Bill Text: VA SB513 | 2022 | Regular Session | Prefiled
Bill Title: Data centers; center fixtures are taxed as part of the real property where they are located, etc.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-04-11 - Governor: Acts of Assembly Chapter text (CHAP0672) [SB513 Detail]
Download: Virginia-2022-SB513-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3500 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Article 7 of Chapter 32 of Title 58.1 a section numbered 58.1-3295.3 as follows:
§58.1-3295.3. Assessment of real property; data centers.
A. As used in this section:
"Computer equipment and peripherals" means computer equipment and peripherals subject to classification under the provisions of subdivision A 17 of § 58.1-3503 or under the provisions of subdivision A 43 of §58.1-3506.
"Cost approach" means assessing value by determining the cost to construct a reproduction or suitable replacement of fixtures and deducting physical, functional, and economic depreciation sustained by such fixtures.
"Data center" means the same as such term is defined in subdivision A 43 of § 58.1-3506.
"Fixtures" means all fixtures and equipment used in a data center except computer equipment and peripherals, equipment used for external surveillance and security, and fire and burglar alarm systems. "Fixtures" includes generators, radiators, exhaust fans, and fuel storage tanks; electrical substations, power distribution equipment, cogeneration equipment, and batteries; chillers, computer room air conditioners, and cool towers; heating, ventilating, and air conditioning systems; water storage tanks, water pumps, and piping; monitoring systems; and transmission and distribution equipment.
B. If fixtures are installed at a data center and taxed under the provisions of this chapter, such fixtures shall be assessed using the cost approach.
§58.1-3500. Defined and segregated for local taxation.
Tangible personal property shall consist of all personal property not otherwise classified by (i) §58.1-1100 as intangible personal property, (ii) §58.1-3510 as merchants' capital, or (iii) §58.1-3510.4 as short-term rental property. "Tangible personal property" does not include fixtures, as defined in §58.1-3295.3, if such fixtures are taxed in accordance with §58.1-3295.3. Such tangible personal property is hereby segregated for and made subject to local taxation only pursuant to Article X, Section 4 of the Constitution of Virginia.
