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Incentives

cont. Local Incentives

Redevelopment District

In 2008 the City of Maricopa established a redevelopment district in the City of Maricopa. A Redevelopment District requires a plan that lays out broad goals and guidelines for the area to be revitalized. State statutes provide an outline of material to be included in the plan. In some redevelopment districts, the GPLET (see below) can be abated for the first eight years after the certificate of occupancy. For more information including district boundaries and the approved Plan, visit the Redevelopment District Plan section of this Website.

Development Agreements

Development agreements generally give some type of benefit to the developer, such as a repayment for public infrastructure improvements through sales tax rebates. Arizona municipalities are restricted to providing only tax incentives consisting of reimbursements for public infrastructure and may not exceed or otherwise be disproportionate to the actual cost incurred. Maricopa has in the past entered into development agreements, and is willing to explore this option with any business bringing a high level of economic benefit to the community.

Government Property Lease Excise Tax Program

This program has been established by the State of Arizona and is available to businesses that lease parcels from a municipality rather than own them outright. All real property tax has been waived and replaced with an excise tax that is an established rate per square foot and based upon the type of use. The rate is reduced every ten years by 20% until it reaches the 51st year, when the tax drops to zero. In some redevelopment districts, the excise tax can be abated for the first eight years after the certificate of occupancy. If a municipality is a property owner, this creates a huge incentive for a company to occupy the facility, or allows them the cash flow to perform improvements. Any business or entity occupying a facility on property owned by the municipality (the building may be owned by the private entity, but land on which it sits must be leased from a city). The program typically is used to spur development and redevelopment in downtown areas.