LANSING, Mich. — State Sen. Jim Runestad announced his plans to introduce legislation that would repeal the 2024 sales and use tax reforms that were specifically carved out to promote and support data center developments.
“People have been left in the dark about data center developments in Michigan despite the clear, long-term effects these projects can have on local communities, natural resources and power grids,” said Runestad, R-White Lake. “Homes are being torn down, farmland is being dug up and Michigan towns are being left with permanent changes — and the answer is always the same from those in charge: ‘we can’t talk about it.’”
During a vote in December of 2024, the Legislature granted approval to two bills, Senate Bill 237, sponsored by Sen. Kevin Hertel, D-St. Clair Shores, and House Bill 4906, sponsored by Rep. Joey Andrews, D-St. Joseph. The bills included specific language preventing the Michigan Economic Development Corporation (MEDC) from releasing information about data centers applying for or using the sales and use tax exemption.
Both bills were passed by the Democratic-led Senate and House and signed into law by Gov. Gretchen Whitmer.
“The Democratic majority pushed legislation to allow our state’s tax base to be secretly looted to fund something residents clearly don’t want,” Runestad said. “The disregard is astounding.”
Runestad’s legislation would completely repeal the 2024 reforms and open the door for a significant improvement in transparency surrounding data center proposals and the tax breaks being used or pursued.
The senator stressed the importance of transparency in these types of developments, highlighting a recent Detroit News story outlining the back-room dealings around data centers.
“I think the need for this legislation is quite obvious,” Runestad said. “Residents have made it crystal clear they don’t support data centers popping up in their backyards, and the 2024 reforms paved the way for people being left in the dark until these developments are already well underway.
“We shouldn’t be paying billion-dollar tech conglomerates to farm Michigan for its land, energy, and water. If they want to come here, they need to do it transparently and bring with them benefits for Michigan residents.”
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