The city of Virginia Beach has reduced the tax rate for data-center equipment, joining Henrico County in a bid to attract data centers with tax incentives.
The beach city’s new rate drops the tax on computers and peripherals used in data centers from $4 to 40 cents per $100 of assessed value, a reduction of more than 88 percent.
In April, Henrico dropped its business property tax rate on computers and related equipment for data centers from $3.50 to 40 cents per $100 of assessed value.
The lower tax rate in Virginia Beach is one of several new initiatives the city is taking to welcome data centers.
“This tax rate is highly desirable and puts us in a very strong competitive field to attract data centers,” Virginia Beach Economic Development Director Warren D. Harris, said in a statement. “We want data center operators to know we have the resources in place to support their global customer base.”
