Legal Alert: GPLET Legislative Changes
Legislative Changes to Government Property Lease Excise Tax (GPLET) Require Quick Action on Proposed Development
House Bill 2504 (the "Legislation"), which was adopted by the Arizona Legislature on April 29, 2010, and transmitted to Governor Jan Brewer on April 30, 2010, will modify the existing GPLET taxing structure of real property improvements. It is anticipated that Governor Brewer will not veto the Legislation and, therefore, the Legislation will become effective on July 28, 2010. The net effect of this Legislation is that it will significantly reduce the value of the GPLET structure for both governmental entities that want to facilitate economic development and the developers of any such Property. In order to benefit from the current (often referred to in this alert as the "prior") GPLET benefits, certain action must be taken before June 1, 2010.
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