What Property Taxes Would Apply if a Data Center Comes to Clinton County?
If a large-scale data center is developed in Clinton County, both the building itself and its contents—including high-value computers and other equipment—could be subject to local property taxes unless specific local or state tax exemptions are granted.
How Data Centers Are Taxed:
In Indiana, property taxes generally apply to two main categories: the real estate (land and building), and the business personal property (equipment inside, such as servers, computers, and networking hardware). Local assessors require all businesses, including data centers, to file annual returns on the value of such equipment, which is then taxed by the county.
Possible Exemptions and Incentives:
There are state-level exemptions specifically targeted at encouraging data center development. For large investment projects, companies may qualify for Indiana’s Data Center Sales Tax Exemption, which waives sales and use tax on equipment and energy for up to 25 years (or up to 50 years for investments over $750 million). Local governments, including Clinton County, are also empowered by the state to offer additional property tax abatements or exemptions for both buildings and equipment, subject to negotiated agreements and qualifying investment levels—often starting at $25 million.
Recent Local Discussion:
Recent data center proposals near Frankfort have sparked public debate, with commissioners and residents closely reviewing the potential financial impacts. The county continues to study how such a project, if approved, would affect tax revenue and local services. As part of the process, any abatement agreements or incentives would be publicly considered and negotiated.
Key Takeaway:
Unless an exemption or tax break is specifically approved, a new data center here would generally mean significant property tax revenue for both the building and its high-tech contents. However, state and local incentive programs are often part of negotiations and could result in partial or full exemptions for qualifying projects, especially those making major capital investments.
