A bill proposing to divert a portion of local taxes from large developments to the state generated a stir at the Capitol this week. 

Rep. Trey Lamar, chairman of the Ways and Means Committee and the bill’s author, did not bring up the bill in committee before Tuesday’s deadline, letting it die without a vote. But it could signal some leaders are reevaluating the incentives given to the massive data centers sprouting up in Mississippi and across the South and whether the state is getting a good deal.

When asked about why he didn’t bring his bill up, Lamar responded, “stay tuned.” It’s unclear whether he would try to revive the measure this session.

If the proposal in House Bill 1635 were enacted, for projects over $1 billion in investment, 80% of local ad-valorem taxes collected over $1 billion would go into a new state fund, with 20% going to the local government and school district. Money in the new fund would be earmarked for infrastructure and economic development projects across the state. 

Local leaders have pushed back against this proposal. The director of the Madison County Economic Development Authority, Joey Deason, told WLBT that the bill would disincentivize major investments. He also said it would reduce the county’s new tax revenue from the construction of an Amazon data center from $70 million a year to $20 million a year. 

Last year, the Center for Economic Accountability named the Compass Datacenters project in Meridian the country’s “Worst Economic Development Deal of the Year.” The center cited the “breadth and length” of the state and local tax incentives as the primary reason for labeling it a bad deal. 

Data centers remain attractive projects for local leaders and developers. The centers bring in billions of dollars in investment, new tax revenue and create more jobs. But there has been pushback from residents who are concerned about environmental impacts and the lack of transparency. Data centers create relatively few jobs compared to the scale of investment and demand large amounts of power and water. 

Other news: Ag land being bought up, Siemens expanding in Rankin County, hotel and conference center planned for Madison

• A new report from Mississippi State University Extension shows more of the state’s farmland is being bought by real estate and financial institutions. Individuals still make up a majority of transactions. But purchases by financial businesses rose by 5.78% between 2019 and 2023, complicating an already fraught agricultural landscape.
• Siemens Energy is expanding its presence in Mississippi. On Tuesday, the company announced it will build a $300-million manufacturing plant in Rankin County. The project is expected to create almost 300 jobs. The company’s Richland facility has been in operation since the 1970s.
• The developer of Topgolf is planning to build a new luxury hotel and 50,000-square-foot conference center in the Prado Vista development in Madison County. The plan is for a 250-room hotel next to the conference center. The hotel will include four restaurants. The developer, Gabriel Prado, has announced a slew of new projects over the last year. The most recent announcement was a $50-million luxury loft development in Jackson.
• The Golden Triangle Development LINK announced Iain D. Vasey will be its new president and chief executive officer starting March 15. The organization is the economic development arm for Clay, Lowndes and Oktibbeha counties. It gained national recognition for attracting over $10 billion in investment under its previous CEO, Joe Max Higgins. Higgins left abruptly in August reportedly due to workplace behavior. Vasey is an experienced economic developer and was most recently the director of development services for the city of Klamath Falls, Oregon. Previously, he was president and CEO of the Corpus Christi Regional Economic Development, where one of his projects was with Steel Dynamics, who has a presence in the Golden Triangle.