Story perspectives

Virginia Lawmakers Debate Data Center Tax Exemption Repeal

2/28/2026

Left

Virginia Lawmakers Debate

Virginia lawmakers are debating whether to repeal the data center sales tax exemption in budget talks.
Proponents, including a bipartisan group and Virginia senator L. Louise Lucas, say repeal would boost revenue and support families.
Critics, including Virginia state senator Ryan McDougal, warn the change could deter future data-center investments.
The House plan would maintain the exemption through 2035 if environmental standards are met, and the outcome remains uncertain.

Right

Democrats Propose Pay Raise

The amendment would raise salaries for state senators and delegates to $50,000 annually.
It was added by the Democratic majority as part of the budget reconciliation and must pass the House of Delegates.
Senate Republicans argue the pay increase contradicts the Democrats’ affordability platform, noting teachers received only a 3% raise.
The budget also funds childcare, Medicaid, and housing initiatives.
The final outcome remains uncertain as budget negotiations continue.

1 of 2

Virginia Lawmakers Debate

Virginia lawmakers are debating whether to repeal the data center sales tax exemption in budget talks.
Proponents, including a bipartisan group and Virginia senator L. Louise Lucas, say repeal would boost revenue and support families.
Critics, including Virginia state senator Ryan McDougal, warn the change could deter future data-center investments.
The House plan would maintain the exemption through 2035 if environmental standards are met, and the outcome remains uncertain.

1 / 2