Henrico slashes tax rates for data centers, hoping to attract business
HENRICO, Va. — The Henrico County Board of Supervisors approved a separate tax rate this week, hoping to attract businesses whose primary services are storage, management, and processing of digital data.
The move drastically cuts the current business property tax rate on computer and related equipment for data centers from $3.50 per $100 of assessed value to just $0.40 per $100. It’s an 88.6 percent tax rate cut.
Henrico now has the most favorable tax treatment for data centers of any Virginia locality with a population greater than 25,000, county officials said. The approved rate will go into effect beginning with the 2017 tax year.
“By creating this new rate for data centers, Henrico County is positioning itself to attract more businesses in this high-growth sector,” Henrico County Manager John Vithoulkas explained. “These businesses bring high-paying jobs to the region, along with significant and ongoing capital investment.”