💡 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

• The City of Tempe owns the property and leases it to a private user.

• The private tenant pays an excise tax based on the property’s size and use, rather than a property tax based on assessed value.

• 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).

• A GPLET lease cannot exceed 25 years.

🏛️ City & County Responsibilities

• The City of Tempe records the lease with the Maricopa County Recorder and reports it to:

  • The County Treasurer, and

  • The Arizona Department of Revenue (ADOR)
    (within 30 days of the lease being signed)

• The City also calculates and levies the GPLET amount.

• The County Treasurer collects payments and distributes funds—most of which go to local school districts.

• 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.):

• [§ 42-6202 – Lease Reporting & Calculation]

• [§ 42-6205 – Distribution of Revenues]

• [§ 42-6209 – Abatement Periods]

"Our mission is to provide quality service to all Tempe taxpayers, and administer the tax code in a fair and equitable manner."