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Bill

SB 652

Relating to distribution of tax revenues collected from data centers

2026 Regular Session

SB 652 redirects West Virginia's data center tax revenues toward specified funds, reshaping fiscal priorities and potentially affecting state competitiveness for tech investment.

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WeVote Research Nonpartisan
Bill Summary · SB 652

Legislative bill overview

SB 652 modifies how West Virginia allocates tax revenues generated from data center operations within the state. The bill directs a portion of these collected taxes toward specific funds or programs rather than following the previous distribution formula. This represents a shift in fiscal policy regarding one of the state's growing economic sectors.

Why is this important

Data centers represent significant capital investment and job creation potential for West Virginia, making the tax revenue structure a material factor in attracting and retaining these facilities. How these revenues are distributed affects funding for schools, infrastructure, and other state services that compete for the same pool. The policy signals West Virginia's priorities in economic development and infrastructure investment.

Potential points of contention

  • Revenue allocation trade-offs: Directing funds to specific programs may reduce resources available for other state priorities like education or general operations
  • Competitive incentives: Changes to data center taxation could affect the state's ability to compete with neighboring states offering different tax treatment
  • Fiscal impact uncertainty: The bill's actual revenue impact depends on future data center growth and investment levels, which are difficult to predict

Compiled from official sources — confirm details with the bill’s official record.

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