Arizona Supreme Court strikes down tax deals

From Judgepedia

January 27, 2010

Arizona: The Arizona Supreme Court ruled on Monday, January 25, that economic development agreements that involve collected sales tax being rebated to private companies are in violation of the state's constitution. The ruling came based a violation of the constitution's gift clause that says that the gift "must have both a public purpose and must provide sufficient consideration to the public." The ruling, however, will not be retro active, meaning it is possible that businesses currently engaged in such deals will receive "owed" funds anyways.^[1]

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