Assigned to FIN                                                                                                  AS PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1293

GPLET; abatement; limit

Purpose

Limits the revenues that may be abated during the government property lease excise tax (GPLET) abatement period by prohibiting GPLET revenue designated for school districts from being abated.

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 is due annually by December 1 and, within 30 days, the county treasurer must distribute the GPLET in the following amounts to the following taxing jurisdictions in which the government property improvement is located: 1) 13 percent to the county general fund; 2) 7 percent to the city, if applicable; 3) 7 percent to the community college district, if applicable; 4) 73 percent to the applicable school district or districts. 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; 42-6205; and 42-6209).

If prohibiting GPLET revenues designated for school districts from being abated results in a tax shift that affects the obligations of the state, there may be a fiscal impact to the state General Fund.

Provisions

1. Limits, for GPLET development agreements approved by a governing body beginning from and after the general effective date, the GPLET abatement to the amount otherwise designated for counties, cities, towns and community college districts.

2. Prohibits the proportional amount of GPLET revenue designated for school districts from being abated.

3. Makes technical changes.

4. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Makes technical changes.

Senate Action

FIN        2/9/26          DPA        4-3-0

Prepared by Senate Research

February 10, 2026

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