A Northeast Ohio lawmaker is calling for the immediate elimination of Ohio’s sales-tax break for data centers, citing separate reporting by News 5 and Signal Ohio on forgone revenue. The lawmaker, Kent Smith, blasted the incentive during an interview and mentioned that the state gave up almost $1.57 billion in sales-tax revenue on purchases of data center equipment and construction materials last year.
EUCLID, OHIO — A Northeast Ohio lawmaker is calling for the immediate elimination of Ohio ’s sales-tax break for data centers , citing separate reporting by News 5 and Signal Ohio on forgone revenue .
Senator Kent Smith, a Euclid Democrat, blasted the incentive during an interview Monday morning. He and Sen. Louis ‘Bill’ Blessing III, a Hamilton County Republican, have been trying to get the sales-tax exemption scrapped for new data center projects. New numbers from the Ohio Department of Taxation show the state gave up almost $1.57 billion in sales-tax revenue on purchases of data center equipment and construction materials last year, nearly 12 times what state officials initially expected.
Signal Ohio was the first to report on the scope of the 2025 tax exemptions, which almost tripled from the previous year. At this point, the data center incentive is Ohio’s second-largest sales-tax break. Tax-expenditure reports show the largest — totaling about $2.5 billion a year — is for manufacturers, who get an exemption on certain production equipment and supplies.
The sheer speed of the building boom is putting communities on edge and making it tough for everyone — including state officials — to track what’s happening. Ohio’s spending billions on tax breaks for data centers. Now an incentive battle is brewing
Ohio Lawmaker Sales-Tax Break Data Centers Forgone Revenue News 5 Signal Ohio Ohio Department Of Taxation Ohio Tax Credit Authority Sales-Tax Rate Sales-Tax Exemption Tax Incentive Programs Construction Industry High-Tech Jobs New Albany Social Media Campaigns Lobbying Votes Efficacy Analysis
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