Amy Blankenship
2007-07-25 16:31:53 UTC
http://www.azcentral.com/arizonarepublic/local/articles/0620tax-incentives0620.html
Developers' tax breaks would be curbed in bill
Jessica Coomes
The Arizona Republic
Jun. 20, 2007 12:00 AM
The state Legislature on Tuesday revived a bill that would punish cities
that lure retail developers with tax breaks.
Lawmakers want to discourage municipalities from bidding against one another
to get developments in their boundaries.
The proposal, which was approved by the Senate and House in slightly
different versions, fell off the radar for months and sprung back to life
this week, just as lawmakers are preparing to finish up their work for the
session.
"It stops all the prolific giveaways that have happened in Maricopa County
over the past five years," said Sen. Ken Cheuvront, D-Phoenix, who is
pushing for the legislation.
Lawmakers would have to settle on one version of the bill, work out
difference in a conference committee and get final approval from the
Legislature before the bill heads to Gov. Janet Napolitano.
The most egregious examples of the giveaways have been in Maricopa County,
Cheuvront said, such as the $100 million incentive package Phoenix awarded
this year for the CityNorth development at Loop 101 and 56th Street. That's
why Cheuvront said the legislation should apply only to metro Phoenix, where
neighboring municipalities compete for developments. The area also includes
Pinal County.
In addition to Maricopa and Pinal counties, the House's version of the bill
includes Pima County. Other lawmakers said the bill should apply equally
across the state.
But Senate President Tim Bee, R-Tucson, said it's unnecessary to include
areas outside of Maricopa and Pinal counties in the legislation because
municipalities outside metro Phoenix have not abused tax incentives.
However, Sen. Jay Tibshraeny, R-Chandler, pointed out Oro Valley in Pima
County recently awarded millions of dollars in incentives for a shopping
center, and he argued the bill should apply statewide.
The legislation would allow the state to withhold municipalities'
state-shared revenue in the amount of an incentive they award a retail
developer.
Developers' tax breaks would be curbed in bill
Jessica Coomes
The Arizona Republic
Jun. 20, 2007 12:00 AM
The state Legislature on Tuesday revived a bill that would punish cities
that lure retail developers with tax breaks.
Lawmakers want to discourage municipalities from bidding against one another
to get developments in their boundaries.
The proposal, which was approved by the Senate and House in slightly
different versions, fell off the radar for months and sprung back to life
this week, just as lawmakers are preparing to finish up their work for the
session.
"It stops all the prolific giveaways that have happened in Maricopa County
over the past five years," said Sen. Ken Cheuvront, D-Phoenix, who is
pushing for the legislation.
Lawmakers would have to settle on one version of the bill, work out
difference in a conference committee and get final approval from the
Legislature before the bill heads to Gov. Janet Napolitano.
The most egregious examples of the giveaways have been in Maricopa County,
Cheuvront said, such as the $100 million incentive package Phoenix awarded
this year for the CityNorth development at Loop 101 and 56th Street. That's
why Cheuvront said the legislation should apply only to metro Phoenix, where
neighboring municipalities compete for developments. The area also includes
Pinal County.
In addition to Maricopa and Pinal counties, the House's version of the bill
includes Pima County. Other lawmakers said the bill should apply equally
across the state.
But Senate President Tim Bee, R-Tucson, said it's unnecessary to include
areas outside of Maricopa and Pinal counties in the legislation because
municipalities outside metro Phoenix have not abused tax incentives.
However, Sen. Jay Tibshraeny, R-Chandler, pointed out Oro Valley in Pima
County recently awarded millions of dollars in incentives for a shopping
center, and he argued the bill should apply statewide.
The legislation would allow the state to withhold municipalities'
state-shared revenue in the amount of an incentive they award a retail
developer.