Prince William County Board Adopts ‘Goal’ to Gradually Increase Tax Rates on Data Center Industry

On May 4th, the Board of County Supervisors adopted a ‘goal’ to gradually increase tax rates on the data center industry in Prince William County.

Following the adoption of the FY2022 budget which increased the rate on data centers from $1.35 to $1.50, the Board voted for a multi-year gradual increase which would top out at $2.00 in FY2025.

For FY2023 and FY2024, the rate would increase fifteen cents per year. In FY2025, the rate would increase by twenty cents, bringing it to $2.00 even.

According to Prince William County, the county tax rate on the billion dollar tech industry is the second lowest in the region in FY21.

Locality FY21 Data Center Tax Rate
Arlington $5.00
Alexandria $4.75
Fairfax $4.57
Loudoun $4.20
Fauquier $2.30
Prince William $1.35
Stafford $1.25

Source: Prince William County

Meanwhile, Prince William County’s real estate tax rate on its homeowners remained the second highest in the region even after the gracious one cent reduction offered by the Board majority.

Locality FY22 Real Estate Tax Rate
Fairfax $1.14
Prince William $1.115
Alexandria $1.11
Arlington $1.013
Fauquier $0.994
Loudoun $0.98
Stafford $0.97


Supervisor Vega has long argued for a tax rate on data centers at least half that of our neighbors in Loudoun and for a substantial reduction in the rate on Prince William County homeowners. In March, she proposed a cap on real estate tax rates of $1.05 which would have ensured the average homeowners real estate tax bill would not increase over last year. This proposal was defeated 5-3 along partisan lines.

The gradual ‘goal’ increase to $2.00 in the county’s data center tax rate, if implemented, would maintain the second lowest tax rates on data centers in the region.


– Coles District Staff