Overview
- Virginia lawmakers, who met for a brief special session Thursday, left without a two-year budget as a sales tax break for data centers dominated talks.
- Senate leaders, including Sen. Louise Lucas, are pushing to scale back or end the exemption, while House negotiators led by Del. Luke Torian want to keep promises made to existing operators under signed agreements.
- The Data Center Coalition said it offered plans to raise new revenue, including one worth $1.1 billion over the next two years, but said lawmakers rejected them and gave little feedback.
- State reports estimate the exemption cut revenue by about $1.6 billion in fiscal year 2025, a cost that helps explain why House and Senate plans are more than $1 billion apart.
- Local school boards and counties say they need a deal soon to set their own budgets before June 30, and expected revenue could change depending on the governor’s decision on a retail marijuana bill.