Matt Pressberg Argues Data Centers Can Offset Amendment 3 Tax Losses

Florida counties face revenue gaps after Amendment 3

Florida’s county commissioners may soon be forced to search for alternative revenue streams as the impact of Amendment 3 begins to reshape local budgets, according to an opinion piece by Matt Pressberg in the Sun Sentinel.

The amendment, which passed with 62% of the vote, is expected to remove nearly $5 billion annually from local budgets at its inception. This figure is projected to climb toward $12 billion as the policy phases in over time.

The legislative text requires the Florida Legislature to establish procedures for cities and counties to eliminate homestead property taxes entirely. However, the current mandate includes no specific deadline for this transition and names no replacement funding sources.

Pressberg, a public relations consultant, notes that the momentum behind Amendment 3 stems from a widespread revolt among homeowners facing skyrocketing home values and higher tax assessments. Because homeowners vote, local governments face intense pressure to reduce these costs, even if the economic logic of property taxes is questioned by the public.

The data center dilemma

To offset these losses, Pressberg argues that counties should seek a tax base that is both difficult to move and politically neutral. He suggests that data centers represent a prime opportunity, though he contends Florida has spent much of the last year demonizing the industry.

In Palm Beach County, the author points to “Project Tango” as a cautionary tale of failed local engagement. A hyperscale campus proposed near Wellington was met with secrecy and suspicion, leading the county commission to reject the proposal 5-1 and implement a one-year moratorium on new applications.

Pressberg writes that this approach resulted in a “Pyrrhic victory.” In October, county zoning staff approved a request from the landowner to reassign unused rights under a decade-old master plan. This move grew the site’s data center allotment from 200,000 square feet to 698,000 square feet without a public hearing.

“Secrecy on one side and suspicion on the other produced a bigger data center and no leverage for anyone, which is kind of a worst case scenario,” Pressberg wrote.

The author suggests that because no groundwork was laid for a mutually beneficial deal, taxpayers ultimately received a poor outcome.

Lessons from Loudoun County

The Sun Sentinel piece contrasts Florida’s approach with Loudoun County, Virginia. Located outside Washington, D.C., Loudoun has become the world’s largest concentration of data centers by embracing the industry.

Data centers currently provide approximately $1.2 billion annually to Loudoun’s budget, accounting for roughly 38% of its general fund. This revenue has allowed the county to reduce its real estate tax rate by 30% over a decade and cut various vehicle fees while funding essential services like schools, fire rescue, and libraries.

A key distinction in the Loudoun model is the method of taxation. The county generates much of this revenue by taxing the equipment inside the buildings rather than the structures themselves. This is achieved through tangible personal property tax, which applies to business equipment valued at more than $25,000.

According to data from Florida TaxWatch, Florida has high potential. The organization reports that a 500-megawatt campus with a $10 billion investment could generate roughly $150 million a year for an average fiscally constrained, mostly rural county. This amount is more than triple what such a county currently collects in property taxes.

Metric	Loudoun County (VA)	Potential Florida Impact (Per Campus)
Annual Revenue Contribution	$1.2 billion	~$150 million
Primary Tax Driver	Equipment (Tangible Property)	Equipment (Tangible Property)

Pressberg notes that while a campus approved next year would not produce significant equipment tax revenue until the end of the decade, counties should begin the approval process immediately to mitigate Amendment 3’s losses.

New law addresses data center expansion friction

The author acknowledges that the data center industry’s expansion has not been without friction. In Loudoun, residents have expressed anger over transmission lines and large buildings constructed near residential areas under unrecognized LLC names. The county's own budget office has also cautioned against relying too heavily on a single revenue source.

To address these concerns, Pressberg points to a state law that took effect on July 1. This law requires data centers of 50 megawatts or more to cover their own cost of service, preventing utilities from shifting those costs to residential households. The law also mandates water permits and allows counties to maintain the authority to set stricter standards or refuse applications entirely.

The author concludes that rather than rejecting the industry, Florida counties should focus on making data centers “play ball with the public.”