By Staff Reporter |
Arizonans enacted a major incentive for local governments to address homelessness.
Voters approved Proposition 312, which requires local governments to compensate its property and business owners for damages caused by the homeless. Governor Katie Hobbs certified the proposition on Monday alongside all other election results.
Proposition 312 would secure compensations through a refund on property tax payments up to an amount matching costs incurred by local government’s “failure to enforce laws and ordinances prohibiting illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverages, and possession or use of illegal substances.”
Should the cost of damages exceed the property tax bill, the proposition gives the owner the right to apply for a refund from their next property tax payment(s) in perpetuity until that initial balance is paid.
“Property owners would be eligible annually for refunds until the taxing entity begins enforcing the relevant public nuisance laws,” stated the ballot summary.
Policy experts anticipate the Arizona proposition to inspire other cities to adopt a similar policy.
The Goldwater Institute, which crafted Proposition 312, said in a statement on Monday that the measure provided another tool in addressing the homeless crisis facing Phoenix and major cities in other states. Victor Riches, Goldwater Institute’s senior communications manager, said in an opinion piece for The Wall Street Journal that the proposition should serve as sufficient motivation for local elected officials to act with more urgency.
“Proposition 312 should be a wake-up call for elected officials forcing law-abiding businesses and residents to pay the price for a crisis they didn’t create,” said Riches. “The message to politicians couldn’t be clearer: Do your job. Enough is enough.”
Riches identified Phoenix and its infamous downtown area unofficially cordoned off for the homeless (“The Zone”) as a prime example of the “government malfeasance” that allowed the adverse effects of homelessness on properties and businesses in the area.
“Property values plummeted in the Zone. Small businesses suffered. People lost their livelihoods as dozens of business owners had no choice but to close up shop,” said Riches. “And even as the city spent over $180 million to address the crisis (only a fraction of which is publicly accounted for), the number of homeless people in Phoenix rose 92% between 2018 and 2023.”
Nearly 59 percent of voters (1.8 million votes) approved Proposition 312. The legislative vehicle for the proposition, HCR 2023, passed in both chambers with bipartisan support earlier this year.
Major leftist organizations said in their arguments against Proposition 312 that the cities and counties shouldn’t face financial punishment for the acts of the homeless, and reduced tax revenue would hinder funding for community assistance geared toward homelessness.
Among those to oppose Proposition 312 were Civic Engagement Beyond Voting, Lutheran Social Services of the Southwest, Opportunity Arizona, Fuerte Arts Movement, Living United for Change in Arizona, and the ACLU of Arizona.
The Common Sense Institute Arizona (CSI) found in a report released last month that the proposition would likely improve property values.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
