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Turken v. Gordon

Date: August 11, 2011

Arizona Supreme Court

The issue is whether the City of Phoenix’s $97.4 million sales tax incentive given to an out-of-state developer violates the Arizona constitution’s prohibition against tax payer subsidies.  The majority of NFIB members in Arizona do not believe that the government should provide tax incentives to businesses to locate or relocate to a particular city or town. 

Status:  DECIDED.  Amicus brief filed in support of tax payers challenging the subsidy on 1/07/08.  Court dismissed plaintiffs’ lawsuit on 4/2/08.  Amicus brief filed in support of plaintiffs’ appeal to the Arizona Court of Appeals on 7/23/08.  Amicus brief filed in Arizona Supreme Court 7/16/09. The court held that government subsidies to encourage development violate the Gift Clause of the Arizona Constitution unless the developer offers tangible benefits of equal value in return.

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