Developing projects in a less taxing environment
by | AZRE
AZRE
While cities and states often rely on multi-year tax incentives to lure economic development, Native Nations and Communities can offer incentives and tax breaks that never expire. For example, in the Ak-Chin Indian Community’s industrial park, Santa Cruz Commerce Center, there are no real property taxes, no taxes on inventories or equipment, and no city or county taxes. Moreover, because Ak-Chin owns its own electric and water/wastewater utilities, energy costs are significantly lower than in nearby cities.
Nonetheless, often a lack of understanding of how tribal lands are managed can preclude Native Nations from being considered in location decisions. It is the unique nature of tribal lands that they are held in trust by the federal government, so an investor cannot buy or sell reservation land. Instead, a developer or business enters into an underlying land lease on which an owner-built, or depending on the tribe, a build-to-suit project can be developed.
