HB 2014, the “Microgrid bill” establishes special rules for the property tax distribution from High Impact Data Centers. Under it, all ad valorem property tax from the incremental assessed value of the data center is diverted to the state rather than the county sheriff’s tax office- that includes property tax revenue that would have been distributed to counties, school districts, and municipalities (if the property were in a municipality).
Senate committee changes sought to return a portion of that property tax revenue to the local governments. But under the Senate’s proposed amendment, the 30-40 percent that is returned goes in full to the county, with none returned to the school district or municipality- even as the diverted revenue would have gone to all three under current law. While some have argued that school districts are held harmless because of the state aid formula, that would not be the case in a school district in which the diverted revenue was greater than the state share of school funding, as could easily be the case with a planned data center in Tucker County.
Municipalities are certainly not held harmless if a data center were built within the limits of a municipality, as there is no state aid to offset the loss to them from receiving none of the property tax funding envisioned in the Senate committee amendment.
For a hypothetical $1.5 billion “High Impact Data Center” investment on $2 million of existing property in Tucker County, under current law the property tax distribution would be as follows, excluding excess and bond levies:
| Tucker County | $4,650,192 |
| Tucker County Schools | $6,993,312 |
| TOTAL | $11,643,504 |
Under the amended version of HB 2014 that passed the house, the property tax raised from the $1.5 billion improvement would be diverted to the state. The property tax retained by the local governments would only come from the $2 million of existing property. The property tax retained by local governments would be as follows, excluding excess and bond levies:
| Tucker County | $6,192 |
| Tucker County Schools | $9,312 |
| TOTAL | $15,504 |
Under the amended version of HB 2014 with the Helton Amendment, 40% of the total property tax revenue diverted to the state from the $1 billion improvement would be returned to the county government where the data center is located, with none going to the school district or municipality. The property tax distribution would be as follows:
| Tucker County | $4,657,392 |
| Tucker County Schools | $9,312 |
| TOTAL | $4,666,704 |
Overall, $6,976,800 would be lost by local governments. Tucker County Commission would see an increase of $1,072,800 compared to current law, but Berkeley County Schools would lose $6,984,000.
Under the current school aid formula, Tucker County School’s local share is $4,284,420 and the state aid is $6,039,052 for a total of $10,323,472. Under current law, with the $1.5 billion investment, Tucker’s local share would increase to $10,578,400 and the state share would fall to $0.
Under the amended version of HB 2014, the school aid formula would not replace all of the lost revenue by Tucker County Schools, with the school district losing $254,929 compared to what they would collect under current law.
Put simply, Tucker County Schools would be worse off under this amendment and current law, losing approximately $254,929 or $260 per pupil.
This could create an incentive for school districts or municipalities where data centers locate to try to enact an excess levy to benefit at least somewhat from the data center, potentially leading to tax increases for all residents and businesses in the county.
See this example from Doddridge County:
For a hypothetical $1.5 billion “High Impact Data Center” investment on $2 million of existing property in Doddridge County, under current law the property tax distribution would be as follows, excluding excess and bond levies:
Doddridge County $4,741,200
Doddridge County Schools $6,984,000
TOTAL $11,725,200
Under the amended version of HB 2014 that passed the house, the property tax raised from the $1.5 billion improvement would be diverted to the state. The property tax retained by the local governments would only come from the $2 million of existing property. The property tax retained by local governments would be as follows, excluding excess and bond levies:
Doddridge County $6,322
Doddridge County Schools $9,312
TOTAL $15,634
Under the amended version of HB 2014 with the Helton Amendment, 40% of the total property tax revenue diverted to the state from the $1 billion improvement would be returned to the county government where the data center is located, with none going to the school district or municipality. The property tax distribution would be as follows:
Doddridge County $4,690,080
Doddridge County Schools $9,312
TOTAL $4,410,974
Doddridge County Commission would see a decrease of $51,120 compared to current law, and Berkeley County Schools would lose $6,285,600.
Under the current school aid formula, Doddridge County School’s local share is $11,216,295 and the state aid is $0 for a total of $11,216,295. Under current law, with the $1.5 billion investment, Doddridge’s local share would increase to $17,501,895 and the state share would remain at $0.
Under the amended version of HB 2014, the school aid formula would not replace all of the lost revenue by Doddridge County Schools, with the school district losing $6,285,600 compared to what they would collect under current law.
Put simply, Doddridge County Schools would be worse off under this amendment than current law, losing approximately $6.2 million or $5,300 per pupil.
See this example from Marshall County:
For a hypothetical $1.5 billion “High Impact Data Center” investment on $2 million of existing property in Marshall County, under current law the property tax distribution would be as follows, excluding excess and bond levies:
Marshall County $4,006,800
Marshall County Schools $6,984,000
TOTAL $10,990,800
Under the amended version of HB 2014 that passed the house, the property tax raised from the $1.5 billion improvement would be diverted to the state. The property tax retained by the local governments would only come from the $2 million of existing property. The property tax retained by local governments would be as follows, excluding excess and bond levies:
Marshall County $5,342
Marshall County Schools $9,312
TOTAL $14,564
Under the amended version of HB 2014 with the Helton Amendment, 40% of the total property tax revenue diverted to the state from the $1 billion improvement would be returned to the county government where the data center is located, with none going to the school district or municipality. The property tax distribution would be as follows:
Marshall County $4,401,662
Marshall County Schools $9,312
TOTAL $4,410,974
Marshall County Commission would see an increase of $389,520 compared to current law, but Berkeley County Schools would lose $6,984,000.
Under the current school aid formula, Marshall County School’s local share is $3,245,116 and the state aid is $0 for a total of $32,245,116. Under current law, with the $1.5 billion investment, Marshall’s local share would increase to $38,530,716 and the state share would remain at $0.
Under the amended version of HB 2014, the school aid formula would not replace all of the lost revenue by Marshall County Schools, with the school district losing $6,285,600 compared to what they would collect under current law.
Put simply, Marshall County Schools would be worse off under this amendment than current law, losing approximately $6.2 million or $1,500 per pupil.
See this example from Wetzel County:
For a hypothetical $1.5 billion “High Impact Data Center” investment on $2 million of existing property in Wetzel County, under current law the property tax distribution would be as follows, excluding excess and bond levies:
| Wetzel County | $4,510,800 |
| Wetzel County Schools | $6,984,000 |
| TOTAL | $11,494,800 |
Under the amended version of HB 2014 that passed the house, the property tax raised from the $1.5 billion improvement would be diverted to the state. The property tax retained by the local governments would only come from the $2 million of existing property. The property tax retained by local governments would be as follows, excluding excess and bond levies:
| Wetzel County | $6,014 |
| Wetzel County Schools | $9,312 |
| TOTAL | $15,326 |
Under the amended version of HB 2014 with the Helton Amendment, 40% of the total property tax revenue diverted to the state from the $1 billion improvement would be returned to the county government where the data center is located, with none going to the school district or municipality. The property tax distribution would be as follows:
| Wetzel County | $4,597,290 |
| Wetzel County Schools | $9,312 |
| TOTAL | $4,613,246 |
While Wetzel County Commission would see an increase of $51,120 compared to current law but Berkeley County Schools would lose $6,984,000.
Under the current school aid formula, Wetzel County School’s local share is $17,867,151 and the state aid is $0 for a total of $17,867,151. Under current law, with the $1.5 billion investment, Wetzel’s local share would increase to $24,152,751 and the state share would remain at $0.
Under the amended version of HB 2014, the school aid formula would not replace all of the lost revenue by Wetzel County Schools, with the school district losing $6,285,600 compared to what they would collect under current law. Put simply, Wetzel County Schools would be worse off under this amendment than current law, losing approximately $6.2 million or $2,900 per pupil.
