Washington DOR Modifies Sales and Use Tax Exemption for Rural Data Centers

The Washington Department of Revenue (DOR) issued a Special Notice, announcing changes to the state’s sales and use tax exemption for qualifying rural data centers. Effective July 1, the exemption for rural data centers that qualified through refurbishment will expire. Beginning July 1, new exemption certificates for the refurbishment of rural data centers may no longer be issued. In addition, replacement server equipment is removed from the definition of eligible server equipment, making purchases of replacement server equipment ineligible for the retail sales and use tax exemption. Data centers located in rural counties should review planned refurbishment and equipment purchases ...