appropriation; diminished value; Phoenix; damages

Plain English Breakdown

The bill specifies reductions first from urban shared revenues and then state transaction privilege tax revenues if needed, but the summary simplifies this to a general reduction.

HB4096: State Funding for Phoenix Property Value Loss Claims

This bill sets aside $333 million each year for three years to pay property owners in Phoenix who have successful legal claims against the city regarding lost property value from zoning actions.

What This Bill Does

• Appropriates $333,000,000 from the state general fund for fiscal years 2026-2027, 2027-2028, and 2028-2029.
• Requires the State Treasurer to hold these funds indefinitely until they are distributed to eligible claimants or property owners in Phoenix.
• Allows payments for damages resulting from diminished property values due to zoning ordinances adopted by the city of Phoenix under section 12-1134, Arizona Revised Statutes.
• States that state distributions replace any direct payments made by the City of Phoenix once a claimant presents proof of a successful claim, settlement, or judgment.
• Reduces shared revenue sent from the state to the City of Phoenix by $333,000,000 in each of those three fiscal years.

Who It Names or Affects

• Property owners within the city of Phoenix who have a successful claim against the city for diminished property values.
• The State Treasurer, who manages and distributes the appropriated funds.
• The City of Phoenix, which receives reduced state shared revenue payments.

Terms To Know

Appropriation

An official act by the legislature that sets aside a specific amount of money for a certain purpose.

Diminution in property values

A decrease or loss in how much a piece of real estate is worth.

Shared revenues

Money collected by the state that is legally required to be sent back to cities and towns, which this bill reduces for Phoenix.

Limits and Unknowns

• The bill does not specify how many claimants will qualify or if there are enough funds for all claims.
• No effective date is listed in the provided source material.
• The text states when payments replace city actions but does not detail the exact process for applying for these state distributions.

Official Summary Text

HB4096 - appropriation; diminished value; Phoenix; damages

Current Bill Text

HB4096 - 572R - I Ver

REFERENCE TITLE:
appropriation; diminished value; Phoenix; damages

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4096

Introduced by

Representative
Kupper

AN
ACT

Appropriating monies to the state
treasurer.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Appropriation;
state treasurer; diminution in property values; intent

A. The following amounts
are appropriated from the state general fund in the following fiscal years to
the state treasurer to hold indefinitely to distribute to eligible claimants or
property owners that own property in the city of Phoenix for damages from
claims filed pursuant to section 12-1134, Arizona Revised Statutes, resulting
from the diminution in property values due to implementation of zoning
ordinances and other actions adopted by the city of Phoenix:

1. $333,000,000 in fiscal
year 2026-2027.

2. $333,000,000 in fiscal
year 2027-2028.

3. $333,000,000 in fiscal
year 2028-2029.

B. A claimant or property
owner is eligible to receive a distribution from the monies appropriated in
subsection A of this section if the claimant or property owner presents to the
state treasurer proof of a successful claim, settlement or judgment with the
city of Phoenix.� Distributions made pursuant to subsection A of this section
shall be in lieu of payments or distributions made directly by the city of
Phoenix.

C. The legislature intends
that the state shared revenues to the city of Phoenix appropriated in the
general appropriations act for each of fiscal years 2026-2027, 2027-2028 and
2028-2029 be reduced by $333,000,000. The reduction for each fiscal
year shall first be reduced from urban shared revenues and then from state
transaction privilege tax revenues.