Austin Tax Rate Election

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Austin City Council has called a special Tax Rate Election (TRE) for November 2025. This critical vote will determine whether property taxes increase by 5¢ per $100 valuation, generating an additional $110M in revenue. Get the facts to make an informed decision.

57.4¢
Proposed City Tax Rate
vs 47.76¢ last year
+$482
Annual Increase
Per $500k home value
Nov 4
Election Day
Early voting Oct 20-31

📢 Total Tax Burden Update

It's not just the City! Travis County increased property taxes from $0.344445 to $0.372 (8% increase, $0.0275556). Central Health went from $0.107969 to $0.118023 (about 1 cent). Last year saw massive increases: AISD ($0.091) and Travis County "day care" TRE ($0.025). The City's new rate would be $0.574017 — an increase of $0.096417 over last year's $0.4776. That's $96.42 per $100k valuation or $482 on a $500k home.

Multiple Tax Increases Compounding Effect

🏛️ Understanding Tax Rate Elections - What is it?

What You Need to Know

  • A Tax Rate Election (TRE) asks voters to approve a property tax rate above the state's voter-approval cap
  • If approved: The higher rate applies immediately and becomes the new baseline for future years
  • If rejected: The rate defaults to the voter-approval rate, requiring budget adjustments
  • ℹ️ This affects only the city portion of your property tax (separate from county, school, and special districts)

📢 Latest Updates

Important Update September 22, 2025

The Real Tax Impact: Almost $0.10 per $100

One thing we should highlight is that the City has baked in the 3.5% increase. That basically adds a penny or two to the 5 cents the TRE raises.

Last Year's Tax Rate

$0.4776
per $100 valuation

2025 with Successful TRE

$0.574017
per $100 valuation

Unless your valuation went down, the increase is just shy of $0.10 or $500 on a $500,000 home.

Real Impact Examples:

  • $300k home: ~$300 annual increase
  • $500k home: ~$500 annual increase
  • $750k home: ~$750 annual increase

Stay Informed

We'll continue to update this section with the latest developments about Prop Q and the Tax Rate Election. Check back regularly for new information.

Have questions or want to share information? Contact us at austintaxrateelection@gmail.com

📊 Budget Facts

⚠️ The "Shortfall" Myth

The alleged budget "shortfall" justifying the TRE could be resolved by just 0.5% of the $6.3 billion budget. This year's budget increased by $400 million from last year's $5.9B — that's 14 times the "deficit". Meanwhile, population growth has stalled and inflation is under 3%. The TRE creates an undefined slush fund for pet projects and friends of City Hall, not essential services.

$400M budget increase
14x the alleged deficit
Population growth stalled
80%
Budget Growth
vs 10% Population Growth
$2,500
More Per Resident
Spending increase
$500M+
Internal Services
Administrative costs

Budget Growth vs. Population

City budget exploded from $3.5B (2015) to $6.3B (2025) while population grew only ~10%. This is crazy!

80% budget increase
25-30% real growth after inflation
Austin Budget vs Population Growth (2015–2025)
Austin Budget vs Population Growth (2015–2025)

Per-Resident Spending Surge

Spending per resident jumped from $3,800 (2015) to $6,300 (2025).

$2,500 more per person
25% increase after inflation
Per-Resident Spending Over Time
Per-Resident Spending Growth

Our Debt is Growing

General debt service nearly doubled from $149M to $288M yearly.

1 in 5 dollars goes to debt
Debt Service vs General Fund Revenue
Debt Service vs General Fund Revenue

Administrative Hiring is Out of Control

"Internal Services & Transfers" - the people working in the offices of the various city departments - primarily burecrats - exceeds $500M annually — more than Parks, Libraries, and Public Health combined.

Bureaucracy over services
FTE Growth by Department
Staff Growth by Department

Budget Priority Comparison

Administrative costs now dwarf direct citizen services. We are paying salaries for people to coordinate, not actually provide direct city services, like Police, Fire, and Sanitation.

Internal Services vs Direct Services
Internal Services vs Parks, Libraries, Public Health

Austin Energy Inefficiency

Not only is the budget out of control, Austin Energy's budget increased 67% while electricity delivered grew only 30%.

Costs outpacing service
Austin Energy Budget vs Delivery
Austin Energy Budget vs Electricity Delivered

🚇 Project Connect: A Financial Disaster

Project Connect (ProCON) is collapsing under its own weight:

  • 💸 Cost ballooned from $5.1B to over $7B in just one year
  • ⚠️ FTA federal funding is unlikely and faces legal challenges
  • 🚫 $200M/year operating costs remain completely unfunded
  • 💰 Austin already transfers over $180M/year to this boondoggle

Austin does not have the financial capacity to fund Project Connect. It's only a matter of time before it collapses, yet the City wants more tax money.

37% cost overrun
No operating funds
Legal challenges pending

⚖️ Prop Q: Vote No

✓ Love Austin Campaign (Yes)

"Abbot and Trump take care of their own"

What does this even mean? That we don't have to be responsible for our city budget because we dislike Abbot/Trump policies? This is a child's argument.

"Funding public safety"

While police staffing and response times lag despite record spending.

"Essential services need funding"

False canard — there's plenty of money and a duty to fund parks, emergency services, and homeless programs. The City just prioritizes bureaucracy over services.

"Avoiding service cuts"

Meaning no pressure to address inefficiencies or bloated departments.

✗ Vote No on Prop Q

Unaccountable Spending

NGOs receiving $650M+ for homelessness with minimal results or oversight.

Misplaced Priorities

Police and core services should come before bureaucratic expansion.

Out of Touch

Council ignores deteriorating quality of life while raising taxes.

Unsustainable Growth

Spending growing 8x faster than population with little improvement.

Bureaucratic Bloat

Administrative costs crowding out frontline services.

Breaking Point

Higher taxes push residents toward financial crisis.

🎭 Myth vs. Fact: Prop Q

🚫 MYTH

"Trump slashed Austin's federal funding."

✅ FACT

Federal money is set by Congress and formulas, not targeted at one city. If Austin lost a grant, it's on City Hall, not D.C.

🚫 MYTH

"Abbott forced City Hall to raise taxes."

✅ FACT

State law just says: if the city wants more than the cap, it must ask voters. That's protection, not a mandate to hike.

🚫 MYTH

"Prop Q fixes a budget shortfall."

✅ FACT

They never define the shortfall. Austin is pulling in record revenues — the issue is spending priorities, not missing money.

🚫 MYTH

"Prop Q restores Trump's cuts."

✅ FACT

There's no such thing as city-specific "Trump cuts." It's a slogan to cover bad budgeting.

🚫 MYTH

"Prop Q guarantees funds for homelessness, safety, parks, and libraries."

✅ FACT

The ballot language has no lockbox, no metrics, and no audits. Without accountability, it's just another blank check.

🚫 MYTH

"Austin takes care of its own."

✅ FACT

Exactly — and that means living within record revenues, funding essentials first, and demanding results, not excuses.

💰 How This Affects You

🏠 Homeowners

City tax rate × taxable value = your bill. The TRE alone means $96.42 per $100k valuation. For a $500k home, that's $482/year more just from the City. Add Travis County and Central Health increases, and you're looking at much more.

$482+ on $500k home
Plus county/health increases

🏢 Renters

Property taxes are landlords' major expense. Rate increases typically pass through to rent over time.

Indirect but real impact

🏪 Small Businesses

Commercial properties lack homestead protection. Rate changes directly impact operating costs.

Full rate exposure

🗳️ How to Vote

Nov 4
Election Day
Tuesday, 7am – 7pm
Oct 20-31
Early Voting
Times vary by location
Oct 7
Registration Deadline
Must be registered to vote

📚 Sources & Methodology

  • Primary sources: City of Austin Approved Budget Books and CAFRs, FY2015–FY2026
  • Austin Energy financial and operating reports
  • Figures rounded for clarity; departments reorganized for consistency
  • All data from publicly available documents