Beginning October 20, Austin residents will go to the polls to vote on the 16% property tax rate increase proposed by the City of Austin. The item will appear on the ballot as Proposition Q. Austin is the first large city in Texas to propose a Tax Rate Election (TRE) for its city budget.  If Prop Q passes, it will set the new permanent tax floor for Austin.  It is not a one-time increase to cover shortfalls – it is the tax level from which future increases will be calculated.

The City of Austin is $33 million short of the funding for its stated community goals. Yet, it is proposing a TRE that will raise $109.5 million (three times that amount).    Even with the utilities removed, Austin has the highest per capita taxes in Texas.   Excluding the utility portion of the Austin budget, Austin will tax at a rate of $3,630 per capita, while Fort Worth, the city closest in population, taxes at $2,758 per capita. Austin’s rate is 30% higher, and our tax per capita has been increasing steadily.  The TRE tax increase, while funding some commendable programs, will undeniably make Austin more unaffordable for residents, whether they own or rent their homes. Same for local businesses.

After being sold one thing and delivered another—looking at you, Project Connect shrinking light rail —many Austinites may understandably wonder:   Will the city actually spend this money the way they say they will?

As lower and middle-income individuals and families grapple with the rapidly increasing cost of living in Austin (including utility rates and taxes from multiple entities and taxing districts), many people may question why the city doesn’t adopt the same belt-tightening measures that its residents are forced to adopt (do we really need a new convention center?)    Why didn’t the City Council commission an external audit to find inefficiencies and save money?   Houston had an external audit and saved $120 million.

Will the council’s* legacy be “We spent the most!”  (*Note: Council Member Marc Duchen was the lone vote against the TRE.)

More Information:

City of Austin Budget and Tax Rate Overview

The Austin Independent:   “The Silence of the Shams” and “The Inherent Tension” Between Taxes and Affordability – Plus a Look at Campaign Contributions in the Prop Q Election”

Austin American-Statesman “We wish we could support Austin’s Prop Q. Here’s why we can’t endorse it”  and “For Austin homeowners, every tax hike comes from the same wallet”.

Watch More Affordable Austin statements, including Gonzalo Barrientos,  Ellen Wood, Marc Duchen, Steven Brown, Ora Houston, and Robin Rather (among others).

Austin Neighborhoods Council Statement on the TRE.

Early voting: October 20 – 31

Election day: Tuesday, November 4

Travis County polling locations