Updated
Updated · Niagara Gazette · Aug 6
Niagara County Legislature Seeks Audit of Data Center Tax Break Costing Millions
Updated
Updated · Niagara Gazette · Aug 6

Niagara County Legislature Seeks Audit of Data Center Tax Break Costing Millions

1 articles · Updated · Niagara Gazette · Aug 6

Summary

  • Niagara County lawmakers unanimously passed a resolution Tuesday urging Gov. Kathy Hochul to order an immediate, independent audit of the Internet Data Center Sales Tax Exemption.
  • The legislature said the decades-old exemption may be wrongly claimed by internet data centers, including Lake Mariner in the Town of Somerset, draining millions of dollars from state and local tax revenue.
  • The request targets the state Department of Taxation and Finance, which lawmakers want to conduct a comprehensive review of how the exemption is being used.
  • The move raises pressure on Albany to scrutinize a long-standing tax incentive that county officials argue may no longer be applied as intended.

Insights

Will a multibillion-dollar mega-campus face a massive retroactive tax bill if state auditors decide their internet exemption is invalid?
Could a 26-year-old tax loophole cost taxpayers billions as massive AI and crypto data centers quietly drain local resources?