Arizonans have passed a law that would allow both commercial and residential property owners to be eligible for a tax refund if they can provide proof that the city failed to enforce public nuisance laws affecting their property.
At 90% of precincts participating, 58.6% of voters approved Prop. 312. This proposition has received a national audience as one of the laws encouraging law enforcement to criminalize homelessness put forth following the 2023 ruling by SCOTUS striking down protections for homeless individuals.
Prior to this, a ruling by a federal appellate court stated that, “as long as there is no option of sleeping indoors, the government cannot criminalize indigent, homeless people for sleeping outdoors, on public property, on the false premise they had a choice in the matter.”
Prop. 312 put forward by Senate President Warren Petersen allows property owners to receive a property tax refund to cover “reasonable” costs accrued by unmitigated public nuisances related to homelessness, vandalism, property crime and drug use.
The property owner would need to document the expense and be able to prove that it was a direct result of the government failing to enforce relevant public nuisance laws.
It is then the State Department of Revenue’s responsibility to approve or deny the refund of the claims. If the claim is rejected by the state or county, property owners would be able to bring a civil claim to superior court. If the court rules in favor of the property owner, the local government would be required to repay the litigation costs.
