A Washington County commissioner race that will shape data center tax policy is heading to a November runoff, and the outcome could determine whether school districts like Beaverton's keep losing millions to enterprise zone abatements.

Kipperlyn Sinclair, the Hillsboro city councilor who led the push for a 120-day data center moratorium, will face Steve Callaway, the former Hillsboro mayor who presided over the zoning and tax policies that enabled data center growth. Neither topped 50% in the May 19 primary for the District 4 seat on the Washington County Board of Commissioners, triggering the Nov. 3 general election runoff.

District 4 covers Hillsboro, Cornelius, Forest Grove, and surrounding rural land. Beaverton residents do not vote in this race. But the county-level tax abatement and land-use decisions at stake affect all of Washington County, particularly school funding.

Why it matters here

As we reported July 27, the Beaverton School District faces a deficit projected to reach $70 million by 2029, with district leaders linking the shortfall to data center tax abatements that have cost Oregon schools $275 million in a single year.

Washington County Commissioner Nafisa Fai has stated that property tax abatements for data centers total approximately $120 million annually in Washington County alone.

Two candidates, sharply different stances

Sinclair has made data centers the centerpiece of her campaign. She wants a county-wide moratorium, testified in Salem against Senate Bill 1586's proposal to add 1,700 acres of industrial land in Hillsboro, and argues enterprise zone tax breaks were designed for high-density manufacturing jobs, not facilities that consume massive land while employing relatively few workers.

"Hillsboro and Washington County used to be known for our agricultural system," Sinclair said in a July 29 KATU interview, as reported by the Hillsboro Herald. "Now in the era of AI… it's data centers."

Beyond data centers, Sinclair wants to reform System Development Charges from a flat per-unit rate to a per-square-foot basis, arguing an 800-square-foot starter home shouldn't pay the same infrastructure fee as a 4,000-square-foot luxury home.

She is also the founder of Eat Drink Washington County, a nonprofit promoting local farms and small businesses. She raised $9,133 heading into the primary, with support from state lawmakers Khanh Pham and Susan McLain, two Hillsboro city councilors, and several local farms.

Callaway, a former Hillsboro School District principal who served on the city council from 2010 to 2016 before becoming mayor in 2017, has taken a more cautious approach. Asked about the 1,700-acre industrial land proposal during an OregonLive candidate Q&A in May, he said he would need to know the timeline, acreage, allowed uses, and tax policies before deciding.

He outraised Sinclair roughly four-to-one, reporting $42,000 in donations. His backers include a Portland-area realtors' PAC, outgoing Commissioner Jerry Willey, Commissioner Jason Snider, three county mayors, and the Washington County Chamber of Commerce's political arm.

The stakes are real. Callaway's campaign did not respond to a request for comment on the moratorium or his current data center stance.

What's next

The seat is open because incumbent Commissioner Jerry Willey chose not to seek a third term. All District 4 voters will decide the Sinclair-Callaway runoff on Tuesday, Nov. 3.

Meanwhile, the Hillsboro moratorium clock is ticking: the city council and planning commission will hold work sessions during the 120-day pause to review study findings and consider zoning code updates.