Twenty-four of the Texas Senate's 31 members have signed on to a bill that would end the state sales tax breaks for data centers, including both senators who represent Prosper.
Senate Bill 293 was filed Monday, the first day of bill filing for the 2027 session, by Sen. Joan Huffman of District 17.
Its 23 co-authors include Sen. Angela Paxton, whose District 8 covers about 79% of Prosper, and Sen. Brent Hagenbuch, whose District 30 covers the rest, according to the bill's history on the Legislature's website and the redistricting council's population report for the current Senate map.
What it would repeal
Texas now exempts qualifying data centers and large data center projects certified by the state comptroller from sales and use taxes on equipment and on the electricity they use to process, store and distribute data.
SB 293 would strike the two Tax Code sections that create those programs, a related section elsewhere in the Tax Code, and the line in the electricity exemption that covers data center use.
The bill does not phase the breaks out. Any exemption a data center holds would expire on the day the law takes effect, and applications still pending with the comptroller that day would be treated as denied.
It would take effect immediately if two-thirds of each chamber vote for it; otherwise it would start Sept. 1, 2027. The list of 24 senators already exceeds two-thirds of the Senate, though co-authorship is not a vote and the House would also have to act.
