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County Dems want to ban IDA tax breaks for data centers

By Gregory Bacon 2 min read

MAYVILLE - Although there are no current proposals to build a data center in Chautauqua County, Democratic county lawmakers want to block data centers from getting any tax breaks.

On tonight's Chautauqua County Legislature meeting agenda is a resolution titled "Adopting a Uniform Tax Exemption Policy ... Providing that the Chautauqua County Industrial Development Agency Shall Not Consent to Real Property Tax Exemptions, Mortgage Recording Tax Exemptions, or Sales and Use Tax Exemptions for Data Center Projects."

The resolution has been introduced by the six Democrats in the legislature and is scheduled to be voted on this evening. It did not go before any committees.

There has been talk about a data center in the Portland area, after the Portland Town Board initially expressed interest in one. That proposal has created a lot of protest from local residents. Since then town officials have stated there are no formal proposals.

There have not been any "due diligence" resolutions passed by the county IDA Board of Directors for data centers.

Generally before the county IDA provides any sort of tax incentives, the IDA Board of Directors passes a due diligence resolution where the incentives are investigated. Then a public hearing is held before the IDA Board of Directors holds a final vote.

Even if a proposal was being considered, Gov. Kathy Hochul issued a one-year moratorium on all data centers, which took effect July 14.

The resolution, introduced by legislators Fred Larson, Marcus Buchanan, Robert Bankoski, Thomas Nelson, Sandra Lewis, Robert Whitney, states that the "legislature finds that data center projects often consume significant public infrastructure resources, including substantial electrical power, water resources, and utility capacity, which may impose burdens upon local infrastructure systems without commensurate benefit to the local economy, local workforce, or local tax base."

The resolution continues, stating the legislature "finds that data center projects do not sufficiently advance the economic development purposes set forth in Article 18-A of the GML (General Municipal Law) so as to justify the granting of tax exemption benefits by the (IDA) Agency."

The resolution concludes stating, the "Legislature has determined that it is in the best interest of the residents, taxing jurisdictions, and communities of Chautauqua County to expressly preclude the Agency from consenting to or approving tax exemption benefits for data center projects."

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