Data centers have become a flash point around the state, with some Iowa counties enacting moratoriums. Both candidates for governor have proposed tax changes for data centers. National Taxpayers Union President Pete Sepp says data centers will power America’s economy for at least 25 years and policymakers should establish consistent, uniform tax policy for data centers.
“Enacting bans on data centers or slapping higher taxes on them that other businesses don’t have to pay — that’s the wrong direction for a rational policy,” Sepp said. Rob Sand, the Democrat running for governor, has called for ending the state sales tax exemptions for the computers, servers and other equipment purchased for data centers. Zach Lahn, the Republican candidate for governor, has proposed higher property taxes on data centers, to try to lower taxes for other property owners. Sepp says those kind of proposals lead to economic distortions.
