People Living Near Homeless Camps Could Get Refund on Taxes

Arizona homeowners could get a tax refund if they can prove their local government didn't enforce nuisance laws on the homeless near their property.

The state is considering a new refund that has some homeless rights advocates concerned but is good news for homeowners who've been struggling with property values amid an increase in the homeless population.

For years, property owners have complained that homeless encampments bring down their property values and usher in crime that wouldn't have taken place in their neighborhoods. But in November, Arizona voters could approve a tax refund that will pay homeowners for that lost value.

The law offers tax refunds to homeowners if a city "does not enforce laws regarding illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverages, and possession or use of illegal substances."

On any given night, there are roughly 14,000 homeless Arizonans, with many living on the streets. Experts typically attribute it to a lack of affordable housing in addition to a mix of mental health issues and substance abuse, but homeowners affected are increasingly fed up.

"We all know homelessness has been overtaking once-beautiful cities all over this country," Republican state Senator Justine Wadsack said, according to Ballotpedia. "What it really boils down to is, when we have citizens who break laws, government has a lot of tools to go after citizens that don't follow the law. But when our government doesn't follow the law, or enforce our law, our citizens are limited on what they can do."

Under the new refund law, property owners could get refunds for documented expenses, like security equipment, as a result of the homeless encampments near their homes.

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"The Republican backers argue it's only fair," Michael Ryan, a finance expert and the founder of michaelryanmoney.com, told Newsweek. "Why should homeowners and businesses foot the bill when officials drop the ball on enforcement? Tie tax dollars to action, and suddenly there's an incentive to clear out tent cities."

Still, many question how the refund law would impact local cities in how they attempt to solve the homelessness problem, and many don't think it's a good step forward.

"This bill is going to put cities in an impossible legal position," Jane Ahern, lobbyist for the League of Arizona Cities and Towns, previously said. "Instead of addressing the shortage of shelter capacity, this bill simply threatens to drain much-needed resources and expose cities to further litigation."

Ryan agreed that a crackdown on enforcement policies can be ineffective in the long term when it comes to dealing with the homeless.

"They just move the problem around temporarily until people's circumstances force them back onto the streets," Ryan said. "It's a costly, cyclical mess."

If cities and states instead looked to affordable housing, they might find themselves with a more sustainable solution, Ryan added. And funding job training and mental health support will do more to combat the issue.

"It still fails to provide real, sustainable solutions and compassion for those most in need," Ryan said. "At the end of the day, preventative social services have to come first, with enforcement as an absolute last resort when necessary."

Paul Collins, a professor of legal studies and political science at the University of Massachusetts Amherst, said the policy, if passed, also runs the risk of being abused by money-hungry homeowners.

"A homeowner could make improvements to their property and simply claim that the reason for doing so is because the city is not properly addressing homelessness in the homeowner's mind," Collins told Newsweek. "That's pretty hard to adjudicate and will no doubt cost cities a lot of time and resources that could be spent doing more productive things."

Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, also said the government needs to look at if this assistance will help the larger problem before voters decide.

"Voters supporting a refund are right in their concerns that homelessness in their area could affect the physical condition and value of their properties," Beene told Newsweek. "At the same point, those against the measure say more, not less, government spending is needed to give assistance to the welfare of those who are homeless. The answer may lie somewhere in the middle."