City of Tempe, AZ
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GPLET
Government Property Lease Excise Tax
💡 What is GPLET?
The Government Property Lease Excise Tax (GPLET) is a development incentive used by the City of Tempe to encourage new commercial projects.
Created by the State of Arizona in 1996, GPLET allows a temporary replacement of property tax with an excise tax, helping make urban redevelopment more affordable.
🏗️ How It Works
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The City of Tempe owns the property and leases it to a private user.
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The private tenant pays an excise tax based on the property’s size and use, rather than a property tax based on assessed value.
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If the project is located in a designated central business district, the City may waive the tax for up to 8 years starting when a Certificate of Occupancy is issued (A.R.S. 42-6209).
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A GPLET lease cannot exceed 25 years.
🏛️ City & County Responsibilities
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The City of Tempe records the lease with the Maricopa County Recorder and reports it to:
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The County Treasurer, and
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The Arizona Department of Revenue (ADOR)
(within 30 days of the lease being signed)
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The City also calculates and levies the GPLET amount.
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The County Treasurer collects payments and distributes funds—most of which go to local school districts.
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The County Assessor notifies the Department of Education and confirms both ADOR and the Treasurer are aware of new or expired leases.
📚 Reference
Arizona Revised Statutes (A.R.S.):
"Our mission is to provide quality service to all Tempe taxpayers, and administer the tax code in a fair and equitable manner."
| Tempe Tax & License | Office Address | Mailing Address |
| Monday - Friday, 8am - 5pm | City of Tempe | City of Tempe |
| (except City holidays) | Tax and License | Tax and License |
| Phone: 480-350-2955 | 20 E. 6th St., 3rd Floor | P.O. Box 5002 |
| Fax: 480-350-8659 | Tempe, AZ 85281 | Tempe, AZ 85280 |
| salestax@tempe.gov |