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Washington provides sales tax exemption for urban data centers


The Washington Department of Revenue released a notice providing that effective June 9, 2022, qualifying businesses and tenants may apply for a sales and use tax exemption for purchases of server equipment and infrastructure for computer data centers located in urban areas pursuant to 2022 House Bill 1846. Eligible urban areas are those counties with population greater than 800,000, which includes King, Pierce, and Snohomish counties. Eligible computer data centers must have at least 20,000 square feet dedicated to working servers. In the first calendar year, the Department will review applications on a first-come first-served basis, and approve only six applications.


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