City’s tax incentives under investigation
TEMPE, Ariz. (AP) — A Phoenix-area city’s use of tax breaks on two local developments is under investigation.
The Arizona Republic reports Republican State Rep. Vince Leach has asked the Arizona Attorney General Mark Brnovich to investigate Tempe’s agreement with hotel Graduate Tempe and a Bank of the West office building.
Leach’s concerns revolve around the city’s use of tax incentives called government property lease excise tax, or GPLET.
GPLET allows cities, towns, counties and county stadium districts to lease property they own to private parties and collect a lease excise tax since property taxes aren’t levied against government-owned property.
Leach contends Tempe is charging the two developments too low a tax rate.
If the city is found in violation and it’s not addressed, the state could withhold funds until the problem is resolved.
Information from: The Arizona Republic, http://www.azcentral.com