Data center tax break close to getting zapped by WA Legislature

Tax breaks for data center operators could soon be stripped from Washington state law.

On Saturday, the House Finance Committee voted 8 to 6 to approve Senate Bill 6231. The bill next awaits a House floor vote.

As it stands, data center operators in most Washington counties do not pay the 6.5% sales tax on server equipment. That equipment is typically replaced every three to five years, and current law exempts sales tax on purchasing new or replacing old server equipment. It also doesn’t apply sales tax to labor hired to install the equipment.

The proposal would eliminate a portion of those tax exemptions: the break for replacing or refurbishing older server equipment. It would leave in place the exemption for purchasing new equipment.

https://washingtonstatestandard.com/2026/03/07/data-center-tax-break-close-to-getting-zapped-by-wa-legislature/