by Staff Reporter | Nov 27, 2024 | News
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.
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by Daniel Stefanski | Nov 23, 2024 | News
By Daniel Stefanski |
A ballot measure to protect Arizonans from the rise of unabated homelessness in communities was overwhelmingly passed by voters in the General Election.
Earlier this month, Proposition 312 received almost 60% of the vote, cruising to a smooth victory on Election Night. The measure, which was referred to the ballot from the Arizona Legislature, stipulates that “property owners may apply for a tax refund for expenses incurred due to a governing authority’s failure to enforce certain public nuisance laws on or near the owner’s real property.”
The legislative vehicle for the measure, HCR 2023, was sponsored by House Speaker Ben Toma. It passed both chambers in the Arizona Legislature with bipartisan support and was transmitted to the Secretary of State’s Office in March of this year.
In a statement after the successful passage of the bill out of his chamber, Senate President Warren Petersen said, “There are instances where local governments routinely and repeatedly fail their citizens by not enforcing laws. An example of this would be the City of Phoenix’s handling of the former homeless encampment known as ‘The Zone.’ This area was not only a public safety and public health disaster for those who camped there, but it was also a detriment to the livelihoods of small business owners who set up their shops in the area.”
Petersen added, “Money talks, and as a way to encourage municipalities to enforce the law, Speaker Toma and I teamed up to sponsor HCR 2023/SCR 1006. This measure is a ballot referral that would protect law-abiding citizens. If approved by voters, property owners would be allowed to request a refund for expenses incurred to mitigate the problem, up to the amount of their property tax liability. The funds would be deducted from the local government’s state shared revenue.”
Speaker Toma also had said, “Business owners and residents alike are having their property stolen, vandalized, or terrorized and are desperate for help. That’s why I sponsored HCR2023, to hold our local governments accountable to our community members and to help provide some relief for property owners who have suffered damages because of a city’s purposeful failure to provide the public health and safety services we all pay for.”
The Arizona Chamber of Commerce and Industry, which was instrumental in promoting the proposition, issued a statement following the General Election win, writing, “Arizona voters have sent a clear message: Government, do your job. They do not want our state to become the next San Francisco or Los Angeles. Prop 312 is a win for property owners, businesses, and everyday Arizonans who too often shoulder the costs of unaddressed homelessness.”
The Goldwater Institute, which also pushed for Prop 312’s passage, also took a well-deserved victory lap after the positive result. The organization’s President and CEO, Victor Riches, stated, “The voters sent a clear message this election cycle: they demand their tax dollars be used to enforce the law and address rampant homelessness. Now that Prop 312 is law, business and property owners will not be left holding the bag when municipalities refuse to do their job.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Oct 5, 2024 | News
By Daniel Stefanksi |
Arizonans looking for more information about a ballot measure that addresses the state’s growing homelessness issues can access vital research from a local think tank organization.
Late last month, the Common Sense Institute Arizona (CSI) released a report “on the economic and fiscal impact of Proposition 312, finding that there is indeed a link between the increase in homelessness and declining property values.”
According to CSI, “Proposition 312 is aimed at tackling Arizona’s growing homelessness crisis, offering property owners the opportunity to receive tax relief for costs incurred due to unmitigated public nuisances, such as homelessness, vandalism, property crime, and drug use.”
The report from CSI found “that under the status quo, property owners in areas with unmitigated public nuisances are seeing their values decrease in real value [while] homelessness is on the rise.”
“The rising rates of crime, homelessness, and drug activity in key areas of Phoenix appear to have taken a toll on property values and overall economic activity,” said Glenn Farley, Director of Policy & Research for CSI. “In this kind of environment of declining relative property values and higher crime rates, there are ongoing problems requiring mitigation – like security and cleanup costs. In practice, though, the real impact is likely to be preventive: local governments may ultimately be more proactive about mitigating these nuisances if this proposal is enacted than they are today.”
The Arizona-based Goldwater Institute took a position in support of Proposition 312 ahead of the November General Election. On its website, the influential organization wrote, “We saw it in Phoenix’s homeless Zone when the city allowed lawlessness to run wild. We saw it in Tucson, too. Amid rampant homelessness, hardworking Arizona taxpayers are being forced to bear the burden of a city’s refusal to do its duty to protect public health and safety, paying out of pocket to install fences, hire security, clean up garbage, human waste, and other hazardous materials themselves. Prop 312 ensures that when government fails to enforce existing laws regarding illegal camping, loitering, pollution, and other nuisances, taxpayers will no longer be forced to foot the bill.”
Proposition 312 was made possible by the Arizona State Legislature earlier this year, when Republicans led the way to pass HCR 2023, which, if eventually passed by state voters in November, would “allow a property owner to apply for a primary property tax refund if the owner documents expenses caused by a city, town or county adopting a policy, pattern or practice which declines to enforce existing laws or the maintaining of a public nuisance” – according to the overview provided by the state House.
In a statement after the successful passage of the bill out of his chamber, Senate President Warren Petersen said, “There are instances where local governments routinely and repeatedly fail their citizens by not enforcing laws. An example of this would be the City of Phoenix’s handling of the former homeless encampment known as ‘The Zone.’ This area was not only a public safety and public health disaster for those who camped there, but it was also a detriment to the livelihoods of small business owners who set up their shops in the area.”
Petersen added, “Money talks, and as a way to encourage municipalities to enforce the law, Speaker Toma and I teamed up to sponsor HCR 2023/SCR 1006. This measure is a ballot referral that would protect law-abiding citizens. If approved by voters, property owners would be allowed to request a refund for expenses incurred to mitigate the problem, up to the amount of their property tax liability. The funds would be deducted from the local government’s state shared revenue.”
The chamber’s president also noted that “all Senate Democrats voted ‘no’” on the referral.
The key findings from CSI about Proposition 312 are as follows:
- “Problem increasing: Crime, drug overdoses, unsheltered homelessness, and other public nuisances have risen dramatically in Arizona and the greater Phoenix area since 2019. But the impacts are disproportionate: the problem has become more visible in certain parts of the city. This creates a negative economic impact for those parts of the city where local officials have failed to enforce existing laws
- “Property Value Loss: Commercial properties in Phoenix affected by unmitigated public nuisances have seen market rent appreciation fall to just 15.7% between 2019 and 2023, compared to the citywide rate of 30.2%. This represents up to $2.1 billion in lost property value due to slower appreciation in areas with high levels of homelessness, crime, and public nuisances.
- “Increased Crime: In areas with high public nuisance activity, the average crime rates for drug offenses, burglaries, robberies, and arson were between 3 to 5 times higher than the Phoenix average, driving up costs for property owners due to increased security measures and property damage.
- “Impact on Businesses: Businesses located in areas with elevated public nuisance levels experience significantly lower property appreciation and higher vacancy rates. The economic toll of unmitigated public nuisances has made it harder for businesses to thrive in these areas.”
During the legislative process this year, representatives from Barry Goldwater Institute for Public Policy Research, QuikTrip, Arizona Free Enterprise Club, Arizona Chamber of Commerce, Arizona Food Marketing Alliance, and the National Federation of Independent Business, indicated their support for the proposal on the Arizona Legislature’s Request to Speak system. Representatives from the League of Arizona Cities & Towns, Living United for Change in Arizona, Arizona Coalition to End Sexual and Domestic Violence, Professional Fire Fighters of Arizona, Arizona Association of Counties, County Supervisors Association of Arizona, Arizona Housing Coalition, and several state cities and towns, signed in to oppose the measure.
Interested voters can read the full CSI report regarding Prop 312 here.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Mar 15, 2024 | News
By Daniel Stefanski |
A ballot referral to help protect Arizona business owners from degrading landscapes outside their front doors will be considered by state voters thanks to the efforts of legislators.
The Arizona Senate President, Warren Petersen, and Speaker of the House Ben Toma introduced HCR 2023 / SCR 1006, which would “allow a property owner to apply for a primary property tax refund if the owner documents expenses caused by a city, town or county adopting a policy, pattern or practice which declines to enforce existing laws or the maintaining of a public nuisance” – according to the overview provided by the state House.
In a statement after the successful passage of the bill out of his chamber, Petersen said, “There are instances where local governments routinely and repeatedly fail their citizens by not enforcing laws. An example of this would be the City of Phoenix’s handling of the former homeless encampment known as ‘The Zone.’ This area was not only a public safety and public health disaster for those who camped there, but it was also a detriment to the livelihoods of small business owners who set up their shops in the area.”
President Petersen added, “Money talks, and as a way to encourage municipalities to enforce the law, Speaker Toma and I teamed up to sponsor HCR 2023/SCR 1006. This measure is a ballot referral that would protect law-abiding citizens. If approved by voters, property owners would be allowed to request a refund for expenses incurred to mitigate the problem, up to the amount of their property tax liability. The funds would be deducted from the local government’s state shared revenue.”
The chamber’s president also noted that “all Senate Democrats voted ‘no’” on the referral.
At the end of February, the Arizona House approved the referral with a 31-28 vote (with one vacant seat). The Arizona Senate then passed the measure with a 16-12 vote (with two members not voting). The referral was then transmitted to the Arizona Secretary of State to be placed on the November General Election ballot.
Representatives from Barry Goldwater Institute for Public Policy Research, QuikTrip, Arizona Free Enterprise Club, Arizona Chamber of Commerce, Arizona Food Marketing Alliance, and the National Federation of Independent Business, indicated their support for the proposal on the Arizona Legislature’s Request to Speak system. Representatives from the League of Arizona Cities & Towns, Living United for Change in Arizona, Arizona Coalition to End Sexual and Domestic Violence, Professional Fire Fighters of Arizona, Arizona Association of Counties, County Supervisors Association of Arizona, Arizona Housing Coalition, and several state cities and towns, signed in to oppose the measure.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Elizabeth Troutman | Mar 7, 2024 | News
By Elizabeth Troutman |
On Monday, the Arizona Senate approved HCR 2023 to be on the 2024 general election ballot. The ballot measure would compensate residents, businesses, and property owners whose livelihoods are harmed by lawlessness surrounding the homelessness crisis.
According to the Goldwater Institute, the first-in-the-nation reform allows property owners, who have had to deal with mitigation expenses as a result of a municipality’s purposeful failure to enforce nuisance regulations related to the homeless crisis, to receive a refund for damages up to the amount of their property tax liability.
The funds are then deducted from the offending municipality’s state shared revenue and sent to the property owner.
“Arizonans no longer trust that their tax dollars are being used by local governments to enforce the law and address rampant homelessness,” Goldwater President and CEO Victor Riches said. “This ballot measure will ensure that when municipalities fail to do their job, business and property owners are not left holding the bag.”
The Goldwater Institute is a Phoenix-based conservative think tank. The group says the reform has a large coalition of support from residents, property owners, and business owners who have been hurt by their government’s failure to enforce the law, and the government’s tendency for pushing homeless people into unofficial open-air shelters like “The Zone” in Phoenix.
The bill was sponsored by Senate President Warren Petersen and Speaker of the House Ben Toma, both Republicans.
Toma said Arizona residents are tired of lawlessness and inaction regarding the homelessness crisis.
“Business owners and residents alike are having their property stolen, vandalized, or terrorized and are desperate for help,” Toma said. “That’s why I sponsored HCR2023, to hold our local governments accountable to our community members and to help provide some relief for property owners who have suffered damages because of a city’s purposeful failure to provide the public health and safety services we all pay for.”
Correction: A previous version of this story incorrectly stated that the Goldwater Institute was founded by Barry Goldwater. The story has been corrected.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
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