By Chamber Business News
Frustrated by the effects of municipal governments’ unwillingness to adequately address a growing homelessness problem, Arizona lawmakers in 2024 passed HCR 2023, which gives voters this November the chance to decide whether property owners should receive financial relief for government’s failures.
Proposition 312
Set to take effect in the 2025 tax year and continue through 2035, Proposition 312 introduces a new refund mechanism aimed at reimbursing property owners for expenses incurred in mitigating the effects of a public nuisance on an owner’s private property or for the expenses incurred due to a city’s failure to address homelessness and other issues like panhandling and loitering in thoroughfares.
- Proposition 312 allows property owners to apply for a refund once per tax year for documented, reasonable expenses.
- If the measure passes, property owners would apply for a refund to the Arizona Department of Revenue, which would then notify the relevant city, town, or county. The local authorities then have the option to accept or reject the refund request. If the request is accepted or remains unacknowledged for at least 30 days, ADOR will pay the refund.
- In cases where the refund is rejected, property owners can pursue further legal action to determine their entitlement to the refund.
- Refunds are based on the expenses incurred by the property owner that result from the city’s failure to address existing nuisance laws, but the refund amount will be limited to what the owner paid in primary property taxes for the previous year.
- Property owners can reapply in subsequent tax years to claim the remaining balance. If the nuisance or policy persists, additional refunds can be requested in future tax years if a settlement is not reached with the local government.
