SALES TAX EXEMPTION FOR DATACENTER EQUIPMENT.

View NCGA Bill Details2015-2016 Session
House Bill 66 (Public) Filed Tuesday, February 10, 2015
AN ACT TO ENACT THE DATACENTER INFRASTRUCTURE ACT.
Intro. by Saine, B. Brown, Hager, Hanes.

Status: Ref To Com On Finance (House Action) (Feb 11 2015)

Bill History:

H 66

Bill Summaries:

  • Summary date: Feb 10 2015 - More information
    Amends GS 105-164.13 to provide that the sales of electricity for use at a qualifying datacenter and datacenter support equipment that is to be located and used at the qualifying datacenter are exempt from the tax imposed by GS Chapter 105, Article 5, Sales and Use Tax. Specifies what types of capitalized property is considered to be "datacenter-support equipment" for tax purposes.
     
    Amends GS 105-164.3, the definitions section for the the sales and use tax article, adding language to define qualifying datacenter as a datacenter that (1) meets the wage standard and health insurance requirements of GS 143B-437.08A and (2) has been certified by the Secretary of Commerce, by way of written determination, that at least $75 million in private funds has or will be invested in the datacenter by the owners, users, or tenants within five years of the date the same make the first real or tangible property investment in the datacenter  on or after January 1, 2012. Makes conforming technical changes to the statute. 
     
    Sets out in GS 105-164.13(55a) when the tax exemption can be forfeited including: the level of investment specified above is not timely, investment is timely but specific datacenter support equipment is not located or used at the qualifying datacenter, or portions of the electricity are not used at the datacenter. Specifies that a taxpayer that forfeits such an exemption is liable for all past taxes avoided as a result of the exemption, computed from the date the taxes would have been due if the exemption was not allowed, plus interest established pursuant to GS 105-241.21. Sets out formula for calculating the interest due depending on the way in which the forfeiture was triggered. 
     
    Effective July 1, 2015, applying to sales made on or after that date. 

Printer-friendly: Click to view