Rep. Rader Introduces Companion Data Center Sales Tax Exemption Repeal Bill

COLUMBUS – State Rep. Tristan Rader (D – Lakewood) today introduced legislation to repeal the data center sales tax exemption following a recent article indicating that Ohio has forgone $1.6 billion dollars in 2025 due to the incentive. This is a loss 11 times larger than the Ohio Department of Taxation originally estimated.

“In a state where people have to constantly stretch their dollar further, do more with less, and even completely go without certain services, it is shameful that the state government would choose to give away over a billion dollars to big tech companies,” said Rep. Rader. “This is why I am introducing the repeal of the sales tax loophole in the House to make sure we are putting people first, not trillion-dollar tech companies.”

The data center sales tax exemption was originally enacted in 2016 to attract technology companies to the state. Now that Ohio has the fastest growing concentration of data centers in the country, the incentive has outlived its necessity.  

“Today Governor DeWine announced a temporary suspension to the exemption. This is a step in the right direction, but it is not nearly enough,” continued Rep. Rader. “Governor DeWine never should have reinstated this exemption in the first place after it was eliminated in last year’s budget. Ohioans are tired of a tax system that shifts the burden onto working families while the wealthiest continue to receive special treatment. Our schools, roads, libraries, and public services depend on everyone paying their fair share, and this exemption should be permanently repealed.”

This legislation mirrors the bipartisan data center sales tax repeal effort in the Ohio Senate and has co-sponsors from both parties.