I am introducing legislation to require that any increase in property tax revenue attributable to the construction of a new data center within a school district be used exclusively to fund additional Homestead/Farmstead property tax relief for district residents. The measure ensures that while data centers may place increased demands on local infrastructure and land use, the financial benefits are shared directly with the community.

Pennsylvania has become an increasingly attractive location for data centers due to its energy infrastructure, available land, and proximity to major markets. While data centers can substantially increase a school district’s tax base, they can place strains on local resources.

The Homestead/Farmstead exclusion is an established and effective mechanism for providing direct property tax relief to owner-occupied homes and farms. This legislation builds on that framework by dedicating new, data center–generated tax revenue to reducing the tax burden on local residents rather than allowing it to be absorbed into general spending.

This legislation would be revenue-neutral to school districts. It does not reduce existing revenues, but rather directs new property tax revenue resulting from data center construction toward property tax relief. Homeowners and farmers would see reduced school property tax bills, while school districts would not experience a loss of current funding.

This legislation ensures that the financial benefits of data center development flow directly to the people who live in the affected communities. I respectfully request your support and co-sponsorship of this bill.