Government Property Lease Excise Tax

We conducted a special audit of the government property lease excise Tax (GPLET) to address whether GPLET, as modified by Laws 2010, Ch. 321, provides a viable revenue stream to counties, cities and towns, community college districts, and school districts (jurisdictions). We found that the changes to the GPLET laws may not increase revenues because most lessees do not pay the increased GPLET rates. In addition, we found that improvements are needed to ensure GPLET is accurately calculated, collected, distributed, and reported to ensure jurisdictions receive all GPLET revenues due to them. Because of limited information, we could not evaluate the effect of GPLET on the development of vacant or underutilized property, on new economic development, and whether slum or blighted areas improved through an abatement of GPLET.