NSA Data Center the Focus of Tax Controversy
Nerval's Lobster writes "Location is everything when choosing the site of a data center. Firms such as Microsoft and Google and Facebook spend a lot of time looking into the costs of land, power, regulation and taxes before placing their respective data centers in a particular place. Sometimes, that local tax bill comes into play in a big way. Just ask the National Security Agency which learned it faces a multimillion-dollar annual state tax on the power consumed by its new data center in Camp Williams, south of Salt Lake City. The Salt Lake Tribune obtained a series of email exchanges between the feds and the state, with the NSA protesting a $2.4 million tax on its annual power expenditure, pegged at about $40 million. Harvey Davis, director of installations and logistics for the NSA, sent a letter (subsequently quoted by the newspaper) to state officials that made the logistics argument: 'Long-term stability in the utility rates was a major factor in Utah being selected as our site for our $1.5bn construction at Camp Williams. HP325 [the new law] runs counter to what we expected.'"
This would be the data center William Binney et al claim is logging almost all domestic communication.
So, the government is going to have to write the government a check?
Yikes.
The power bill went up and they aren't happy about it. A private company would have almost no recourse in a similar situation.
Sig: I stole this sig.
Not a jab at US federal debt, but US states taxing the federal government is basically a no go
Of course there could be complications. Such as, if NSA is leasing space from a contractor who owns the facility, the contractor who's paying for the electricity is going to be taxed, which will be passed on to the NSA
This thing is not too far away as the freeway flies from where I work but I haven't been following the details [ we don't follow the NSA, the NSA follows us ] and of course, IANAL
Wow!
Those sure are some really useful and interesting email addresses and phone numbers!
Thanks, Salt Lake Tribune!
[End Of Line]
Watch the power of this armed and fully operational datacenter-to-protect-your-freedom!
Anyone calculate how many computers this much of a power bill translates into?
I come here for the love
Let the state tax the hell out of the Federal government. Chalk up the NSA's overhead as an unfunded mandate. Oh the irony.
So the NSA had no clue what was going on in tax law? They are kind of the agency that is supposed to know what is going on, were they too busy reading everyone's Facebook pages?
Or everyone should be exempt from a law because they didn't expect it and didn't plan for it (can you say Obamacare?)?
Or the NSA can't imagine who is really going to end up paying this tax bill?
I'm an American. I love this country and the freedoms that we used to have.
So, the government is going to have to write the government a check?
Yikes.
Why is this surprising? Government is not one, homogeneous thing. Here we have a state government indirectly trying to tax an agency of the federal government.
Again, why is this surprising? Look at any corporation of sufficiently large size. Such a corporation would be divided into either departments or business units (each with their own specific budgets). When one renders a service to another, or when two or more need to engage into some type of cross-organizational project, they need to decide how to fund them from their budgets. And if one causes costs to run higher than a certain cap, that one unit has to compensate the others' budgets from its own.
A more tangible scenario in IT is when IT is its own department with its own budget and its own infrastructure. Other departments deploy their systems with them with some specific SLA agreements. Such SLA agreements typically include IT to pay a penalty (from its annual budget) to the other departments whenever that department(s) experience a downtime during core hours (because those "core hours" down times cause said departments to bleed money in terms of lost transactions, idle employee/users time, etc.)
Large organizations (public or otherwise) do not have a universal budgel like a cookie jar where everyone puts his hands on. Budgets get allocated per department or business unit, with money flowing among them when rendering a service or paying a penalty for loss of service.
Watch the NSA now influence the beltway for a pseudo-tax on Utah that happens to recoup the cost of the power. There is no point in taxing the federal government when you operate inside that government.
That'a the first thing I thought, too. This is a very dangerous game Utah is playing. There are a lot of states who suffer tax "losses" because of large government installations which don't pay local and state taxes. Every state in the union gets a lot of money back from the government (to the tune of billions of dollars every year) in all sorts of aid. Getting petty over $2.4M when the government is spending $1.5B to build something that's going to employ a lot of people is dangerous stuff. A company might have to grin and bear it, or spend a bunch to have the legislation fail, but ol' Uncle Sam just might take it out of your hide on the next budget go 'round. They are, after all, looking for ways to save a few tens of billions of dollars a year - it may as well come out of the hide of the state that tried to get a little extra on the side through a round-about deal.
Utah is a welfare state! They already get too much money from the federal government! They now want to take more of our money? WTF?
We should stop subsidizing Utah... and all the other loser states.
Democracy Now! - uncensored, anti-establishment news
It's a sad that I know for a fact there are people in that facility watching this very thread right now and I can't say what I really think about it. That's where we are today. It's not going to get better, it's going to get worse. We can't even appeal to those that are watching us to do what is right and moral, because they were chosen specifically for their psychological predilection to do what they're told. The government of this country is doomed not just because of it's direction but also because the one thing it's excelled at over the years is squashing dissent without appearing to do so. Governments in the rest of the world have to deal with revolutions every so often, but like the forest that's long overdue for a wildfire, this countries going to go up like a torch when it finally does happen.
Utah votes Republican.
Obama is a Democrat.
Utah should align and forge mutual economic and security agreements Hamid Karzai and Afghanistan !
Karzai could perhaps request more cash from the CIA and send the extra booty to Utah !
Although Karzai was 'installed' in Afghanistan by the CIA, Karzai does not love the CIA, Karzai is a Republican as was Saddam Husain.
In many respects the enemy of Afghanistan is the USA ! [thanks for the cash also]
In many respects the enemy of Utah is the USA ! [again thanks for the cash, and we will demand more]
An old Bedouin saying: "the enemy of my enemy is my alley."
Therefore, Utah allies with Afghanistan for the destruction of the enemy !
Calculus is so wonderful is it not.
When did the NSA, or any HSA entity, start paying attention to budgeting? They've been spending like they have blank checks for the last decade.
Seriously, this facility intended to be able to archive everything? Previous plans like this were abandoned due to cost, but not with the current crop of "public employees."
Maybe you should be at a different blog. Or at least sitting at the back of the bus with your mouth shut.
I'd gladly refuse all Federal Aid and earmarks for my state, as long as I could refuse the taxes as well.
Then the blood sucking parasites of society would pack it off to your state to find a new host.
Enjoy
I thought that US government activities have been exempt from state taxation for quite a long time, starting with McCulloch v. Maryland way back in 1819 and affirmed and expanded down to the present day. I can see so many bases on which the NSA, for Jebus' sake, could argue that they live above mere state taxation laws. Any genuine attorneys want to comment?
Plenty of times. Projects at power stations, oil refineries, steelworks and chemical plants for example have very tight windows for downtime so heads roll if the schedule slips.
Projects at power stations, oil refineries, steelworks and chemical plants for example
Those are not R&D projects, they are implementation projects where there is no science left. Three hours for backup, one hour to physically replace the old server, three hours to restore, one hour to test and put online. Everything is known, everything had been practiced before in dry runs, and there are plans B, C and D just in case.
Government projects that (I suspect) were mentioned are blue sky R&D projects. Take, for example, a new fighter airplane. It doesn't exist. How much will it cost to design one? How long? Nobody can tell for sure; it's a "pay as you go" work - and that's how these projects go over budget and over schedule. Some bugs are still haunting F-22, for example - like that oxygen supply system. Seemingly an easy system to build, isn't it? But several pilots are dead because of it. You can plan all you want, but if an essential team member gets hit by a bus you can throw those schedules away. How much time do you need to debug a fault that happens only once in a month, and you strongly suspect that it is caused by unexpected interaction between 120 threads that your system is spawning and joining in real time? Can you predict the date when the bug will be identified and squashed?
A substantial solar array would allow most of the electricity they need for their purposes to come from that, especially if they fed into the grid during the day and only took out during the night. Then you've got to allow for all the alien power sources that the NSA is bound to have got access to at Area 51; but all credit to them: if they hadn't whinged, we might have had additional evidence of those aliens' existence as a result. They are making sure they are covering themselves. ;)
"Dear IRS,
I will not be paying my taxes this year, because the absurd percentage of my hard earned wages that you are requesting runs counter to what I expected.
Sincerely,
X"
How does Mr. Binney know anything? He hasn't worked at NSA since 2001. Where is the solid proof that this facility is involved in domestic collection?
Those are not R&D projects, they are implementation projects where there is no science left.
But you've only asked for engineering projects. I don't know where you live, but when I look around, most engineering projects contracted by the government have nothing to do with any kind of R&D at all.
Ezekiel 23:20
Well, if the NSA wasn't there, apparently doing the very important federal task of snooping on us, there wouldn't be public revenue going to those taxes.
So, the SG wrote a recursive tax law, but because the FG exists it must be the FG's fault?
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
In unrelated news, all Utah state employee bank statements, credit reports, penis and breast enlargement related health records, online dating history and other interesting materials were found posted on 325 websites around the country, along with compromising photos of those concerned presumed to come from their personal email and facebook accounts....
blindly antisocialist = antisocial
Somehow, mysteriously, 3 months from now, we'll see a massive leak of the Utah Governor's browsing history which contains rubber fetish sites and online gambling, and we'll see the Salt Lake City mayor's private emails exposed.
What a great opportunity for the NSA to gain green cred by running its data center on renewable energy, as Apple is doing for at least one of its data centers.
https://en.wikipedia.org/wiki/Small_Business_Innovation_Research
SBIRs have fixed cost - at least in first two phases. Other R&D contracts are often cost plus from day zero; it is absolutely necessary when even the customer doesn't know where the idea will take them.
I'm sure there are government contracts that have nothing to do with R&D but still can be classified as engineering. For example, construction of a new building at a military base. I don't have experience with such jobs.
The funny thing is I was doing a bit of R&D work on remaining life extension of high temperature and pressure pipework during those power station jobs. Hard schedule limits with daily penalties that exceed your entire budget (thousands of MW/h are not cheap and neither is an entire day's worth of production from an oil refinery) just mean you have to limit the design changes to fit.