Latest news with #taxrateelection
Yahoo
06-08-2025
- Business
- Yahoo
How much could the city of Austin raise your property tax bill this year?
AUSTIN (KXAN) — Thursday, Austin City Council is set to declare a maximum property tax rate, which it will use as a cap during its ongoing budget process. The tax rate that's ultimately adopted by city council may end up being lower than that cap. Much of that discussion Thursday is likely to be centered around declaring a maximum tax rate higher than what is allowed by state law without ultimately triggering a tax rate election. In 2019, Texas lawmakers made it so that local governing bodies cannot raise the property tax rate year-over-year more than 3.5% without taking that hike to voters. 'Band-Aid budget': Council members concerned proposed budget cuts too much from community needs 'Because our community has raised important issues and questions about Austin's needs–and the potential need for a tax rate election to meet those needs–it is likely that the maximum tax rate we declare on July 31st, will be a tax rate that, if ultimately adopted, would trigger an election. This is because, if we don't declare the possibility of such a rate, then we preclude a TRE. I believe we will want to keep our options open as we go through the budget process. It is possible (more likely, probable) that the maximum rate we declare on July 31st is higher than what we will finally adopt when we pass a budget.' Austin Mayor Kirk Watson What would the proposed budget cost you without a tax rate election? Right now, the city manager's proposed budget sits at the 3.5% limit set by state law. Still, that proposed budget would cost the average ratepayer and homeowner $268.23 more per year. That breaks down to a proposed property tax rate of $0.5276 cents per $100 assessed property valuation. So the 'typical' Austin homeowner would see an increase of $12.90 per month, or $154.83 per year, in the city's portion of their annual property tax bill. The city's rates and fees, including for electricity, trash service, water, drainage, and the transportation user fee, would also rise under the proposed budget. Add those in and the projected increase for the typical Austin tax and ratepayer is $22.35 per month, or $268.23 per year. Austin city manager proposes $6B+ budget, as mayor floats tax rate change The city of Austin accounts for roughly a quarter of your property tax bill. Austin Independent School District (AISD) takes the largest chunk. Travis County, the Austin-Travis County health district (Central Health) and Austin Community College also take property taxes from you. How much would it cost if Austin votes to go above that 3.5% rate? According to Watson, every one cent the tax rate increases, the typical taxpayer's bill will go up by another $40.26 per year. But it would also generate roughly $21.6 million in city services. Austin budget building: Your council member's concerns, priorities heading into work sessions While some homeowners can declare property tax exemptions — like homestead, senior or disability exemptions — those only apply to homeowners, not landlords. Watson expressed concern that those rate increases would be passed from landlords to renters. 'Austin is too unaffordable. There's an inherent tension between collecting the public's money to pay for our needs and adding to our affordability challenges. We have to be balanced, disciplined, and stable in this difficult process. We don't want to inappropriately contribute to the problem we say we're trying to solve,' Watson said. But some city council members have expressed concern about the cuts made in the current budget and what it will mean for services if the city doesn't ask voters for more money. Austin City Council Member Mike Siegel said in his newsletter that his plan is to advocate for a $0.07 cent tax rate increase, which would trigger a tax rate election. 'I know it is painful to increase taxation, but the alternatives are worse. We want pools open in summer, parks and roads maintained, health programs to promote immunizations, and housing programs to provide shelter,' Siegel wrote. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Yahoo
06-08-2025
- Business
- Yahoo
Austin city council signals a tax rate election is coming, but for how much?
AUSTIN (KXAN) — Tuesday, the group of Austin city council members who sit on the Audit and Finance Committee voted to recommend a tax rate election to the full council next week when the body votes on its property tax rate and budget. Because of a 2019 state law, taxing entities cannot raise the property tax rate more than 3.5% from the year prior without triggering a tax rate election (TRE). That's where the city manager's base budget sits right now — at the 3.5% rate allowed without triggering a TRE — which would still mean a total monthly increase of $18.18 per month or $218.16 annually for the 'average' ratepayer and taxpayer. Austin budget building: Your council member's concerns, priorities heading into work sessions Because of significant budget challenges this year, including a dip in sales tax revenue and cuts at the federal level, some Austin city council members and the mayor are considering a tax rate election that would raise your property taxes more than that proposed base budget. Now that a tax rate election has been recommended to the full council, as is part of the city's new tax rate election policy, here's what each council member is proposing be in that ask of voters: Proposal A: $485.36 more for average rate payer and homeowner Mayor Pro Tem Vanessa Fuentes (D2) and Austin City Council Members Jose Velásquez (D3), Chito Vela (D4) and Ryan Alter (D5) are proposing a 6.75 cent tax increase, the most costly proposal, which they say will do the following, in-part: Fund the city's plan to combat homelessness 'by including 'upstream' elements that keep people housed or quickly get them back into housing' Expand the city's affordable housing programs Take a 'significant step' toward better maintaining parks You can read the full proposal here. That 6.75 cent tax increase, if approved by voters, would tack roughly $267.20 onto the city manager's proposed base budget. That means in total, the average homeowner and rate payer would spend $485.36 more next year. Proposal B: $445.02 more Austin City Council Members Krista Laine (D6), Mike Siegel (D7), Paige Ellis (D8) and Zo Qadri (D9) are proposing a 5.75 cent tax increase scenario that 'responds to demands to protect public health programs, improve emergency response, provide shelter and support for people experiencing homelessness, and invest in climate resilience,' the group wrote. Austin firefighters push back against proposed budget's staffing requirement changes 'We have also prioritized sidewalks and parks maintenance, access to pools, restoring funding to the Office of Police Oversight and the Housing Trust Fund, library resources and reentry workforce development and much more. Finally, like our colleagues, we are prioritizing caring for our civilian employees and ensuring future cost of living increases,' they continued. That proposal — at the 5.75 cent tax increase — would cost the average homeowner $226.86 on top of the city manager's base budget, according to a scenario chart provided by city of Austin staff. In total, and if approved by voters, that proposal would ultimately cost the average homeowner and ratepayer $445.02 more next year. You can find that proposal — and what would be funded by it — laid out here. Mayor Kirk Watson proposal: $356.70 more Watson is proposing a less significant rate increase, but still advocating for a tax rate election. The mayor is proposing a 3.5 cent tax increase, which would raise the average homeowners property taxes by $138.54 over the city manager's base proposal. In total, that proposal would result in $356.70 more for the average ratepayer and homeowner. Travis County considering higher tax rate allowed after flooding disaster The mayor's additions would cover the Homeless Strategy Office's funding plan, adds money for park maintenance and wildfire mitigation. You can find Watson's proposal here. 'It doesn't do all that I would like to see us be able to do in terms of funding services, and it also adds to the tax burden. But my hope is it offers voters a balanced way to preserve some important services while minimizing the damage on our affordability efforts,' Watson wrote. No tax rate election Austin City Council Member Marc Duchen (D10) is so far the only member of the body who has indicated he is against a tax rate election outright — citing concerns about affordability. But he also indicated he would be willing to compromise on a less significant TRE. 'If there was an interest on the dais, I would explore a compromise and support a modest one or two cent TRE that includes priorities that I believe we can all agree on, including public safety, parks, wildfire mitigation, and preserving a healthy reserve fund. I welcome any collaboration on this. However, what I heard…was 'go big or go home'. And when presented with a 5+ cent ($200+) TRE I fear Austin taxpayers will tell us to 'go home,'' Duchen said. Duchen encouraged the city to look at necessary cuts. You can read more from Duchen on his proposed plan here. No signal yet from Council Member Natasha Harper Madison Harper Madison hasn't indicated where she may fall on a tax rate election, but her staff did highlight three amendments the council member is leading on, including two amendments that would provide one-time funding for the Safe Alliance 'which has lost millions of dollars' in federal and state funding. How much could the city of Austin raise your property tax bill this year? 'One is for $250,000 in unmet needs at the City of Austin's Family Violence Shelter to be operated by The SAFE Alliance…The other is for unmet needs at The SAFE Alliance for the operation of safety net housing for youth aging out of foster care with no alternative living arrangements,' Sharon Mays, Harper Madison's chief of staff said. The third amendment is for utility relief for nonprofits. Mays said that amendment adds $250,000 in one-time funding for Austin Water and $250,000 for Austin Energy 'to subsidize or reimburse the utility costs of nonprofit shelters and housing providers.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
