Rep. Jacobsen sponsors legislation to level the playing field for data centers

Rep. Cyndy Jacobsen introduced a bill this week that would help data centers in Pierce County compete with similar companies in other parts of the state.

House Bill 1473 would level the playing field by addressing the taxation of Pierce County data centers, putting them at the same rate as rural areas in Washington.

“I brought this bill forward because Pierce County is currently at a real competitive disadvantage when it comes to attracting data centers, which help create tech jobs,” said Jacobsen, R-Puyallup. “There is no reason Pierce County should not have more high paying tech jobs right here.”

Currently, Washington is one of 26 states which offer tax incentives for data centers. However, unlike other states, Washington does not offer these incentives statewide, which means urban areas are falling behind.

While rural Eastern Washington areas can incentivize data centers — and the local jobs, economic growth, and tax revenues they bring – urban areas, like Pierce County, cannot. The problem is further compounded because Oregon, with its favorable tax structure, including the lack of a sales tax, has become a data center hub.

The legislation would bring taxation equity to data centers throughout the state, paving the way for new, family-wage jobs in Pierce County.

“I am excited about this bill because we need jobs close to home in the 25th District,” added Jacobsen. “Data centers bring regional economic growth. We need local family-wage jobs, so our kids do not have to commute to Seattle or Bellevue to find work. We can do better.”

The legislation has been referred to the Finance Committee, where it awaits a public hearing.

The 2021 legislative session is scheduled to run 105 consecutive days, ending on April 25.

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Washington State House Republican Communications
houserepublicans.wa.gov