NW Valley Times

The Arizona House of Representatives, led by Speaker Steve Montenegro, has initiated legal action against the Arizona Department of Water Resources (ADWR). The lawsuit, filed in collaboration with the Home Builders Association of Central Arizona (HBACA) and the Arizona Senate, challenges ADWR's implementation of a groundwater tax that is alleged to increase housing costs statewide.

Speaker Montenegro described the tax as "government overreach at its worst," criticizing it for making homeownership less attainable. He said, "The 33.3% groundwater tax represents not only a blatant overreach of executive authority but also a direct attack on hardworking Arizona families who will see the price of new homes increase by thousands."

The contested regulation requires developers to secure 33.3% more water than needed for their projects, effectively making future homeowners subsidize other users' unreplenished groundwater consumption. This mandate was enacted without legislative approval and is argued to exceed existing legal boundaries.

Montenegro emphasized that the Legislature had previously declared this tax illegal through various resolutions. He asserted, "This is a cut-and-dried case. The department has gone rogue, acting as if it is above the law and unaccountable to the people of Arizona."

The lawsuit seeks to nullify these regulations and prevent additional costs from being transferred to homebuyers in Arizona. A copy of the lawsuit has been made available.

Steve Montenegro serves as Speaker for Legislative District 29 in areas including Goodyear and Surprise.

Information from this article can be found here.