Virginia Assembly Approves Budget Including Data Center Tax
PUBLISHED Jun 22, 2026, 4:08 PM ET
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Richmond, Va. — On Monday, June 22, Virginia's General Assembly approved a two-year state budget that imposes a temporary electricity consumption tax on qualifying data centers, establishes a framework for regulated adult-use cannabis sales, and advances funding for education and healthcare; the conference report passed both chambers and now goes to Gov. Abigail Spanberger. The measure passed the House (reported 71-22) and the Senate (reported 23-16) and is estimated to generate nearly $600 million for the general fund while preserving some sales tax exemptions; legislator salaries will increase effective January 13 with about $2.1 million allocated in FY2028, and the governor has signaled she will act before the June 30 deadline.
By Emily Rhodes | JQJO News
Timeline of Events
- Historical: Virginia offered long-standing tax incentives that grew the data center industry.
- Weeks before June 22: Lawmakers debated data center tax breaks and budget trade-offs.
- June 22, 2026: House and Senate approved the two-year budget and HB 30 conference report.
- Late June 2026: The budget was transmitted to Gov. Abigail Spanberger, who pledged action by June 30.
- January 13, 2027 and July 1, 2026: Legislator salary increases take effect Jan. 13; fiscal year funding begins July 1.
News Intelligence
- This new budget could affect your wallet. The data center tax might trickle down to consumers as companies offset costs. If you use cannabis, regulated sales could mean safer products. More funding for education and healthcare could improve local services.
- Articles Published:
- 4
- Right Leaning:
- 1
- Left Leaning:
- 0
- Neutral:
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- Distribution:
- Left 0%, Center 75%, Right 25%
State government and public services will benefit from increased revenue while legislators receive higher salaries under the approved budget.
Data center operators and potentially some consumers could face higher costs due to the new electricity consumption tax.
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Virginia Assembly Approves Budget Including Data Center Tax
https://www.12onyourside.com 8News news.bloomberglaw.comFrom Right
Virginia lawmakers have a state budget, and raises greater than 175%
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