Arizona Offers Special Tax Relief for Owners, Operators, Tenants of Computer Data Centers
Through newly enacted legislation (H.B. 2009), Arizona offers qualified owners, operators and co-location tenants of computer data centers (CDC) an exemption from transaction privilege tax, use tax, and other similar taxes imposed at the municipal level on qualified computer data center equipment installed in the CDC.
Effective Sept. 13, CDCs may qualify for tax relief under the legislation by satisfying one of two requirements:
• the owner or operator of a new CDC, within five years of certification by the Arizona Commerce Authority, creates a minimum investment of $25 million, if located in a county with a population of 800,000 or less, or $50 million if located in a county with a population greater than 800,000; or
• the owner or operator of an existing CDC creates a minimum investment of $250 million within the 72 months prior to Sept. 1, 2013.
The legislation defines “computer data center equipment” as “equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements, and upgrades to this equipment, whether any of the property is affixed to or incorporated into real property.”
Text of the legislation is at http://www.azleg.gov/legtext/51leg/1s/laws/0009.pdf.