Phoenix Mart project in Casa Grande: Ancillary advantages

The 1.5-million-square-foot Phoenix Mart showroom project proposed on the east side of Casa Grande won’t bring in a lot of city sales tax itself, but the levy from hotels, restaurants and other businesses should grow, the city’s senior management analyst says. The developers would pay construction sales tax on the $150 million initial operation and negotiations continue on how much in impact fees they will be charged by the city. Asked about general sales tax, Richard Wilkie said, “From the wholesale part of it, no. Wholesale is exempt from the sales tax. It’s an international business-to-business sourcing center, so the vast majority of what their business calls for is being wholesale.” There may be some vendors willing to sell displayed items at retail, Wilkie said, in which case city sales tax would be added. “They’ll be doing some trade shows,” he continued. “I’m sure there will be vendors there that will sell things, and that will be sales tax.” Many future sales at Phoenix Mart are expected to be ordered over the Internet where sales tax is generally not charged unless there is a company presence in the state.

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