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Ohio data center tax break cost $1.4 billion more than expected in 2025
Ohio’s data center sales tax exemption cost $554.9 million in 2024 and $1.6 billion in 2025, far above the original $136 million estimate.
- On Friday, Democrat State Sen. Kent Smith called for an immediate end to data center tax exemptions, citing a new report showing the breaks cost Ohio $1.6 billion in 2025, eleven times the original projection.
- Republican lawmakers established the exemption in the early 2010s to lure technology companies to Ohio, allowing developers to waive up to 100% of the state's 5.75% sales tax for facilities costing $100 million or more, for up to 15 years.
- In 2024, Ohio Department of Taxation spokesperson Andrea Lannom reported the sales tax exemption actually cost $554.9 million, while the department had forecasted a much lower figure; local sales tax losses added another $166.8 million that year.
- Rep. Adam Holmes, a Muskingum County Republican and committee chair, said the legislative panel will soon field testimony from state officials to understand why initial projections were so far off from actual costs.
- The Greater Cleveland Partnership advocates a 'smart growth approach' to data centers, while opponents cite power grid strain and environmental pollution concerns, with some groups pursuing a ballot initiative to ban new large facilities.
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The Center SquareReposted by 
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Your Alaska LinkCleveland group supports data centers; tax breaks cost $1.5B in 2025
(The Center Square) – A major business group in Ohio is support of data centers, which have sparked opposition in many locations across the state and a state constitutional petition
·United States
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Ohio data center tax break cost $1 billion more than expected in 2025 - Signal Cleveland
Ohio’s biggest tax break for data centers is more expensive than once thought. A lot more expensive. In 2024, the state sales tax exemption for data centers cost Ohio about $555 million in revenue, four times more than the state Department of Taxation forecasted. In 2025, it cost a whopping $1.6 billion, eleven times more than the original estimate of $136 million And that’s to say nothing of the local sales taxes – another $166.8 million in lo…
·Cleveland, United States
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Coverage Details
Total News Sources19
Leaning Left8Leaning Right1Center6Last UpdatedBias Distribution53% Left
Bias Distribution
- 53% of the sources lean Left
53% Left
L 53%
C 40%
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