SB 868 Summary

• Establishes sales and use tax exemptions for new data storage centers and server farm facilities requiring at least $5 million in investment over 36 consecutive months, effective August 28, 2010

• Exempts utilities (electrical energy, gas, water, telecommunications), machinery, equipment, computers, and construction materials for qualifying new facilities from state and local sales taxes

• Provides exemptions for expanding existing facilities with at least $1 million in net new investment over 12 consecutive months, limited to utility and equipment expenses exceeding prior baseline usage

• Requires projects to submit plans to the Department of Economic Development for conditional approval, with Department of Revenue issuing tax refunds and exemption certificates upon verification of investment thresholds

• Designates the Departments of Economic Development and Revenue to jointly conduct audits and promulgate rules implementing the exemptions