I don't understand why data centers should get special sales tax relief that other businesses don't.
Apart from that, these facilities will strain local resources in rural areas. They've proven in every place they're located to be absolute water and electricity hogs. Rates will rise and wells will run low. It's misleading to pretend other areas haven't experienced this.
Sorry, but if they can't stand on their own without help, please locate elsewhere.
"Nearly 40 states have modernized their tax treatment of data centers through exemptions or rebates. Large scale operators replace their technology equipment about every five years. In states with tax incentives, that equipment is not subject to sales tax."
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The corporations that invest in these data centers are already getting 100% Federal expensing on both plant and equipment. South Dakota has no income tax! That's enough.
In addition, South Dakota already has a business friendly regulatory environment.
We don't need to give away the potential sales and property tax income for cities, counties, and the state in order to make ourselves competitive.
You always have to question when someone says an opportunity is "time sensitive". There's a reason scammers use that angle... They're trying to push through these data centers before people have the chance to find out all the negative parts of them. If they're so great, then there will be plenty more built further into the future and our state can jump on the bandwagon then. Let another state be the guinea pig.
As a former legislator and the founder of a small business that pays sales tax on all supplies and every piece of equipment we use (and which has to charge our clients sales tax on every bit of service they buy), I am skeptical about exempting a single industry from sales tax. We exempt advertising, and that has caused frustration at the Legislature for decades but no one can figure out how to undo it. SD already offers a venue with no income tax; surely that is an advantage over some other states?
Why should the corporations that build these data centers get special treatment? We have to get taxes somewhere since we don't have an income tax. It seems like all the big corporate business owners get all sorts of tax breaks to come into our state where THEY will make money.
My understanding is these take an enormous amount of water and electricity to use. They will be competing with citizens for those utilities and the prices will go up. If citizens have to pay sales taxes they should too.
Sounds like he knows nothing about the industry except talking points. None of his comments has any depth regarding the intricacies or dangers of AI. Let's just jump off a cliff because everyone else is...I thought most people learned that in 3rd grade. You do realize that AI WILL be "the authority" with no possibility for us to "redress" (the word in our constitution that prevents the government from being a dictator). If we allow AI to become the monster it promises, we WILL be at the mercy of those who set the rubric in motion. Before we listen to a kid's talking points maybe ask the wisdom of those of us who have been around a bit and know all that glitters is not gold.
I don't understand why data centers should get special sales tax relief that other businesses don't.
Apart from that, these facilities will strain local resources in rural areas. They've proven in every place they're located to be absolute water and electricity hogs. Rates will rise and wells will run low. It's misleading to pretend other areas haven't experienced this.
Sorry, but if they can't stand on their own without help, please locate elsewhere.
"Nearly 40 states have modernized their tax treatment of data centers through exemptions or rebates. Large scale operators replace their technology equipment about every five years. In states with tax incentives, that equipment is not subject to sales tax."
...........................
The corporations that invest in these data centers are already getting 100% Federal expensing on both plant and equipment. South Dakota has no income tax! That's enough.
In addition, South Dakota already has a business friendly regulatory environment.
We don't need to give away the potential sales and property tax income for cities, counties, and the state in order to make ourselves competitive.
We already are competitive.
Let them come to us.
These AI data centers take up huge resources. Specifically electricity and water. Exempting them from sales taxes is wrong.
If we don't take care of our water now, the only water we will have left is our tears.
You always have to question when someone says an opportunity is "time sensitive". There's a reason scammers use that angle... They're trying to push through these data centers before people have the chance to find out all the negative parts of them. If they're so great, then there will be plenty more built further into the future and our state can jump on the bandwagon then. Let another state be the guinea pig.
As a former legislator and the founder of a small business that pays sales tax on all supplies and every piece of equipment we use (and which has to charge our clients sales tax on every bit of service they buy), I am skeptical about exempting a single industry from sales tax. We exempt advertising, and that has caused frustration at the Legislature for decades but no one can figure out how to undo it. SD already offers a venue with no income tax; surely that is an advantage over some other states?
If it sounds too good to be true, it probably is.
Is he Noem's son in law?
I think so
Why should the corporations that build these data centers get special treatment? We have to get taxes somewhere since we don't have an income tax. It seems like all the big corporate business owners get all sorts of tax breaks to come into our state where THEY will make money.
My understanding is these take an enormous amount of water and electricity to use. They will be competing with citizens for those utilities and the prices will go up. If citizens have to pay sales taxes they should too.
Sounds like he knows nothing about the industry except talking points. None of his comments has any depth regarding the intricacies or dangers of AI. Let's just jump off a cliff because everyone else is...I thought most people learned that in 3rd grade. You do realize that AI WILL be "the authority" with no possibility for us to "redress" (the word in our constitution that prevents the government from being a dictator). If we allow AI to become the monster it promises, we WILL be at the mercy of those who set the rubric in motion. Before we listen to a kid's talking points maybe ask the wisdom of those of us who have been around a bit and know all that glitters is not gold.