Ducey vetoes bill that would allow developers to levy taxes on homeowners
"The governor rejected House Bill 2568, a priority of House Speaker David Gowan, citing concerns the legislation could harm taxpayers. The bill would have changed financing rules for community facilities districts, which are special taxing districts created to pay for infrastructure such as roads, sewers and water lines. Gowan, backed by a coalition of developers and investors, argued the bill would allow development to proceed more rapidly, primarily because it would have loosened some control local governments have over formation of the districts. For example, it would have mandated a district be formed upon request by landowners, and it would have given developers more control of the district's financing. Local governments pushed back, complaining the bill would minimize the oversight cities and towns provide on the tax rate needed to pay for infrastructure. Local government, controlled by elected officials, is more accountable than a board controlled by unelected developers or their designees, they said."
These special districts are being used increasingly in Florida, Colorado, California, and other states. They give developers total control over public--not private--government entities that can issue muni bonds to pay for building infrastructure. Guess who pays back the bondholders, through property taxes? Right--the eventual home owners. And these districts are usually set up to be so undemocratic that they make HOAs look like Rousseau's peasants regulating the affairs of state under an oak tree (Jean-Jacques Rousseau, The Social Contract, Book IV, Ch. 1, if you are interested). Interestingly, most of the people who think HOAs are undemocratic and illiberal have zero to say about special districts.