PHOENIX — The Arizona Commerce Authority wants a judge to rule there’s nothing unconstitutional about giving away up to $125 million in state tax credits a year to lure filmmakers to the state.
The authority is using the credits to boost production of films and commercials here.
Of note, the credits are refundable. Put simply, a company can get a check from the state if the amount of credits it earns exceeds the taxes it owes.
“Tombstone,” the 1993 movie starring Val Kilmer, Sam Elliott, Kurt Russell and Bill Paxton, was filmed in various Southern Arizona locations. The Arizona Commerce Authority hopes to revive the once-thriving film industry here.
In new court filings, authority attorney Andrew Pappas asks a Maricopa County judge to rule that none of that runs afoul of the Gift Clause of the Arizona Constitution. That clause makes it illegal for the state to pay more for something than the benefit it gets in return, and the Goldwater Institute has sued on behalf of two taxpayers to end the tax credits for filming.
Pappas, however, said the Gift Clause doesn’t apply here.
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Actor Paul Newman has his photo taken by his wife and accomplished actor, Joanne Woodward, during a break in filming of “Hombre” at Old Tucson Studios in 1966. Newman would return to Old Tucson in 1971 to film “The Life and Times of Judge Roy Bean.” More recently, however, producers have been going to other states to film instead of Arizona.
In essence, he is telling Superior Court Judge Michael Herrod that the constitutional prohibition applies only when the state gives away something it has in grants or subsidies.
“But before the state can give funds, it must first own them,’’ Pappas wrote. “And because the state does not own the future taxable income of its citizenry, the state cannot give those funds away.’’
To rule otherwise, he said, would require a finding that all future taxable income belongs to the state, meaning that, in foregoing any future tax revenues, the state has provided someone with a gift.
“That conclusion would be legally, practically, and conceptually untenable,’’ Pappas said.
The dispute could determine whether Arizona gets to compete with other states, including New Mexico and Georgia, which have been aggressive in convincing producers to film there. The credits and other special offers they provide bring in not just the outside money but also help support those who own and operate studios there.
Central to the issue in Arizona is a 2022 law championed by Sen. David Gowan, a Sierra Vista Republican, who said he wanted to revive what was once a thriving film industry here.
In the 1930s, John Ford saw Monument Valley and decided to film Stagecoach there with John Wayne. And the studios at Old Tucson were for a long time the site of various Westerns, ranging from The Lone Ranger to Three Amigos, before much of the facility was destroyed in a 1994 fire.
Actor Clint Eastwood talks with director John Sturges during filming of the movie “Joe Kidd” at Old Tucson Studios on Dec. 2, 1971. Today, a court case is playing out on whether it’s unconstitutional for Arizona to give up to $125 million in state tax credits a year to lure filmmakers to the state.
Since then, producers are going elsewhere to film. Even movies about events in Arizona were shot elsewhere, including “Only the Brave,’’ about the deaths of 19 Granite Mountain Hotshots fighting the 2013 Yarnell Hill Fire, which was filmed in New Mexico.
Supporters of the credits say they will bring more production to Arizona by making it more financially attractive.
The legal issue is the Gift Clause. The Arizona Supreme Court has ruled it requires that payments of state funds cannot exceed the benefit the state gets.
Here, challengers say, there is no way the state generates that much in direct revenues.
In defending the law, and the credits, Pappas does not seek to do the math of whether the state gets back as much as it is giving up. Instead, he is arguing there’s no legal basis for the lawsuit in the first place.
He said the wording of the Gift Clause says no state or local government “shall ever give or loan its credit in the aid of, or make a donation by grant, by subsidy or otherwise, to any individual, association, or corporation.’’
“It does not mention tax credits,’’ Pappas is telling the judge.
If Herrod isn’t buying that argument, he has others. One is his claim that this is none of the court’s business.
“The constitution assigns tax policymaking to the Legislature, not the courts,’’ Pappas wrote. “And the same framers who adopted the Gift Clause also provided the Legislature broad discretion in enacting tax exemptions, including those for private corporations.’’
He also said chaos would result if the tax credits for film producers were overturned, saying it would open the door to challenges to all sorts of other tax credits as well as deductions and exemptions in state law.
Consider, he said, tax credits now available for donations to organizations that provide scholarships for students to attend private and parochial schools.
It also could bring into question the decisions by lawmakers of what to tax and what to exempt, Pappas said.
For example, individuals pay sales taxes on most retail purchases. But the Legislature has decided there’s no such levy on legal services. And individuals can deduct medical expenses when computing their state income tax liability but not personal travel.
Finally, Pappas claims that the two individual plaintiffs the Goldwater Institute is representing have no legal right to sue.
He said taxpayers can go to court only to challenge government expenditures and appropriations.
“Tax credits are neither,’’ Pappas said. He said the plaintiffs also fail to show any “specific and concrete injury’’ from the tax credits — a general requirement for people to sue — but instead only “a generalized and hypothetical pecuniary harm.’’
No date has been set for a hearing.
List: 40 movies filmed in Tucson and southern Arizona
The Fabelmans (2022)
This image released by Universal Pictures and Amblin Entertainment shows Gabriel LaBelle in a scene from "The Fabelmans."
Tucson locations: Tucson Mountain Park and the Sonoran Desert
Cast: Michelle Williams, Gabriel LaBelle, Paul Dano, Judd Hirsch, Seth Rogen
Genre: Drama: Growing up in post-World War II era Arizona, young Sammy Fabelman aspires to become a filmmaker.
Tombstone (1993)
Kurt Russell stars as Wyatt Earp in "Tombstone" filmed at Old Tucson Studios in 1993. Copy photo taken at Quality Inn Flamingo in Tucson, Ariz., on Thursday March 31, 2011.
Tucson and Arizona locations: Old Tucson, Babocomari Ranch in Sonoita, Texas Canyon, Little Dragoon Mountains, Skeleton Canyon, Empire Ranch in Sonoita, Elgin, Sonoran Desert, Chiricahua National Monument, San Simon Valley, Mescal, Tucson Mountains, San Pedro River, Las Cienegas National Conservation Area, Patagonia, Whetstone Mountains, Turkey Creek, Mount Lemmon, Fort Crittenden, Tucson, Harshaw, St. David, Granite Mountains in Prescott, Sierrita Mountains, Benson.
According to the Internet Movie Database, Tombstone was not a location for the movie shoot.
Cast: Kurt Russell, Val Kilmer, Sam Elliott, Bill Paxton
Genre: Biography, drama, history: A dramatic retelling of the events leading to and following the famous Gunfight at the OK Corral.
Box office gross: $56.51 million
Almost Famous (2000)
Amost Famous
Tucson and Arizona locations: Old Ajo Highway, Tumacácori, Interstate 19, Amado, Tucson
Cast: Billy Crudup, Patrick Fugit, Kate Hudson
Genre: Adventure, comedy, drama: A high schooler travels with a rock band for a story in Rolling Stone magazine.
Box office gross: $32.53 million
A Star is Born (1976)
In this Dec. 23, 1976, file photo, producer Jon Peters, from left, Barbra Streisand and Kris Kristofferson appear at a preview of the film "A Star is Born" in New York. (AP Photo/Suzanne Vlamis)
Tucson and Arizona locations: Tucson Convention Center, Pima County Courthouse, Old Tucson Studios, Sonoita and Tempe.
Cast: Barbra Streisand, Kris Kristofferson, Gary Busey, Oliver Clark
Genre: Drama, romance, musical: A has-been rock star falls in love with a young, up-and-coming songstress.
Box office gross: $80 million
Major League (1989)
The north side of Hi Corbett Field, 700 S. Randolph Way., in Tucson, Ariz. on January 23, 2020.
Tucson locations: Hi Corbett Field, Tucson
Cast: Tom Berenger, Charlie Sheen, Corbin Bernsen, Margaret Whitton
Genre: Comedy, sport: The new owner of the Cleveland Indians puts together a team she hopes will lose so she can move the team. The team disagrees.
Box office gross: $49.8 million
Transformers: Revenge of the Fallen (2009)
Rows of B-52's sit on the hard desert soil in Tucson, Arizona. The dry air and hard soil are the two main reasons the "Boneyard" is located here.
Tucson location: Davis Monthan Air Force Base, Boneyard
Cast: Shia LaBeouf, Megan Fox, Josh Duhamel, Tyrese Gibson
Genre: Action, adventure Sci-fi: The Autobots and Decepticons battle in this sequel.
Box office gross: $402.11 million
Wild Wild West (1999)
Will Smith in a scene from the movie "Wild Wild West."
Tucson location: Old Tucson
Cast: Will Smith, Kevin Kline, Kenneth Branagh, Salma Hayek
Genre: Action, comedy sci-fi: Based on the old TV show of Secret Service agents after the Civil War.
Box office gross: $113.81 million
Public Enemies (2009)
Johnny Depp stars as legendary Depression-era outlaw John Dillinger, in "Public Enemies." (AP Photo/Universal Pictures, Peter Mountain)
Tucson location: Congress Hotel front
Cast: Christian Bale, Johnny Depp, Christian Stolte, Jason Clarke
Genre: Action, biography, crime: Feds try to take down John Dillinger.
Box office gross: $97.1 million
Can't Buy Me Love (1987)
Patrick Dempsey (in his pre-“McDreamy” era) stars as a high school nerd trying to be a cool kid in “Can’t Buy Me Love.”
Tucson locations: Davis-Monthan Air Force Base boneyard, Scoops on Speedway, a house on North Hill Farm Drive, a house on North Christmas Avenue, The Loft Cinema, Pima Air and Space Museum, Tucson High School, Tucson Mall, Arcade on Speedway, Speedway boulevard, Winterhaven neighborhood, Hill Farm
Cast: Patrick Dempsey, Amanda Peterson, Courtney Gains
Genre: Comedy, drama, romance: An outcast pays the most popular girl in school to be his girlfriend for a month.
Box office gross: $31.62 million
Young Guns (1988)
Main Street in Old Tucson in 1991.
Tucson locations: Old Tucson, Tucson, Sonoran Desert
Cast: Emilio Estevez, Kiefer Sutherland, Lou Diamond Phillips, Charlie Sheen
Genre: Action, western: Young gunmen led by Billy the Kid become deputies and take their authority too far.
Box office gross: $45.66 million
Young Guns II (1990)
Tucson and Arizona locations: Old Tucson, Bisbee, Sonoran Desert, San Rafael Ranch State Park in Patagonia, Tucson Mountains, Ironwood Forest National Monument, Sierrita Mountains, Warren, Tumacácori National Historical Park
Cast: Emilio Estevez, Kiefer Sutherland, Lou Diamond Phillips, Christian Slater
Genre: Action, western: Patrick Floyd Garrett receives a bounty to kill Billy the Kid.
Box office gross: $44.14 million
Revenge of the Nerds (1984)
Actors Anthony Edwards, far right and Robert Carradine, center, stumble with their suitcases during a scene for the film, "Revenge of the Nerds." Photo taken: January 30, 1984.
Tucson locations: Catalina Park Inn, Catalina Park, Bear Down Gym at the University of Arizona, Friends Meeting House on Fifth Avenue, University of Arizona, Cochise Hall at UA, Old Main at UA, Scottish Rite Temple on Scott Avenue, Old Tucson
Cast: Robert Carradine, Anthony Edwards, Timothy Busfield, Andrew Cassese
Genre: Comedy: A group of bullied college outcasts and misfits fight back.
Box office gross: $40.9 million
The Quick and the Dead (1995)
Extras for the movie "The Quick and the Dead," during filming at the Mescal Exit 297.
Tucson and Arizona locations: Old Tucson, Mescal, Sierrita Mountains, Sonoran Desert, Tucson Mountains, Ironwood Forest National Monument, Sonoita, Las Cienegas National Conservation Area
Cast: Sharon Stone, Gene Hackman, Russell Crowe
Genre: Action, romance, thriller: A female gunfighter enters a dueling tournament to avenge her father's death.
Box office gross: $18.64 million
Romy and Michele's High School Reunion (1997)
Lisa Kudrow and Mira Sorvino in a scene from Romy and Michele's High School Reunion.
Tucson locations: Tucson streets
Cast: Mira Sorvino, Lisa Kudrow, Janeane Carofalo
Genre: Comedy: Two dimwitted friends concoct an elaborate lie to impress classmates at their high school reunion.
Box office gross: $29.21 million
Stir Crazy (1980)
"Stir Crazy" filming at the Tucson Rodeo Grounds April 10, 1980. Citizen file photo by H. Darr Beiser.
Tucson locations: Downtown, Tucson Rodeo Grounds, Pima Community College West Campus, former Whistle Stop bar on Craycroft Road, Pima County Courthouse; other Arizona locations: Arizona State Prison in Florence, Arizona
Cast: Gene Wilder, Richard Pryor, Georg Stanford Brown, JoBeth Williams
Genre: Comedy: Two friends are set up and wrongfully accused of a crime they didn't commit.
Box office gross: $101.3 million
The Trial of Billy Jack (1974)
Tucson locations: Old Tucson Studios and Colossal Cave Mountain Park
Cast: Tom Laughlin, Delores Taylor, Victor Izay, Teresa Kelly
Genre: Action, drama
Box office gross: $89 million
Movie sets at Old Tucson in 2012.
The Cannonball Run (1981)
Tucson location: Old Tucson
Cast: Burt Reynolds, Roger Moore, Farrah Fawcett, Dom DeLuise
Genre: Action, comedy: Eccentric competitors participate in a cross-country road race.
Box office gross: $72.18 million
A scene from the movie, "Three Kings." (AP Photo/Warner Bros., Murray Close)
Three Kings (1999)
Arizona locations: Tucson, Casa Grande. Sacaton Mine in Casa Grande, Yuma, Eloy, Sonoran Desert, Coolidge, Marana, Phoenix
Cast: George Clooney, Mark Wahlberg, Ice Cube, Spike Jonze
Genre: Action, adventure, comedy: After the Persian Gulf War, four soldiers plan to steal gold that was stolen from Kuwait.
Box office gross: $60.65 million
The Postman (1997)
Release date: Dec. 25, 1997
Tucson and Arizona locations: Tucson, Sahuarita, Green Valley, Sopori Ranch, Amado and Nogales
Cast: Kevin Costner, Will Patton, Larenz Tate, Olivia Williams
Genre: Action, adventure, sci-fi: In post-apocalyptic America in the year 2013, an unnamed wanderer retrieves a postman's uniform and undelivered bag of mail, which he delivers to a nearby town
Box office gross: $17.6 million
Rene Russo, Don Johnson and Kevin Costner star in "Tin Cup."
Tin Cup (1996)
Tucson and Arizona locations: Hotel Congress, Tubac, Sonoita, Nogales.
Cast: Kevin Costner, Rene Russo, Don Johnson, Cheech Marin
Genre: Comedy, drama, romance: A washed up golf pro tries to qualify for the US Open.
Box office gross: $53.85 million
In this undated photo released by Disney, John Voight, left, portraying Kentucky coach Adolph Rupp, shakes hands with Josh Lucas, right, playing Texas Western coach Don Haskins in a scene from the motion picture "Glory Road." (AP Photo/Disney Enterprises, Inc., Frank Connor)
Glory Road (2006)
Tucson location: Bear Down Gym at the University of Arizona
Cast: Josh Lucas, Derek Luke, Austin Nichols, Jon Voight
Genre: Biography, drama, sport: Texas Western coach leads the first all-black starting line-up college basketball team to the NCAA championship.
Box office gross: $42.64 million
Chevy Chase, Steve Martin, and Martin Short in The Three Amigos.
Three Amigos (1986)
Tucson and Arizona locations: Old Tucson, Coronado National Forest, Florence, Apache Junction, Superstition Mountains, Apache Trail, Superstition Wilderness, Sonoran Desert, Gold Canyon
Cast: Steve Martin, Checy Chase, Martin Short
Genre: Comedy, western: Three actors go to a Mexican village to perform their onscreen roles unaware they are in a real fight.
Box office gross: $39.25 million
The cast and producer of Tyler Perry's feature "The Family That Preys." (PRNewsFoto/Lincoln Mercury)
The Family That Preys (2008)
Tucson and Arizona locations: Tucson, Sonoita
Cast: Kathy Bates, Alfre Woodard, Sanaa Lathan
Genre: Drama: Two families from different walks of life learn to work together.
Box office gross: $37.02 million
Murphy's Romance (1985)
Tucson and Arizona locations: Tucson (street scenes), Florence, Tubac, Keating Building in Florence, Eloy, Coolidge, Main Street Vault in Florence, Valley Art Theater in Tempe, Tempe, Main Street in Florence
Cast: Sally Field, James Garner, Brian Kerwin
Genre: Comedy, drama, romance: A divorcee and her son move to a ranch and she befriends a local man.
Box office gross: $30.76 million
Sammy Davis JR, and Dean Martin are cornered by mobsters (L to R) Alex Rocco, Michael Gazzo, Abe Vigoda and Henry Silva, all after the million-dollar purse offered for Cannonball Run II. Photo by Arcafin V.V./Claridge Pictures Inc.
Cannonball Run II (1984)
Tucson and Arizona locations: Tucson, Bisbee, Old Tucson, Arizona State School for the Deaf and the Blind Campus
Cast: Burt Reynolds, Dom DeLuise, Dean Martin
Genre: Action, comedy: This sequel features another cross country race.
Box office gross: $28.08 million
The Fox Theater on 17 W. Congress, Wed April 25, 2012.
Escape from New York (1981)
Tucson location: Fox Theater
Cast: Kurt Russell, Lee Van Cleef, Ernest Borgnine
Genre: Action, adventure, sci-fi: Manhattan is now a maximum security prison and the U.S. president has crashed into it.
Box office gross: $25.24 million
Holly (Drew Barrymore, left) introduces Jane (Whoopi Goldberg) to her new boyfiend, Abe (Matthew McConaughey, in Warner Bros.' "Boys on the Side." Photo by Suzanne Hanover
Boys on the Side (1995)
Tucson and Arizona locations: Tucson, Tumacácori, Teatro Carmen, Elusian Grove Market in Barrio Viejo, Tucson General Hospital (since demolished), Big Horn Restaurant in Amado, Tucson Elks Lodge, Amado
Cast: Whoopi Goldberg, Mary-Louise Parker, Drew Barrymore, Matthew McConaughey
Genre: Comedy, drama: Three very different women drive cross country and become close friends.
Box office gross: $23.45 million
Madhouse (1990)
Tucson and Arizona locations: Tucson, Phoenix
Cast: Richard Alexander, Kirstie Alley, John Larroquette
Genre: Comedy: A yuppie couple's villa is overrun by uninvited guests.
Box office gross: $21.04 million
8 Seconds (1994)
Tucson location: Tucson Rodeo Grounds, other Tucson locations
Cast: Luke Perry, Stephen Baldwin, James Rebhorn
Genre: Biography, drama, sport: The life of Lane Frost, 1987 PRCA Bull Riding World Champion.
Box office gross: $19.6 million
Wes Studi stars as Geronimo, the legendary Apache leader and medicine man who defied the U.S. Cavalry.
Geronimo: An American Legend (1993)
Tucson and Arizona locations: Old Tucson, Monument Valley, Kayenta, Red Mesa, Kaibab National Forest, Williams (Grand Canyon Railway), Mexican Water, San Francisco Peaks, Skeleton Canyon, Teec Nos Pos, Tucson
Cast: Jason Patric, Gene Hackman, Robert Duvall
Genre: Drama, history, western: The story of the Apache chief and his resistance to the U.S. Government's subjugation of his people.
Box office gross: $18.64 million
Kirk Douglas shows other actors how to draw and whirl during the filming of "Posse" at Old Tucson.
Posse (1993)
Tucson and Arizona locations: Old Tucson, Florence, Sonoran Desert, Empire Ranch in Sonoita, Sierrita Mountains, Tucson Mountains, Benson, Tucson
Cast: Mario Van Peebles, Stephen Baldwin, Charles Lane
Genre: Western: Buffalo soldiers find gold, desert and help defend a black town from the KKK.
Box office gross: $18.29 million
Old Tucson
Lightning Jack (1994)
Tucson and Arizona locations: Old Tucson, Page, Sonoran Desert, Tucson Mountains, Sierrita Mountains, Flagstaff
Cast: Paul Hogan, Cuba Gooding Jr., Beverly D'Angelo
Genre: Comedy, western: An Australian outlaw in the wild west.
Box office gross: $16.82 million
Terminal Velocity (1994)
Tucson and Arizona locations: Old Tucson, Douglas, Little Colorado River Canyon, Tucson, Flagstaff, Phoenix
Cast: Charlie Sheen, Nastassja Kinski, James Gandolfini
Genre: Action, mystery, romance: A maverick skydiver and a former KGB agent team up to stop the Russian mafia.
Box office gross: $16.48 million
The Getaway (1994)
Tucson and Arizona locations: Tucson, Prescott, Phoenix International Raceway, Hotel Del Sol in Yuma, Downtown Yuma, Flagstaff, Sonoran Desert, Coolidge, Maricopa County Courthouse and Old Phoenix City Hall, Apache Lodge in Prescott, Arizona Biltmore Resort in Phoenix, Phoenix Greyhound Park, Union Station in Phoenix
Cast: Alec Baldwin, Kim Basinger, Michael Madsen
Genre: Action, adventure, crime: An ex-con and his wife flee after a heist goes wrong.
Box office gross: $16.1 million
Cast member Drew Barrymore attends the premiere of Confessions Of A Dangerous Mind at the Mann Bruin Theatre in Westwood, California, Wednesday December 11, 2002.
Confessions of a Dangerous Mind (2002)
Tucson and Arizona locations: Tucson, White Stallion Ranch, Nogales
Cast: Sam Rockwell, Drew Barrymore, George Clooney
Genre: Biography, comedy, crime: Adaptation of the cult memoir of game show impresario Chuck Barris.
Box office gross: $16 million
Flirting with Disaster (1996)
Tucson and Arizona locations: Tucson, Cave Creek, Phoenix, Scottsdale, Carefree, Marana
Cast: Ben Stiller, Patricia Arquette, Téa Leoni
Genre: Comedy: A young man searches for his birth parents.
Box office gross: $14.89 million
Fire Birds (1990)
Tucson and Arizona locations: Army Pilot Training Post in Tucson, Mammoth, Mesa, Sonoran Desert, Apache Leap Mountains in Superior, Superstition Mountains, Davis-Monthan Air Force Base, Superior, Picketpost Mountain in Superior, Superstition Wilderness, Miami, Globe, Reymert, Tonto National Forest, Apache Junction, Amphitheater High School
Cast: Nicolas Cage, Tommy Lee Jones, Sean Young
Genre: Action, adventure: Elite Apache helicopter pilots must destroy powerful drug cartels.
Box office gross: $14.76 million
Stay Tuned (1992)
Tucson and Arizona locations: Old Tucson, Florence, Tucson
Cast: John Ritter, Pam Dawber, Jeffrey Jones
Genre: Adventure, comedy, fantasy: a husband and wife are sucked into television sets and must survive twisted versions of TV shows.
Box office gross: $10.74 million
The Titan II Missile which is part of the Titan Missile Museum, is outside Tucson in Sahuarita, Ariz, on Nov. 14, 2018.
Cyborg (1989)
Tucson and Arizona locations: Titan Missile Museum in Green Valley, The Domes in Casa Grande, Davis-Monthan Air Force Base, Casa Grande, Green Valley, Tucson
Cast: Jean-Claude Van Damme, Deborah Richter, Vincent Klyn
Genre: Action, sci-fi, thriller: Hunt for a killer in a plague-infested future.
Box office gross: $10.17 million
The Wraith (1986)
Tucson locations: North Sixth Avenue, Fourth Avenue, Sabino Canyon, Catalina Highway, Davis-Monthan Air Force Base, East Fifth Street, West Ajo Way and East Benson Highway.
Cast: Charlie Sheen, Nick Cassavetes, Sherilyn Fenn, Randy Quaid
Genre: Sci-fi, horror: A high-schooler returns from the dead to get revenge on the psychotic drag racer who killed him.
Box office gross: $3.5 million
Howard Fischer is a veteran journalist who has been reporting since 1970 and covering state politics and the Legislature since 1982. Follow him on X, and Threads at @azcapmedia or email azcapmedia@gmail.com.
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