Politics
Ohio proposal would end local property-tax breaks for data centers
House Bill 999 would bar state and local agencies from granting property-tax exemptions to data centers and explore ending existing deals. The proposal is awaiting a committee assignment as Ohio lawmakers debate whether tax incentives deliver enough public benefit.
COLUMBUS, Ohio — Ohio Rep. Daniel Troy has introduced legislation that would prohibit data centers from receiving property-tax exemptions, a change that could affect deals worth millions of dollars to major technology companies.
House Bill 999, introduced this month, would bar state and local agencies from granting property-tax exemptions to data centers. Troy, a Democrat from Willowick, said the measure would stop future abatements and examine whether existing ones could be ended.
Troy argues the incentives shift costs onto other property owners. He said requiring data centers to pay taxes based on their full property value could ease some of the burden on Ohio residents.
The proposal comes as communities across the state weigh the tax revenue they forgo against the prospect of attracting large data-center investments. Abatements are generally negotiated locally, making it difficult to compile a statewide picture of their cost.
The deals can be substantial. Columbus approved a 15-year property-tax break in 2021 for a Google-linked data center, estimated at $54 million. Amazon saved $5.4 million in property taxes on its Hilliard data centers in 2024. In New Albany, abatements commonly last 10 to 15 years, with larger projects eligible for agreements as long as 30 years; the city requires annual minimum payments under a formula.
The economic case for abatements remains contested. A Sept. 21 survey of 40 economists at Ohio universities, conducted by Scioto Analysis, found 62% believed local property-tax abatements are effective in attracting data-center development. Twenty-seven percent disagreed, while five respondents were uncertain.
Troy has worked with Republican Rep. David Thomas of Jefferson on proposals to address Ohioans’ property-tax burdens. Thomas is not a sponsor of H.B. 999 but has also called for data centers to pay their share.
The new bill goes further than H.B. 646, an earlier proposal that would have capped data-center property-tax abatements at 50% and required enforcement of companies’ promises tied to tax breaks. That bill stalled after lawmakers disagreed over state sales-tax exemptions for data centers.
Ohio’s sales-tax exemption is separate from local property-tax deals. Gov. Mike DeWine paused the exemption for new recipients indefinitely in June, while existing agreements remain in place. Troy said the sales-tax break had cost the state $1.6 billion as of 2025.
H.B. 999 has not yet been assigned to a committee. With lawmakers expected to return after the November election, action on the proposal is unlikely before then.