appropriation; diminished value; Phoenix; damages

HB 4096 would appropriate $333 million annually from the state general fund for fiscal years 2026-2027 through 2028-2029 to compensate Phoenix property owners whose property values decreased due to city zoning changes. Eligible owners must provide proof of a successful claim, settlement, or court judgment against Phoenix related to these value losses. The state would pay this directly to property owners, replacing any payments Phoenix would otherwise make. To offset this cost, the state would reduce Phoenix's annual state funding by $333 million, first from urban shared revenues and then from transaction tax revenues.