Hanover weighs higher data center tax rate

(The Center Square) – Hanover County is weighing a higher tax rate on data center equipment after removing its current rate from the latest budget.

Officials are reassessing how to generate revenue from a growing pipeline of projects.

County leaders are considering increasing the tax set at 45 cents per $100 of assessed value to as much as $3 per $100. The tax applies to computer equipment inside data centers, meaning it would be paid by operators rather than residents.

The potential change would represent a significant shift from the rate established in 2023 to attract data center development and remains well below the county’s standard business personal property tax rate of $3.57.

The Board of Supervisors removed the existing rate during its April 8 adoption of the fiscal year 2027 budget “in order to reevaluate it,” according to a statement provided to The Center Square by Hanover County.

“As with all policies and fees set by the Board of Supervisors, the board believes it is appropriate to take a fresh look a...