trash in the zone
Goldwater Institute Wins Landmark Case Against Tucson Over Homelessness Policies

November 13, 2025

By Matthew Holloway |

The Arizona Supreme Court has let stand a lower court ruling that holds the City of Tucson liable under voter-approved Proposition 312, siding with the Goldwater Institute and three property owners who said the city’s failure to enforce nuisance laws forced them to spend thousands cleaning up homeless encampments near their homes.

The case, Goldwater Institute v. City of Tucson, is the first public claim brought under Proposition 312—a 2024 ballot measure allowing taxpayers to seek reimbursement when cities decline to enforce ordinances against public camping, loitering, intoxication, and other nuisances.

Filed on behalf of three Tucson residents, the claim seeks more than $5,000 in reimbursement for fencing, removal of biohazardous waste such as needles and human waste, and other mitigation costs. Goldwater alleged the city has followed a “policy, pattern, or practice” of non-enforcement, even providing hand sanitizer to encampments instead of clearing them.

Proposition 312 permits property owners who pay primary property taxes to recover documented expenses caused by municipal inaction. Reimbursements are capped at the amount of property taxes paid the prior year, with any excess eligible for reapplication later.

Goldwater explained the law’s necessity on its website:

“Rampant homelessness is overtaking Arizona’s cities, as municipalities refuse to enforce laws against public camping, loitering, intoxication, and other nuisances. The result has been a rise in violent crime, biohazardous pollution, property destruction, and even death. Residents and business owners have had to take matters into their own hands, installing fences, hiring security, and cleaning up garbage, human waste, and other hazardous materials themselves—services the city is supposed to provide with the tax money these residents pay every year.”

Under Prop 312, municipalities must respond to claims within 30 days. If denied, claimants may appeal through the Arizona Department of Revenue or file suit. Goldwater has offered to assist residents, saying, “If you believe your claim was improperly denied and you would like legal assistance, please contact us! Our lawyers may be able to help you.”

Claims are filed through the Department of Revenue’s online portal at prop312reimbursement.aztaxes.gov, which requires proof of property ownership, tax payment, and mitigation costs. The department notifies cities and issues approved reimbursements by check.

The decision represents the first successful Prop 312 case against a major Arizona city and underscores growing frustration with Tucson’s approach to homelessness amid public-safety concerns.

In an op-ed Monday, Timothy Sandefur, Goldwater’s vice president for legal affairs, urged city leaders to act:

“Homelessness is a tragic and frustrating issue. But policies that leave people living on the streets aren’t the answer. Instead, they only create a new set of victims: the innocent taxpayers who must pay for police protection that they don’t receive. The time has come for city officials to shoulder their responsibilities—instead of forcing homeowners to shoulder the costs.”

Sandefur also warned that property owners in other states lack similar protections, citing Utah, and encouraged lawmakers elsewhere to “follow Arizona’s lead” by adopting Goldwater’s proposed Safe Neighborhoods Act.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

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