Chesterfield delays data center plan to cut car taxes
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A snapshot of Chesterfield's data centers as of this week. Photo: Courtesy of Chesterfield County
Chesterfield wants to turn its data center boom into cheaper car taxes, but the Board of Supervisors isn't convinced it's the right decision — yet.
Why it matters: Data center revenue could mean hundreds of dollars in annual car-tax savings for residents.
- But some supervisors and residents are questioning whether that money is better spent on schools, infrastructure or housing.
Driving the news: On Wednesday night, the board unanimously delayed a vote to direct future growth in data center tax revenue toward lowering taxes on cars, trucks and motorcycles.
- The proposal is now expected to be picked back up Sept. 23, after supervisors and residents called for more community input.
The intrigue: The debate comes as Chesterfield leaders have signaled in recent meetings that there's little appetite for more data centers, amid growing pushback against the industry across the region.
How it works: Chesterfield's proposal would establish the county's existing data center revenue as a baseline starting in January, then use the new revenue from Google and other already-approved projects to lower the car tax rate.
By the numbers: Chesterfield's car tax is $3.25 per $100 of assessed value.
- Once Google's approved campuses are fully up and running, the county says the projects could generate $31 million to $47 million annually.
- County projections show that revenue could help drop the rate to about $1.79 and save the average car owner about $400 a year.
Between the lines: The county didn't specify an assessed value, make or model, age or methodology for calculating that average.
Friction point: The tax-break pitch is also not winning over some residents.
- Online responses to the county's social media announcement called it everything from a "bribe" to "smoke and mirrors," while others wondered why the money isn't going toward real estate tax relief or schools.
- Chesterfield separately has a 1% sales tax referendum on the November ballot for school construction.
- If the referendum is approved, officials say they'd reduce the real estate tax rate by 2 cents and personal property tax by 10 cents.
What we're watching: The other uses supervisors consider for the data center revenue before next month's meeting.