Proposition 312 Arizona Property Tax Reimbursement for Non-Enforcement of Public Nuisance Laws

On November 5, 2024, Arizona voters passed Proposition 312 (enacting A.R.S. § 42-17451). From January 1, 2025 through December 31, 2035, Proposition 312 allows a property owner to apply for a reimbursement once per year of the documented, reasonable expenses incurred, with respect to the property owner’s real property, to mitigate the effects of a city, town, or county (Subject Jurisdiction):

  1. Adopting and following a policy, pattern, or practice that does not enforce existing laws prohibiting illegal camping, obstructing a public thoroughfare, loitering, panhandling, urinating or defecating in public, consuming alcoholic beverages in public, or possessing or using illegal substances; or
  2. Maintaining such public nuisance.

Annual Reimbursement Limitation
Proposition 312 sets the reimbursement amount as the documented, reasonable expenses that the property owner incurred, with respect to the property owner’s real property, to mitigate the effects of the Subject Jurisdiction adopting and following a policy, pattern, or practice of not enforcing existing law prohibiting a listed public nuisance, or its maintenance of such public nuisance.

However, if the reimbursement amount is more than the amount the property owner paid in primary property taxes for that real property to the Subject Jurisdiction for the prior tax year, the reimbursement for that tax year would be limited to the amount of primary property taxes paid. The property owner must then reapply in subsequent tax years to request the unreimbursed portion of such expenses. Additionally, if a public nuisance or policy, pattern, or practice remains in place, the property owner would be eligible to apply for another reimbursement for any additional documented, reasonable expenses incurred in a subsequent year, unless the property owner entered into a settlement with the Subject Jurisdiction.

A visual guide has been prepared to assist with determining the amount of primary property taxes a property owner has paid to the relevant Subject Jurisdiction.

Special Note to Tenants / Triple-net Lessees
Please note that a tenant leasing real property, including a tenant under a triple-net lease, is not eligible to apply for a reimbursement under this law. Only property owners (landlords) may request reimbursement. Tenants should coordinate with their landlords regarding Proposition 312 reimbursements.

Applying for Reimbursement
Proposition 312 requires a property owner to apply to the Arizona Department of Revenue (Department) to initiate the reimbursement process. The property owner would be eligible for a reimbursement from the city or town in which their real property is located, or from the county in which their real property is located if the real property is located in an unincorporated area of the county.

The Department has developed a process for the property owner to request a reimbursement of expenses incurred to mitigate a qualifying nuisance from the applicable Subject Jurisdiction. The property owner must submit an Application for Reimbursement of Nuisance Mitigation Expenses found at AZTaxes.gov to initiate their request. Under current law, the property owner will have until December 31, 2035 to timely submit an application.

For questions about submitting an application, contact the Department’s dedicated Prop 312 line at (602) 716-6007. You may also use this dedicated Prop 312 line to check the status of a submitted application if at least 120 days have passed since your submission. Because the Subject Jurisdiction approves or denies these applications, the Subject Jurisdiction is the only party that can answer questions regarding such decisions. The Department cannot answer questions regarding the Subject Jurisdiction’s decision.

Our Property Tax Unit cannot and will not answer questions or provide status updates. Instead, please use the number above for all questions regarding this program.


Provision of Proposition 312

Proposition 312, approved by voters in the November 2024 general election, is codified as Arizona Revised Statutes (A.R.S.) § 42-17451.

 

DEFINITIONS

Before reviewing the FAQs, please familiarize yourself with these important terms referenced in both FAQs and related documentation:

  • Affected Real Property: Real property that is located in the State of Arizona, as listed in the records of the county assessor’s office of the county in which the property is located, and that is affected by a Qualifying Nuisance.
  • Application: Application for Reimbursement of Nuisance Mitigation Expenses.
  • Attorney-in-Fact: An individual who is not an Official Representative to whom the Named Property Owner has conveyed the power to submit an Application using a Power of Attorney - Proposition 312.
  • Eligible Primary Property Taxes: The primary property taxes levied by a Subject Jurisdiction that a Named Property Owner has already paid for the previous tax year. This will determine the maximum amount that the owner can claim and receive for the current calendar year. Please note that not all incorporated cities and towns levy a primary property tax, which means that the maximum amount of reimbursement could be $0. 
  • Named Property Owner: The fee title holder of the Affected Real Property. (Note: The term “property owner” is used instead of Named Property Owner on both the Application and the Power of Attorney - Proposition 312.)
  • Official Representative: For a Named Property Owner that is an entity rather than an individual, one of the following:
    • For a corporation, a principal officer (i.e., a chief executive officer, president, secretary, treasurer, chief financial officer, chief operating officer, or any other corporate officer who has the authority to bind the corporation), any person designated by a principal officer, or any person designated in a resolution by the corporate board of directors.
    • For a partnership, a partner of the partnership.
    • For a limited liability company (LLC), a member, if the LLC is member-managed, or any manager, if the LLC is manager-managed.
    • For a trust, a trustee.
  • Property Tax Documentation: The detailed property tax bill  from your county for the prior tax year. Please refer to the visual guide to learn how to find your detailed property tax bill.
  • Qualifying Nuisance: The type of nuisance recognized by A.R.S. § 42-17451(A)(1) that is affecting the real property of the Named Property Owner and that the Named Property Owner has unsuccessfully attempted to have the Subject Jurisdiction address. A Qualifying Nuisance includes only the following:
    • Illegal camping,
    • Obstructing public thoroughfares,
    • Loitering,
    • Panhandling,
    • Public urination or defecation,
    • Public consumption of alcoholic beverages, or
    • Possession or use of illegal substances.

Subject Jurisdiction: The incorporated city or town in which the Affected Real Property is located that either has not enforced existing laws or ordinances to stop the Qualifying Nuisance or is maintaining the Qualifying Nuisance. If the Affected Real Property is located outside of an incorporated city or town’s boundaries, then the Subject Jurisdiction is the county in which the Affected Real Property is located. Please note that not all incorporated cities and towns levy a primary property tax, which means that the maximum amount of reimbursement  could be $0.

 

Resources

Application for Reimbursement of Nuisance Mitigation Expenses

For questions about submitting an application, contact the Department’s dedicated Prop 312 line at (602) 716-6007. You may also use this dedicated Prop 312 line to check the status of a submitted application if at least 15 days have passed since your submission. Because the Subject Jurisdiction approves or denies these applications, the Subject Jurisdiction is the only party that can answer questions regarding such decisions. The Department cannot answer questions regarding the Subject Jurisdiction’s decision.

 

Proposition 312 FAQs

Submitting a Claim

If you have read all of these FAQs and you still have questions about the Application or how to submit it, you may contact the Department’s dedicated Prop 312 line at (602) 716-6007. If you have already submitted an Application, please allow at least 15 days of processing time before calling this dedicated line to check on the status of your application. If applicants call before 15 days, such calls may slow down processing times.

The following must be true before you are able to submit an Application in 2025:

  • You must be a Named Property Owner (or be an Official Representative or Attorney-in-Fact of such Named Property Owner) of Affected Real Property impacted by a Qualifying Nuisance who paid Eligible Primary Property Taxes on that property for tax year 2024. This means you received a property tax bill for the Affected Real Property, the first installment of which was due and payable on October 1, 2024.
  • You must have proof that you contacted the Subject Jurisdiction to either enforce existing laws or ordinances to stop the Qualifying Nuisance and
    • the Subject Jurisdiction did not do so, or 
    • the Subject Jurisdiction maintained the Qualifying Nuisance

Within any calendar year, a Named Property Owner can receive up to the amount of Eligible Primary Property Taxes that the owner has already paid to the Subject Jurisdiction for the prior tax year. Your Application can claim more than the amount that you paid in Eligible Primary Property Taxes to the Subject Jurisdiction for the prior tax year, but the maximum amount you can receive in 2025 is capped at the amount of Eligible Primary Property Taxes that you have already paid, as of the date you submit an Application in 2025, for the 2024 tax year. 

Note that not all incorporated cities and towns levy a primary property tax. If your Affected Real Property is located in one of these 40 incorporated cities and towns that do not levy a primary property tax, you are ineligible to receive a reimbursement under A.R.S. § 42-17451 in 2025, although you may still submit an Application to preserve a future right to receive one. 

  • Example 1: You are the Named Property Owner of a building located in the City of Flagstaff in Coconino County. For tax year 2024, $10,000 in total property taxes was levied for the building, $1,500 of which constitutes primary property taxes for the City of Flagstaff. As of January 1, 2025, you have paid the first one-half installment of the bill ($5,000) and intend to pay the second one-half installment of the bill between March 1 and May 1, 2025. 
    • If you submit an Application to the Department before you pay the second one-half installment of the bill, you will be eligible to claim and may receive a maximum of $750 in the 2025 calendar year, reflecting the fact that only one-half of the 2024 primary property taxes levied by the City of Flagstaff have been paid.
    • If you submit a request to the Department after you pay the second one-half installment of the bill, you will be eligible to claim and may receive a maximum of $1,500 in the 2025 calendar year, reflecting the fact that all of the 2024 primary property taxes levied by the City of Flagstaff have been paid. 

Example 2: You are the Named Property Owner of a single-family residence located in the City of Mesa in Maricopa County. For tax year 2024, $1,100 in total property taxes was levied for the residence. However, the City of Mesa does not levy a primary property tax. Therefore, the amount of reimbursement you may be entitled to receive in 2025 is $0.

You need to know two separate amounts: the amount of primary property taxes levied by the Subject Jurisdiction for the prior tax year, and the amount of Eligible Primary Property Taxes you have paid as of the date you submit an Application. 

  • To find out the amounts set forth above, you can access and print a copy of the relevant Property Tax Documentation for tax year 2024 from the website of the county treasurer. The Department has prepared a visual guide to assist you in obtaining the required Property Tax Documentation and identifying your Eligible Primary Property Taxes. 
  • All property tax payments, including payments of Eligible Primary Property Taxes to a Subject Jurisdiction, are processed by your county treasurer.

For an Application to be processed as complete, you will be prompted to upload supporting documentation (items with a red asterisk (*) must be included):

  • *ID: A copy of your government-issued photo identification (e.g., state- issued driver’s license or ID, passport, military ID).
  • *Property Tax Documentation: A copy of all pages of your Property Tax Documentation from your county treasurer. For examples of acceptable documents issued by each county treasurer, check out our visual guide.
  • *Property Tax Payment(s): Copies of your canceled check(s), successful online payment submission(s), relevant Property Tax Documentation, or equivalent to show the amount of Eligible Primary Property Taxes you have paid for the prior tax year.
  • *Communications with Subject Jurisdiction: Documentation showing or describing all communications between the Named Property Owner and the Subject Jurisdiction regarding the Qualifying Nuisance(s) for which you are submitting an Application. 
  • *Expenses:  Proof of the expenses that you have incurred (e.g., invoice, purchase order, receipt). A contractor or vendor’s estimate that is not accompanied by proof of payment is insufficient. 
  • Prior Reimbursements: The total of all reimbursement amounts (if any) received in previous years.
  • Power of Attorney: If you are not the Named Property Owner or Official Representative of the Named Property Owner, a fully completed and executed Power of Attorney - Proposition 312 form obtained from the Named Property Owner naming you as attorney-in-fact for the specified application year.

If the Named Property Owner is an entity, you must be an Official Representative of the entity (see Definitions, above) to submit an Application without a Power of Attorney - Proposition 312. Otherwise, you must include a Power of Attorney - Proposition 312 when you submit your Application.

No. There is only one Subject Jurisdiction for each Affected Real Property. If your Affected Real Property is located within the boundaries of a city or town, that city or town is the Subject Jurisdiction. If your Affected Real Property is not located within the boundaries of a city or town, the county is the Subject Jurisdiction.

There are 40 cities and towns that do not currently levy a primary property tax.

No amount will be paid, even if the application is submitted and approved, unless  the Subject Jurisdiction  begins levying a primary property tax. Should there be a change in the future,  you would still  need to submit a new Application before the Department can process and issue a reimbursement for any approved amounts. No interest will accrue between the date of approval and the  time that a reimbursement may eventually be paid.

 

For any one Affected Real Property, only one Application may be submitted per year. Each Application covers only one tax year, which is the tax year   before the  Application is submitted. A property tax year begins on January 1 and ends on December 31 of any given year. Note, however, that property taxes may be paid in two installments, one due and payable on October 1 of the applicable tax year and the second by March 1 of the following year (i.e., the calendar year during which an Application is submitted). Thus, if you pay your property taxes in two installments, as allowed by law, you may wish to wait until after you have paid your second installment to maximize your potential reimbursement amount in the year you submit the Application.

In a circumstance where the Affected Real Property is located on multiple real property parcels that are  side-by-side and operated as one single property, you must  still submit a separate, complete Application for each parcel and/or account, as if the Affected Real Property involved only one parcel and/or account. To note that the separate parcels and/or accounts are  side-by-side and operated as a single property, send an email to [email protected] that lists all of the parcels/accounts that make up the Affected Real Property that you applied for separately.

Approved Claims and Payment

You will receive an email from the Department notifying you that your Application has either been approved or denied within 45 to 60 days after the date your Application is submitted.

You should receive your reimbursement by mail within 60 days of being notified that your Application has been approved.

Denials of Claims

If your Application was returned as incomplete, you may submit a new Application on or before December 31 of the same year.

If your Application was determined to be complete, you will be notified via email and it will be forwarded to the Subject Jurisdiction. 

If your Application was denied on substantive grounds by the Subject Jurisdiction, you may not submit another Application for the same Affected Real Property for the same year.

Yes. The Subject Jurisdiction is required to notify the Department of the reason(s) for which it rejected an Application. This information will be provided by the Department via email to the Named Property Owner.

If your Application is rejected by the Subject Jurisdiction on substantive grounds, you have the right to file an appeal in Superior Court. The law does not permit the submission of another Application for the Affected Real Property for the same tax year.  If you have received a rejection notice and have any questions, you may contact the Subject Jurisdiction as provided in the rejection notice.

If your Application is incomplete or contains an error that is non-substantive, it will be returned as incomplete  and will not be treated as a valid Application.  In this case, you will be notified with instructions on how  to submit a new Application on or before December 31 of the same year.

 

Miscellaneous

No, interest does not accrue on a nuisance reimbursement claim.

No. You may apply for either but not both.