rendered":"As part of her community investment framework, Gov. Kathy Hochul announced protections for communities from exploitative data center…\n","protected":false},"author":2,"featured_media":350697,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[206,9,11,10,49,51,50,12,5304,112,108,87,200],"class_list":["post-350696","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-albany-capital-region","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-new-york-state-headlines","tag-new-york-state-news","tag-news","tag-nicole-neuman","tag-ny-state-of-politics","tag-ny-state-of-politics-blog","tag-politics","tag-vod"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/350696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=350696"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/350696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/350697"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=350696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=350696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=350696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}