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State finds tax break warrants Arizona Supreme Court action

(Google Maps photo)

PHOENIX — The state attorney general’s review of a Phoenix-area city’s use of tax breaks for two developments found one project did not violate state law, but the other was questionable.

A report by the Arizona Attorney General’s Office said the property-tax break Tempe gave to the developer of the Graduate Hotel adheres to state law. But the city’s tax break for a Bank of the West building may be in violation.

The state began an investigation last month at the request of Republican state Rep. Vince Leach, who raised concerns about Tempe’s use of the government property lease excise tax.

The report raised questions, saying action from the state Supreme Court was warranted.

In a statement Friday, city spokeswoman Nikki Ripley says Tempe’s actions in these two lease agreements were legal.

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