From: Weir, Bob <BWeir@pwcgov.org>
Sent: Thursday, March 28, 2024 10:55 AM
To: Robert Sweeney <rsweeney@pwchamber.org>
Cc: Shorter, Christopher <CShorter@pwcgov.org>; BOCS COS <BOCS-COS@pwcgov.org>; Robl, Michelle R. <mrobl@pwcgov.org>; Gary L. Jones – Summit Community Bank (gljones@summitfgi.com) <gljones@summitfgi.com>; Snare IV, Ross W *HS <MPZ8DE@uvahealth.org>; Margeaux Clark <mclark@pwchamber.org>
Subject: Re: Computer & Peripheral’s Tax Increase
Dear Mr. Sweeny:
Thank you for your letter of March 27, 2024, it is a pleasant surprise that the Chamber has to some extent seen the light (or come to the dark side in the view of others) with respect to the exaggerated revenue potential of data centers in Prince William County, confirming what I have been espousing for several years.
You are correct in noting that many of the computer servers in the County data centers are owned by or operated for the Federal Government and thus not subject to the County’s Computer and Peripherals Tax. There is nothing the County can do to change that circumstance.
You are also correct in noting that a significant percentage of the computer servers located in many of the remaining “co-location data centers” belong to entities that have never filed a certificate of occupancy or received a business license with Prince William County, therefore making it difficult if not impossible to collect the Computer and Peripherals Tax under present circumstances. Rest assured, that is an issue the County must address and one I am sure will be addressed in the near future.
That being said, it is curious that you brought the issue forward only as a result of the BOCS consideration of raising the Computer and Peripherals Tax; basing your opposition on the diminished potential of the Data Centers’ equipment and the harm such an increase would have on the small business community. While I understand the argument, I would be remiss if I did not note that your calculations regarding the impact are inaccurate and do not reflect the most recent revenue estimates released by staff.
With respect to developing an exemption for businesses that have under $50,000 worth of equipment similar to that adopted for the BPOL tax, I am willing to further explore the concept I just don’t know if we have the statutory authority to create such an exemption.
You assert that the Chamber and the business community are frustrated and embarrassed that the BOCS, just because it has the votes, would aggressively take a position to hurt over 5,000 businesses for less than $1,000,000 in added revenue with less than 90 days’ notice. Clearly that was not the intent of the BOCS and I am frustrated and embarrassed that the Chamber, an organization that purports to represent the interests of “5,056 businesses in Prince William County that are not data centers that report and pay this tax every year”, would utilize such a canard, feigning surprise as the potential for such an increase has been debated for months if not years.
Further, I am frustrated and embarrassed that the Chamber took every opportunity over the past several years to bang on the table demanding approval of every data center project that came down the pike, loudly asserting that their approval would alleviate the residential tax burden but readily ignoring what was clearly an overstated revenue potential. While it is refreshing that the Chamber has now adopted a position nearly identical to the arguments I and others have been making for several years, given the Chamber’s well-established position on data center development for nearly a decade, I find your reversal of course hypocritical at best and your tone the height of arrogance. My frustration and embarrassment is further heightened by your attempt to hide behind the interests of the small business community as the Chamber has largely ignored their many pressing issues for as long as I can remember.
If the Chamber is truly concerned about “a stable and predictable business environment”, I would strongly recommend you put some effort into addressing the complaints my office fields on a daily basis from the small business community regarding inspection delays, permitting delays and of course the impact of the meals tax, all problems that are not generally faced by the data center industry given the resources and additional FTE the County has poured into meeting their every need.
Perhaps the Chamber should also put some effort into addressing the concerns of the small business community with respect to the impact of new transmission lines and related infrastructure necessary for data center expansion on their business and property values rather than acting simply as a reliable shill for the interests of monopoly utilities. Similarly, the Chamber should probably look at the negative impact data center speculation has had on the availability and price of commercial and industrial properties in the County as it is driving many of the small businesses you purport to represent not only out of their current locations but in many cases out of the County entirely.
If you haven’t noticed, this edition of the BOCS is markedly different than those of the past and attempts by the Chamber to flex its perceived muscles in an attempt to shame the BOCS into kowtowing to its agenda will not be looked on favorably. Asserting that the BOCS is aggressively and willfully harming the small business community is probably not a tactic you want to pursue further.
Respectfully,
Bob Weir, Supervisor
Gainesville Magisterial District
13575 Heathcote Blvd, Suite 150
Gainesville, Virginia 20155
Office: 703-792-6195