Virginia is racing toward a June 30 budget deadline as an internal Democratic party feud over multi-billion dollar data center tax breaks risks a total state government shutdown.
State Senate leaders are demanding the removal of roughly $2 billion in annual sales tax exemptions for tech giants to ensure they pay their fair share toward local infrastructure. Governor Abigail Spanberger and House leadership oppose the immediate tax hike, favoring a compromise that keeps the breaks while creating a commission to study the industry’s economic impact. The rift highlights growing public concern over the high energy consumption and noise pollution associated with Virginia’s status as the world's data center hub.
Negotiators from both chambers are scheduled to meet this Tuesday to attempt a reconciliation before the state’s current funding expires.
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