Stewart Pushes Tax Hike On Data Centers: Report

WOODBRIDGE, VA — Prince William County leaders are considering a boost in the county's tax on data centers to offset a possible increase next year in property taxes, according to a media report. Corey Stewart, chairman of the Board of County Supervisors, is proposing to triple the county's tax on computer equipment to raise more funds from owners of the massive buildings, which house the servers that form the foundation of the internet.

Stewart made his proposal Tuesday as the board took its first look at the county budget for fiscal 2019, InsideNova reported. The nearly $1.2 billion budget proposed by County Executive Christopher Martino calls for pay raises for Prince William's police officers, firefighters and sheriff's deputies, among other measures.

The supervisors do not expect to raise property tax rates, but as property values rise, the budget projects that the average property tax bill will rise by $136 next year. The county taxes real estate at $1.125 per $100 of assessed value.

To offset this increase, Stewart called for shifting some of the burden to "big data," InsideNova reported. He asked the supervisors to consider raising the county's computer equipment tax from $1.25 per $100 of assessed value to match the county’s personal property tax rate of $3.70 per $100, generating an extra $20 million per year, InsideNova reported.

In a nonbinding measure, the supervisors voted 6-1 to advertise the higher tax rate. Vice Chair Marty Nohe, R-Coles, cast the dissenting vote, saying it will harm the county's effort to expand the commercial tax base.

Stewart said his proposal isn't final, as the board will spend the next two months shaping the fiscal 2019 budget.

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