While I was in Arizona visiting family for Christmas, the citizens of Arizona got an early Christmas present from the courts.  On December 23rd, the Arizona Court of Appeals ruled here that the City of Phoenix’s $97.4 million economic incentive giveaway to the CityNorth mixed use development violated the gift clause of the Arizona Constitution.  The gift clause prohibits governments from granting money or credit to private entities. 

The Goldwater Institute filed the suit on behalf of six small businesses who were harmed by this tax funded gift to their competition.  See the details on the case here. At this time it is unclear if the decision will be appealed.

Tax funded economic incentive giveaways are all to familiar to taxpayers in North Carolina.  Does the Randy Parton Theater ring a bell?  See the JLF reports “Common-Sense TIF Reforms: Ways to Avoid Randy Parton Theater-like Debacles and other Disasters” here and “Debt is Debt: Taxpayers on Hook for TIFs Despite Rhetoric” here.