State Sales Tax Exemption For Qualified Data Centers

Category: State

Qualifier for State Sales Tax Exemption for Qualified Data Centers: a "data center" is a facility of at least 100,000 square feet in Texas that has been, or will be, specifically constructed or refurbished to house servers and related equipment for processing, storing, or distributing data. The Comptroller's office may certify single-occupant data centers that meet specific capital investment and job-creation requirements as "qualifying data centers."

Certain items necessary and essential to the operation of a qualified data center are temporarily exempt from the 6.25 percent state sales and use tax. Local sales taxes are due on purchases of these qualifying items.