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Virginia Lowers Taxes for Data Centers

by Tom Cunningham, Atlanta, July 2013


New legislation approved by the Virginia General Assembly lowers the tax burden on computer equipment and peripherals used in a data center.


HB 1699 creates a separate classification for data center computers, servers, network equipment, appliances, data storage systems and corresponding equipment. This classification allows localities to apply lower tax rates.


Other computer-related items were already separately classified under Virginia law, including:


  • Computer hardware used by businesses engaged in providing data processing

  • Programmable computer equipment utilized in a trade or business

  • Tangible personal property used in the provision of Internet services


The new law extends the lower tax rate classification to facilities whose primary services are the storage, management and processing of digital data.