MILAM COUNTY, Texas (KRHD) — Milam County commissioners voted this week to approve significant tax incentives for Riot Rockdale to build a new data center, despite concerns from residents and one commissioner about the steep discount.
Watch the full story here:
The commissioners voted almost unanimously to give the company a 75% tax abatement for 10 years, meaning Riot Rockdale will pay only 25% of their property taxes starting in 2028. The payments will be made through a PILOT program — payment in lieu of taxes.
"They were given, you know, a 75% break on taxes for the next 10 years. They're gonna pay 25% now. That's in a form of a pilot payment, payment in lieu of taxes," said Commissioner Wesley Payne of Milam County Precinct 4.
Payne was the only commissioner to vote against the tax breaks.
"They were given the 75%. I thought that was too steep. I'm not against giving an abatement entirely, depending on circumstances, but I'm against that high of an abatement on a data center," Payne said.
Riot Rockdale operates the largest crypto mining facility in North America. The company established its center in 2021 and already has tax breaks for expansion.
Michael Reeves, a property and tax expert, explained that these types of incentives are common for businesses.
"Whether it's a business, personal property or real estate tax breaks where they're basically giving them incentives to build or move the corporate headquarters there into that area," Reeves said.
Local residents expressed mixed feelings about the decision. While they're not opposed to the data center, some want relief for their own tax bills.
"Other communities seem to be pushing these data centers away. Our community seems to be semi-embracing them, giving them some tax breaks," said James Pesl, a local resident.
Pesl raised concerns about the pattern of tax abatements in the county.
"I think that the percentage of some of these abatements are pretty extreme. This county did a slew of abatements when the solar renewable came through. We are now seeing a pattern that we're doing this for the data centers. Tax abatements can be a tool, but they can also become detrimental to the community in which you live," Pesl said.
Commissioner Payne echoed those concerns about helping local taxpayers.
"We should have been a little lower on the percentage to help our citizens out," Payne said.
Riot Rockdale did not respond to requests for comment. However, residents say the company has been a good neighbor in the community.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
