Washington State Advances Rollback of Data Center Tax Exemptions

March 2, 2026, 9:13 PM UTC

Washington, home to tech companies like Microsoft and Amazon, would end its sales tax exemptions for data centers under a bill moving through the state legislature.

The state senate passed a bill (S.B. 6231) that, if enacted, would stop new sales tax exemptions for data centers from being issued and end all existing exemptions on July 1. The bill now heads to the house.

The state currently allows data centers to claim sales tax exemptions for an array of equipment and installation costs in both rural areas and densely populated counties. In counties with populations of more ...

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