The Republican-led Michigan Senate on Tuesday accepted additional tax breaks for Switch. Las Vegas-based Switch is the company that stands behind a West Michigan data center. In 2017, Switch opened a campus of computer servers in Kent County’s Gaines Township after the exemption from sales, use, and business equipment taxes by Michigan senators.
Approval after Switch’s agreement with local school districts
After the legislation for secured specialized tax breaks for data centers in 2015, the company signed an agreement with the state to operate virtually tax-free at the site in 2016. However, in 2019, the municipality of Gaines Township has charged Switch property taxes related to school debt and millages, after the company made claims about an “ambiguity” in the state law.
With this new legislation, three bills will now head to Gov. Gretchen Whitmer’s desk for consideration. While seventeen Republicans and eight Democrats supported the bill, seven Democrats and five Republicans opposed it. This approval came after Switch’s agreement with local school districts. According to the nonpartisan House Fiscal Agency, the bill would reduce school millages by $242,000 for the 2019 tax year.
On the other hand, this decision could be offset by raising taxes on others. The company that was founded in 2000 and headquartered in Las Vegas, Nevada, specializes in data center design and construction. With the increasing need for data centers, Switch aims to empower its clients with virtually unlimited options for innovation, economies of scale, risk mitigation, sustainability, and investment protection.