COLUMBUS, Ohio — At a time when property taxes remain a concern for homeowners across Ohio, state lawmakers are considering whether new data centers should continue receiving significant tax exemptions.
The issue puts two parts of Ohio’s tax system in the spotlight: homeowners who pay property taxes on their homes and large data center projects that can qualify for tax incentives.
House Bill 957, introduced by State Rep. Tristan Rader of Lakewood, would stop Ohio from approving new sales tax exemptions for data centers. The bill was introduced in May and is currently before the House Ways and Means Committee.
Another proposal goes directly to property taxes.
House Bill 999, introduced by State Rep. Daniel Troy of Willowick, would prohibit property tax exemptions for data centers. The legislation was introduced Sept. 2 and has not received a vote.
The amount of money involved has drawn attention.
An analysis by the nonpartisan Ohio Legislative Service Commission reported that the state’s data center sales and use tax exemption represented approximately $1.57 billion in foregone revenue in calendar year 2025.
That does not mean homeowners paid an additional $1.57 billion because of data centers. Sales taxes and property taxes are separate, and there is no evidence establishing that the data center exemption directly caused individual homeowners’ property tax bills to increase.
Still, the proposals are raising a broader question for Ohio communities: which properties should receive tax breaks, and which should pay their full tax obligations?
A graphic published by Axe Ohio Tax lists $26.63 billion in property value under the category of abatements. That number represents property value receiving abatements — not $26.63 billion in unpaid taxes — and the graphic does not identify how much of that property is connected specifically to data centers.
Property tax exemptions are particularly important to the discussion because property taxes help fund local governments, schools and other public services. Unlike Ohio’s state-level data center sales tax incentive, property tax abatements can be granted locally.
Previous legislation considered by lawmakers would have limited new data center property tax abatements to 50% of a project’s increased property value. The Legislative Service Commission said such a change could increase local property tax revenue, while also noting that restricting incentives could affect decisions about future data center investments in Ohio.
For homeowners, neither HB 957 nor HB 999 would automatically reduce a residential property tax bill. The bills instead address whether data centers should continue receiving exemptions from taxes that would otherwise apply to their projects.
Both proposals remain pending, meaning Ohio’s existing tax structure has not been changed by either bill.
Source: Ohio General Assembly; Ohio Legislative Service Commission; WCMH/NBC4 Columbus; Axe Ohio Tax.
