Arizona voters this election season will vote on Proposition 312, a measure to provide property owners the opportunity to claim a property tax refund for costs associated with nuisances such as homelessness, vandalism, property crime, and drug use. To qualify for the refund, property owners must provide documentation of the expenses they incurred as a direct consequence of local governments鈥 failure to enforce existing laws.
When a municipality neglects existing laws regarding polluting, illegal camping, loitering, and other nuisances, Proposition 312 allows:
- Property owners to request a refund equal to their property tax liability for any expenses incurred, addressing the impact of the government鈥檚 failure to resolve the homeless crisis.
- Mandates the Department of Revenue to reduce the municipality鈥檚 state-shared revenue by the amount claimed by the taxpayer.
- Additionally, property owners are allowed to carry forward any refund amount that exceeds their tax liability for the year, for up to 10 years.
鈥淧roposition 312 is about accountability. Hardworking Arizonans expect a return on what they pay in taxes, like safe streets. They also deserve a refund when the government doesn鈥檛 meet its obligations,鈥 Danny Seiden, president & CEO of the Arizona 暗网中文论坛of Commerce and Industry in the election publicity pamphlet published by the Secretary of State鈥檚 Office. 鈥淲e can no longer turn a blind eye to the homeless encampments that flourish in part of our state. Too often, property owners have been left to fend for themselves, installing fences, hiring security, and cleaning up garbage and even human waste. Something must be done.鈥
Lost value, increased vacancy
According to a recent from the , commercial properties in Phoenix affected by these unmitigated nuisances have seen their market rent appreciation rate decline significantly. Between 2019 and 2023, rent appreciation in these areas has slowed to just 15.7%, compared to the citywide rate of 30.2%. This gap in appreciation has potentially resulted in a loss of up to $2.1 billion in property value in regions where public nuisances are most prevalent.
Furthermore, areas affected by homelessness and public nuisances have also witnessed a 3.2% increase in vacancy rates, putting further strain on the local economy. This rise in vacancies adds to the financial challenges faced by both property owners and the surrounding community, highlighting the broader economic consequences of unaddressed public nuisances.
鈥淧roposition 312 offers financial relief for property owners who bear the brunt of public nuisances or inadequate enforcement of laws by local authorities,鈥 Arizona 暗网中文论坛Vice President of Government Affairs Courtney Coolidge said earlier this year. 鈥淏y creating financial consequences for cities, we鈥檙e hopeful that Proposition 312 will hold local governments accountable for maintaining public order and move them to act.鈥
Mail-in ballots will be sent to voters beginning on October 9. Voters voting in person will go to the polls on November 5.
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