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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
GPLET; agreement posting; abatement period
Purpose
Reduces the maximum lease and abatement period for property subject to the government property lease excise tax (GPLET) from eight years to four years. Outlines posting requirements for GPLET leases, development agreements and reports.
Background
The GPLET allows cities, towns, counties and county stadium districts (government lessors) to lease property to private parties (prime lessees) for commercial, residential rental or industrial purposes for at least 30 days. The GPLET is a local excise tax that is based on a building's square footage and usage and is levied on prime lessees who lease government property improvements. The GPLET may be fully abated by a city or town for a limited period beginning when the certificate of occupancy on the government property is issued and ending eight years after issuance, if the property meets outlined requirements (A.R.S. §§ 42-6201 and 42-6209).
Each government lessor must maintain a public database by county, city and town for all government property leases that are subject to the GPLET, or post its lease agreements on the county, city or town website where the government property improvement is located. By February 15, the county treasurer must submit a report to ADOR of all GPLET returns and payments received for the preceding calendar year (A.R.S. §§ 42-6202 and 42-6204).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Reduces, from eight years to four years, the maximum lease and abatement period for a government property improvement for which GPLET is abated.
2. Requires a government lessor to include any development agreements in the public database or post any development agreements on the applicable county, city or town website.
3. Requires a government lessor to include a lease or an abstract of the lease in the public database within 30 days after entering into the lease for a government property improvement.
4. Requires ADOR to post each county treasurer's annual GPLET report on ADOR's website.
5. Applies the reduced lease and abatement period to agreements entered into beginning January 1, 2025.
6. Makes technical changes.
7. Becomes effective on the general effective date.
House Action
WM 1/24/24 DP 6-4-0-0
3rd Read 2/22/24 31-28-0-0-1
Prepared by Senate Research
March 6, 2024
MG/cs