Language Page 665, after line 4, insert:"§ 3-5.25 DATA CENTER SALES AND USE TAX EXEMPTIONA. Notwithstanding any other provision of law, the exemption provided in subsections 18 and 19 of § 58.1-609.3, Code of Virginia, shall not apply for any qualifying eligible data center operator or the tenants of the data center beginning on and after July 1, 2025.B. Notwithstanding any other provision of law, the State Comptroller shall transfer $157,400,000 the second year from the general fund to the School Construction Fund and $157,400,000 the second year from the general fund to the Commonwealth Transportation Fund. These amounts represent half of the estimated revenue generated by the 2.025 percent unrestricted sales and use tax under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.) on qualifying computer equipment or softwares as defined in subsection 18 and 19 of § 58.1-609.3, Code of Virginia."
Page 665, after line 4, insert:
"§ 3-5.25 DATA CENTER SALES AND USE TAX EXEMPTION
A. Notwithstanding any other provision of law, the exemption provided in subsections 18 and 19 of § 58.1-609.3, Code of Virginia, shall not apply for any qualifying eligible data center operator or the tenants of the data center beginning on and after July 1, 2025.
B. Notwithstanding any other provision of law, the State Comptroller shall transfer $157,400,000 the second year from the general fund to the School Construction Fund and $157,400,000 the second year from the general fund to the Commonwealth Transportation Fund. These amounts represent half of the estimated revenue generated by the 2.025 percent unrestricted sales and use tax under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.) on qualifying computer equipment or softwares as defined in subsection 18 and 19 of § 58.1-609.3, Code of Virginia."
Explanation
(This amendment repeals the retail sales and use tax exemption for data center equipment and directs transfers of $157.4 million GF the second year to the School Construction Fund and $157.4 million GF the second year to the Commonwealth Transportation Fund for road and bridge construction. These amounts represent the estimated unrestricted sales and use tax generated on the qualifying computer equipment and software based on aggregate reported exempt equipment and software investment in FY 2023 as reported to the Virginia Economic Development Partnership. )