South Dakota PUC Proposes Legislation for Data Center Costs and Tax Exemptions
The South Dakota Public Utilities Commission (PUC) is proposing legislation to charge large new customers, such as data centers, the actual costs for processing service contract applications, outlined in House Bill 1038. Additionally, House Bill 1005 seeks to offer a 50-year state sales-tax exemption for data centers that demonstrate they won't raise costs for other electricity consumers and have adequate water supply. These initiatives, led by Republican Sen. Casey Crabtree, follow the failure of similar tax refund legislation in the previous Senate session.
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The South Dakota Public Utilities Commission (PUC) is seeking legislative approval to charge large new customers, such as data centers, the actual costs for processing service contract applications with electricity providers. This proposal is encapsulated in House Bill 1038, which targets customers contracting for 2,000 or more kilowatts.
Funds collected would go to the state treasurer for the PUC gross receipts tax fund. Additionally, House Bill 1005 aims to provide a 50-year state sales-tax exemption for data centers that can prove they won't increase costs for other electricity consumers and have sufficient water supply.
The lead Senate sponsor is Republican Sen. Casey Crabtree. Previous legislation for state sales-tax refunds for data centers failed in the South Dakota Senate last year.
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