The Arizona Supreme Court is being urged to overturn an appeals court ruling that says tax rebates for an upscale Phoenix retail development are unconstitutional.
The Arizona League of Cities and Towns has now joined the city of Phoenix and CityNorth developer Klutznick Co. in asking the high court to overturn the December ruling.
The appeals court found a $97.4 million sales-tax rebate awarded by Phoenix to CityNorth's developer violated a constitutional ban on gifts to corporations.
If the opinion is allowed to stand, it could affect a number of existing and contemplated development agreements around the state.
The conservative Goldwater Institute sued the city and developer over the rebates nearly two years ago, calling them "corporate welfare."
