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Utah Set To Exempt NSA Datacenter From Power Tax, After All

Nerval's Lobster writes "They may not all support what the NSA will do with its giant new datacenter in Bluffdale, but Utah officials do seem to agree on the value of having a world-class, $1.5 billion datacenter built in their territory. In general, they're for it, and are proving that by changing a law that would have added about $2.4 million in taxes to the datacenter's power bill—an addition that was an unpleasant surprise to NSA officials when they heard about it in May. A bill signed into law April 1 imposed a tax of up to 6 percent on electricity from Rocky Mountain Power, a requirement the NSA protested in an email to Utah Gov. Gary Herbert April 26. State tax agencies swear they informed the NSA about the impact of the law when it was still under debate; NSA officials denied knowing anything about it and complained that it would make Utah a less attractive site for the datacenter, which was only three to four months from completion at the time."

17 of 86 comments (clear)

  1. Well it figures. by marcello_dl · · Score: 5, Insightful

    State tax agencies swear they informed the NSA about the impact of the law when it was still under debate; NSA officials denied knowing anything about it

    Ladies and gentlemen, here are the guys whose job is information processing for the security of your nation...

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    1. Re:Well it figures. by Anonymous Coward · · Score: 3, Interesting

      Goverment deals are made like this: "Give NSA a break on taxes otherwise those juicy pictures, text and phone files get sent to your spouse."

  2. I know nothing by portwojc · · Score: 5, Funny

    Just to be fair the NSA is denying knowing a lot these days.

    1. Re:I know nothing by UdoKeir · · Score: 3, Funny

      They may also have received the email, but now can't find it.

    2. Re:I know nothing by icebike · · Score: 3, Funny

      TL/DR: maybe they're being sincere when they deny knowing what's going on. Not sure if that would be disturbing or re-assuring, though.

      Oh, come on!! Even YOU don't believe that tripe.

      Director: What do all you guys in this room do?
      Guys: Secret stuff sir. You don't want to know.
      Director: Right, well, I'd like to stay, but its lunch time. Gotta run.
      Guys: kbye!

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  3. "NSA officials denied knowing anything about it" by harvestsun · · Score: 5, Insightful

    Well there's one we haven't heard before.

  4. Even the government by sumdumass · · Score: 3, Insightful

    Even the federal government is looking at tax rates and making location decisions based around them. I suppose this makes a little sense to those who understand business and how they operate, but I bet it blows the mind of those who think it is a crime to subsidies business or that government can just print money and pay out the nose for their crap.

  5. 3 or 4 months from completition by schneidafunk · · Score: 5, Insightful

    They may be protesting, but don't be fooled into thinking they were going to move the billion dollar facility because of a $3 million tax. Utah should keep the tax money.

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    Some people die at 25 and aren't buried until 75. -Benjamin Franklin
    1. Re:3 or 4 months from completition by Bucc5062 · · Score: 4, Interesting

      There you go. Why back down when it was close to completion. Sure, adjust it later, but the NSA had to have some mojo on Utah politicians to get thm to change a tax law they all voted for.

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      Life is a great ride, the vehicle doesn't matter
  6. Does this avoid making power usage public ? by Anonymous Coward · · Score: 5, Interesting

    Dont know much how the taxes are calculated. But, does avoid having to pay taxes also help remove the power consumption data from being public ?

  7. Re:Irony by daremonai · · Score: 5, Insightful

    The problem is, the state officials talked about it publicly. If they had just whispered it to each other in private cell phone conversations, the NSA might have paid attention.

  8. only three to four months from completion by frovingslosh · · Score: 3, Informative

    Yea. we didn't know about it. We were too busy reading everyone's emails. Ignorance of the law is our excuse. Give us a tax break, which simply means that the average citizens pay more than the people who spy on them. The irony here is that they were only 3-4 months from completion, "AT THE TIME" and are less now. So it wasn't like they were going to leave the state, walk away from all of the money already spent, and let the citizens go without someone to spy on them. They would have paid the tax, they just didn't like it. Glad to know that everyone else there must like it. I guess the Utah state constitution doesn't have any sort of equal protection clause that would prevent giving this unfair treatment to some but not to others (mine does, but it is ignored when inconvenient).

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    I'm an American. I love this country and the freedoms that we used to have.
    1. Re:only three to four months from completion by Common+Joe · · Score: 3, Interesting

      They would have paid the tax, they just didn't like it. Glad to know that everyone else there must like it. I guess the Utah state constitution doesn't have any sort of equal protection clause that would prevent giving this unfair treatment to some but not to others (mine does, but it is ignored when inconvenient).

      You know, I'm glad you said this because I don't see if said often. Different taxes for different entities blows my mind on a regular basis. People think giving large corporations (or in this case, large government) special tax breaks is a good thing. If cutting taxes are so good, why don't they do it across the board? Or, conversely, if raising taxes are so good, why don't they do it across the board? In other words, if the idea is good for one entity, it must be good for every entity or business. Why should my wife (who ran a business of just one person for a number of years) be treated any different from these guys or Amazon? Just treat everyone the same. Less waste of time, paperwork, and resources than making exceptions for here and there too.

      I get politics, but it frustrates the hell out of me most days.

  9. Re:Regarding this story: by icebike · · Score: 3, Insightful

    What is it going to accomplish? Are ye Daft?

    It accomplishes exactly what any tax does. You were expecting the Feds to pick up and move their data center?

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  10. When Rocky Mountain Power ... by PPH · · Score: 3, Funny

    ... forgets to enter this exception into their CICS system and the NSA is in arrears $2.4 mill, I want to be the lineman handling the disconnect notice.

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    Have gnu, will travel.
  11. Re:Regarding this story: by Mitchell314 · · Score: 4, Insightful

    It generates government revenue, paid for by government revenue plus overhead. So . . .

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    I read TFA and all I got was this lousy cookie
  12. Re:Regarding this story: by icebike · · Score: 4, Informative

    Sigh.....

    The State of Utah would get far more in tax revenue from the feds if it could tax the power this site is going to use.

    Some of that tax money would be paid by Utah citizens via their Federal Income tax, but the overwhelmingly vast majority of it would come from the rest of the US tax payers in other states.

    As it stands now, Utah tax payers are going to have to pick up the slack for the free-loading federal government.

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