After years of court wranglings it looks like the Goldwater Institute shot a big canon across the bow of to cities and towns that chose to use tax dollars to entice business into their jurisdictions.  As you look at this decision ask yourself if it’s OK for your government to pick winners in the market place? Ask if you have enough faith in our political system to allow elected officials to hand over $100m of your tax dollars to a private firm?  Can you think of any potential tax hand overs going on here in Tucson?

Read the article HERE from the Arizona Republic:

A deal that could give nearly $100 million in tax incentives to the Phoenix retail-and-housing development CityNorth can proceed, the Arizona Supreme Court ruled Monday – even though the deal “quite likely” violated the state Constitution.

Though the court allowed the deal, its ruling laid out strict new provisions on tax incentives. Those rules could have a deep impact on future tax-incentive deals, which cities have long used to attract new commercial development and the accompanying sales-tax revenues.

There are implication here in southern Arizona as well.

Here are existing agreements the town of Oro Valley has with developers.

• Oro Valley Marketplace: Vestar Development Co. in Phoenix gets 45 percent – up to $23.2 million – of sales taxes generated at the shopping center.

• Oracle Crossings: B.P. Oracle Crossings Investors LLC gets 46 percent of sales taxes – up to $6.5 million – of sales taxes generated at the shopping center.

• Steam Pump Village: Evergreen-Steam Pump LLC gets 40 percent of sales taxes.

• Hilton Tucson El Conquistador Golf and Tennis Resort gets a rebate of one-third of the town’s 6 percent bed tax.

• The town also has an agreement with Cañada del Oro Partners, whose projects remain undeveloped. Details were not available.

Capitol Media Services’ Howard Fischer contributed to this story.

The state wide impact will be felt. From the Explorer:

Turken v. Gordon has been pursued in the court system by The Goldwater Institute. In prepared remarks Monday, Goldwater litigation director Clint Bolick said the court’s decision “vindicates a core protection of taxpayer rights in our state constitution. The days of rampant corporate welfare in Arizona are coming to an end.”

“The ruling should stop schemes that government concocts to subsidize developers based on grandiose promises that often fail to materialize,” Bolick said. “Although we’re disappointed that the Court allowed the CityNorth deal to stand for now, that development has proved to be such a disaster that it’s doubtful taxpayer money will ever change hands. CityNorth will stand as a monument to government folly.”