A Tool for Redevelopment

The State of Arizona established the Government Property Lease Excise Tax (GPLET) as a tool to initiate development by reducing the operating costs of a project by substituting an excise tax in place of real property tax. The state statute establishes an excise tax for the building type of use and is calculated on the gross square feet of the building.

Currently state law dictates that excise tax does not continue for more than 25 years and requires that the land and improvements made to the land be conveyed to a government entity and leased back for private use. Properties located within a Central Business District and Redevelopment area are eligible for abatement of the excise tax for the first 8 years after the certificate of occupancy of the building is issued.

When utilizing GPLET, the City requires developers to adhere to the specific council-adopted policies before applying for development assistance. Click on the links below to review city polices:

- Policy for properties within the Central Business District (CBD) and a Redevelopment Area (RDA)

- Policy for properties within a Redevelopment Area (RDA) only