Tax cut erosion is a major concern around the state. Since 2019, the Texas Legislature has committed substantial resources toward reducing property tax bills through twin strategies: compressing school district maintenance and operations (M&O) tax rates1 and increasing the residence homestead exemption. However, the Legislature’s tax relief efforts have largely been frustrated by the excesses of local government, which commonly take the form of aggressive rate hikes, frequent voter-approval tax rate elections (VATREs), large and costly bond propositions, and the abuse of certificates of obligation (COs).
Taxes & Spending
Assessing Tax Trends in the City of Austin
Does history suggest that property taxes are too high in the city of Austin? And, if so, have local decision-makers actively helped or hurt the situation? To help answer these questions, let’s review the city’s 2024 Annual Comprehensive Financial Report (ACFR) and gather four types of data—i.e., tax levies, local population, total tax rates, and taxable values—over a 10-year time horizon. Using these audited estimates, we can gauge the growth of government (i.e., tax levy trends), assess its reasonability...
February 19, 2026