The Senate passed SB
616 and SB
617, which allows tax breaks for Switch, a Nevada-based data company, and
data colocation centers. The bill passed by a 21-15 vote with minimal
discussion on the Senate floor.
The bills provide a
15-year exemption from the sales tax and the use taxes at the full rate of 6
percent, different from the 4 percent provision passed in the Senate Michigan
Competitiveness Committee. Senate Majority Leader Arlan Meekhof (R-West Olive)
said the change from 4 to 6 percent was intended to reflect what they believe
the House would end up doing, the bills also specifically define “internet data
center,” “data center equipment,” and “collocated business.”
The chamber also
passed SB
618, a bill to provide a 10-year exemption for eligible Internet data
center property, pending approval from local governments no later than March 31
of the first year the eligible Internet data center property would be subject
to the taxes, or if the local government failed to reject the exemption by
April 1, 2016. This bill passed on a
21-15 vote.
The House has not
voted on similar legislation in its chamber, but is expected to soon.