Utah moving to exempt NSA Data Center from tax
Source: Salt Lake Tribune
Utah officials are backing off a law that could tax the energy used by the National Security Agencys new data center, in part because it was discovered former Gov. Jon Huntsman once said the state would not raise electric rates on the center for at least six years.
Rick Mayfield, the director of the Utah Military Installation Development Authority (MIDA), which could impose the tax, on Thursday said an attorney for the authority has been speaking with an NSA attorney to write an amendment to the law enacted this year. The Utah Legislature would then consider a bill when it meets in January.
"We think whats going to happen is there will be proposed legislation that will exempt the [Utah Data Center] from this tax," Mayfield. "What we didnt understand was the prior administration made a promise that for six years there wouldnt be an increase" in electricity rates.
Mayfield said MIDA staff recently learned Huntsman made that commitment when he was trying to lure the data center to Utah, though Mayfield said no one in Utah or NSA headquarters in Maryland can find documentation of it. Mayfield didnt know when the clock was to begin ticking on the six-year commitment.
Read more: http://www.sltrib.com/sltrib/politics/56677051-90/bill-center-com-data.html.csp
DallasNE
(7,402 posts)Because of that nobody knows when the clock starts ticking. Maybe they should contact Edward Snowden. And Utah is set to honor that commitment. Just grand.
TRoN33
(769 posts)jacked up prices for their electrical bills even most of them said that they literally did turned off all of electrical and unplugged it except for refrigerators yet they are getting the monthly bills of $200-300.
liberal N proud
(60,334 posts)Isn't the government exempt from local taxes.
24601
(3,959 posts)does not pay state and local taxes. There is no property tax paid on the White House. When the FBI gasses up their vehicles, they are exempt from tax.
JimDandy
(7,318 posts)they would probably not be exempt.
ETA: Here is how it's able to be taxed:
"The Utah agency that will levy the energy tax on the data center is called the Utah Military Installation Development Authority (MIDA). It provides municipal services to military properties being leased to and developed by private companies. For example, the agency installed utilities for a 550-acre commercial development at the Hill Air Force Base near Ogden, the Salt Lake City Tribune reports. MIDA was asked by the federal government to help build the utilities for the NSA data center, according to the paper. MIDA typically funds its operations by taxing the private companies that lease property. But since the NSA data center has no private sector tenants, MIDA asked to be able to levy an energy tax instead. Rather than tax the federal government, it will tax the PacifiCorp-owned utility company Rocky Mountain Power, MIDA director Rick Mayfield told the paper."
http://www.wired.com/wiredenterprise/2013/05/nsa-tax/