Board approves placing business-license tax measure on Nov. ballot to charge data centers $5 per square foot

The Solano County Board of Supervisors voted unanimously on July 28 to place a business-license tax measure on the November 3, 2026 ballot that would: modernize and expand the county’s business-license tax structure for commercial energy production, resource extraction and data centers; and increase certain tax rates. Staff recommended a gross floor-area approach for data centers and proposed raising the proposed rate to $5 per square foot of gross floor area.

Planner/County staff explained why a gross floor-area base is administrable and comparable to a utility-user-tax (UUT) benchmark. Staff's analysis used a 77-megawatt / ~400,000-square-foot example to estimate about $2,000,000 in revenue for a single large facility at the $5/sq ft rate. Board members described the measure as a backstop designed to create a local revenue stream and disincentive if large data centers or other energy projects come forward — and as an interim tool because state action can limit local control in some energy siting contexts.

Public comment was strongly divided: several callers urged a harder line (moratoriums or bans) and higher taxes, while others recommended more aggressive local protections. Staff confirmed that the ballot language and detail would be finalized by county counsel and the registrar of voters following the board’s adoption of the resolution. The board approved the resolution and delegated authority to the registrar of voters, county administrator and county counsel to place the measure on the ballot and handle technical steps.